Sam Collins

Ride the Bull, but Get Ready to Exit

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For more than a year, the Dow Jones Industrial Average (DJI) has been under 10,000, and in March most thought that it would be years before they would ever see that number again. But yesterday, following Q3 earnings from Intel (INTC) that far exceeded estimates, the Dow smashed through the barrier with broad-based buying on increased volume and closed at 10,015.86. It was its highest close since Oct. 3, 2008.

In addition to Intel, which beat Q3 estimates by 6 cents and upped its Q4 revenue estimate, JPMorgan Chase (JPM) exceeded analysts' estimates by 30 cents a share. Analysts covering JPM had expected the big bank to earn 52 cents, and it came in at 82 cents a share.

And the better earnings continued with Abbott Labs (ABT) and CSX Corp. (CSX) topping analysts' numbers. Many felt that the Abbott results offset the poor results of Johnson & Johnson (JNJ) the day before.

Retail sales for September were up 0.1% month-over-month, and business inventories for August fell more than expected.  

The Fed's minutes from the meeting on Sept. 23 show that the governors believe that even though the economic outlook has improved, it is still "quite weak." 

The U.S. dollar again closed the day lower, setting a new 52-week low.

But traders cheered on the floor of the NYSE as the Dow closed at 10,015.56, up 145 points. The S&P 500 (SPX) gained 19 points to close at 1,092, and the Nasdaq (NASD) rose 32 points to 2,172. 

The NYSE traded 1.4 billion shares with advancers over decliners by 3-to-1. The Nasdaq crossed 731 million shares, and it, too, showed advancers ahead by 3-to-1.

November crude oil was $1.03 higher at $75.18 a barrel, and the Energy Select Sector SPDR (XLE) rose to a new annual high at $57.96, up 95 cents. 

December gold fell 30 cents to $1,064.70, while the PHLX Gold/Silver Index (XAU) fell 3 cents to $179.24.