After sliding for two successive days, stocks managed to find some footing and ended Thursday with impressive gains as companies from McDonald’s to PNC Financial reported solid quarterly earnings.  A mixed bag of economic reports notwithstanding, the Dow average once again scaled the 10,000 mark as components Travelers Cos, 3M Co., and AT&T Inc. posted stronger-than-expected results.

Investors, looking for bargains, picked up financial shares as many banks noted lower loan losses.  Travelers (NYSE:TRV) surged almost 8% after reporting a three-fold jump in quarterly profit.  Travelers, together with McDonald’s (NYSE:MCD), led the Dow average higher.  AT&T Inc. (NYSE:T), also a Dow component, rose 0.6% after reporting better-than-expected profit.

The Dow Jones industrial average jumped 132 points, or 1.3%, to close at 10,081.31 and the S&P 500 index rose 11 points, or 1%.  The tech-heavy NASDAQ, limited by late-session, downward guidance from eBay (NASDAQ:EBAY), gained 14 points, or 0.7%.

The

...

• Potash (NYSE:POT) reported third-quarter earnings of 82 cents a share, versus Zacks estimates of 82 cents, as revenues fell 64% to $1.1 billion. Citing continued caution among fertilizer customers, the firm projected fourth quarter earnings of 65 to 85 cents a share

• Credit Suisse (NYSE:CS) reported net profits of $2.33 billion on a surge in investment banking operations and strength in its private banking arm. Its tier one capital ratio rose to 16.4%, the highest of any of the world's major banks

• UPS (NYSE:UPS) reported third quarter results of 55 cents, three cents above Zacks estimates, on revenues of $11.15 billion, versus Zacks estimates of $11.17 billion. The company said it sees fourth quarter earnings of 58 cents to 65 cents a share

• Merck's (NYSE:MRK) third quarter results of 90 cents beat Zacks estimates by 8 cents on inline revenues of $6 billion. The firm set full year guidance

...

Stocks swung back into action Wednesday after a two-day retreat as the U.S. Federal Reserve’s optimistic comments at the end of a two-day meeting re-energized investors and bolstered hopes that the recession is finally easing.  The Central Bank’s observation that the economy appears to be “leveling out" was optimistic but its subdued outlook on unemployment and inflation took some sheen off that optimism.  The Fed also announced plans to slow the pace of its program to purchase $300 billion worth of Treasury bonds, adding the full amount will be bought by October.

The 30-stock Dow Jones industrial average finished 120 points, or 1.3%, higher.  The broad S&P 500 index rose 11 points, or 1.1%. The tech-heavy NASDAQ composite advanced 29 points, or 1.5%.  On the New York Stock Exchange 1.23 billion shares exchanged hands and advancing stocks outpaced those that fell five-to-two.

Stocks seesawed after the Fed’s announcement, with

...

A smaller-than-expected rise in weekly jobless claims and upbeat earnings from companies helped stock markets extend their impressive run this week as investors found new reason to put money into stocks.  All stock indexes managed bigger gains as the session progressed but lost some momentum towards the end.        

The Dow Jones industrial average rose 83 points, or 0.9% and the broader S&P 500 index added 11 points, or 1.2%, to 986.75, its highest close since November 4.  The tech-heavy Nasdaq gained 16 points, or 0.8%, to close at its highest level since October 1.

The much-awaited GDP report this morning demonstrated a smaller-than-expected 1% contraction, signaling the recession is losing force. Expectations were for a 1.5% drop.

Yesterday, GE (NYSE:GE) led the Dow Jones industrial average higher after the conglomerate was upgraded to “buy" from “neutral" by Goldman Sachs (NYSE:GS). The analysts at Goldman Sachs said chances of GE

...

• Goldman Sachs (NYSE:GS) raised General Electric (NYSE:GE) to "buy" and upped its price target on the firm to $15 from $13

• American Express (NYSE:AXP) joined the ranks of banks buying back TARP-issued warrants, as it paid the Treasury $340 million, providing the government a 26% return on its investment.  Other firms include Goldman Sachs (NYSE:GS), US Bancorp (NYSE:USB), and State Street (NYSE:STT)

• Sumitomo Trust announced plans to acquire Citigroup's (NYSE:C) entire stake in Nikko Asset Management for $1.2 billion

• Sanofi-Aventis announced it agreed to acquire a 50% stake in Merck's (NYSE:MRK) animal health venture for $4 billion

• Visa (NYSE:V) reported earnings, ex-items, of 67 cents a share, ahead of Street projections of 64 cents on revenues of $1.6 billion, versus estimates of $1.64 billion

• Motorola (NYSE:MOT) topped estimates for the second quarter with adjusted results of a one cent loss versus estimates of a 4 cent loss.  The company

...

A weak durable goods order report and a slide in commodity prices sent indices to a second consecutive day of light losses as stocks appeared vulnerable to a pullback in the absence of reassuring economic signs.  A search and advertising deal between Microsoft and Yahoo also received a cold response from investors even as the Federal Reserve contended that the severity of recession is easing in most parts of the country.  Also driving the markets lower were shares of oil and gas producers and basic material manufacturers as oil prices declined for another day.  Crude prices plunged $3.88 to $63.35 a barrel after the Energy Department reported a sharper-than-expected build in weekly crude inventories.  

On Tuesday, stocks had declined after a weaker-than-anticipated consumer confidence report and a lackadaisical response to the auction of 2-year notes drew investors to the selling table.  The trend continued Wednesday and treasuries moved lower

...

U.S. stocks indices continued to soar Friday but the tech-heavy Nasdaq failed to hold on to its 12-session winning run after Microsoft’s quarterly profit came in below analysts’ expectations.  Nevertheless, upbeat earnings reports and housing sales helped the broader market record gains and resume the rally that began in March but lost steam in mid-June as confidence about an incipient economic recovery started to falter. 

During the last two weeks, as companies reported numbers that surprised the Street and gave an upbeat outlook, hope that the economy had come out of the worst started to rebuild and investors, albeit cautiously, began to build positions.  During the past two weeks major stock indices climbed at least 11%.  Investors’ increasing appetite for risk was reflected in Dow’s 188 point jump on Thursday.  Nevertheless, fear and skepticism did not entirely disappear from the market and traders remained conservative on certain fronts.

The

...

For the first time in over a year, the Dow is actually challenging the 200-day moving average. Adding two new components to the Dow may provide the boost needed to break above this significant trend line. Would such a break, however, mean that the worst is over, or is another collapse still possible?  It doesn’t happen often, but when it does; it’s kind of a big deal – changes to the Dow Jones (NYSEArca: DIA).

Those changes, however, are becoming more frequent. On September 22, 2009, Kraft Foods (NYSE: KFT) replaced American International Group (NYSE: AIG).

Ever since then, the Dow has been underweighted in financials. The reduced financial exposure explains why the Dow has performaned better than the S&P 500 (NYSEArca: SPY), over the past year or so. The Financial Select Sector SPDRs (NYSEArca: XLF) were the worst performing sector, up until the

…

The bankruptcy of General Motors isn’t surprising … in fact, Martin repeatedly warned Money & Markets readers — for years — that it was coming. Still, the effects of this bankruptcy will reach all corners of the U.S. economy. Common stock holders will likely get wiped out. More than 1,100 dealerships have already received notices that they will have to shut down. Another 1,500 are getting cut in the near future. That will severely impact many already-suffering local economies. Meanwhile, thousands and thousands of autoworkers are losing their jobs. GM announced nine more plant closures and is idling three more. Many Americans have had their faith in U.S. manufacturing and ingenuity shaken to the core. And as perhaps the final symbol of GM’s utter failure, yesterday the company was ...

New Dow Components: Cisco & Travelers The Dow Jones editorial board, which runs the Dow Jones Industrial Average ($DJI), selected Cisco Systems (CSCO) and Travelers (TRV) as replacements for General Motors (GM) and Citigroup (C). GM is being removed because it is bankrupt. C is being removed because of its ongoing restructuring. I think Dow Jones missed a good opportunity to position the average for the changing global economy. CSCO has long been considered to be a prime candidate for the Dow. Given its size and influence, it's difficult to argue against adding the telecom equipment company. However, the average already has Hewlett-Packard (HPQ), International Business Machines (IBM) and Intel (INTC) -- 3 bellwethers of the tech sector. Therefore, I think a better choice would have been Google (GOOG). Adding GOOG would have given the Dow ...