Dow breaks through 10,000 for first time in 12 months

Wall Street’s blue chip index broke through the 10,000 mark for the first time this year on the strength of earnings reports from Intel and JP Morgan Chase.

European markets also took off as German chemical company BASF posted better than expected profits.

The Dow Jones Industrial Average last hit the 10,000 mark on October 7, 2008, and hasn't closed above that level since October 3, 2008.

Its return to that level represents a milestone in the stock market's big climb back up over the past seven months from its March lows. The Dow is now up more than 50% from the 12-year closing low of 6547.05 it hit on March 9.

The Dow closed 144.80 points, or 1.5%, higher at 10,015.86. Other major market measures have also soared over the past seven months.

The S&P 500 index, for example, has rallied some 60% from its March 9 low of 676.53. It finished the day 1.7% higher at 1092.02.

The Nasdaq Composite is up 70% from its low of 1268.64 on March 9. It is now 2172.23, rising 1.5% in the latest session.

JPMorgan Chase shares rose 3.2% after reporting a $US3.59 billion, or 82USc a share, profit in the third quarter on a surge in fixed-income revenue. Intel jumped 2.2% after its forecast for $US10.5 billion in fourth-quarter revenue topped analysts’ average estimates by $US1 billion.

Canadian stocks rose for the first time in three days, led by financial and energy shares.

Royal Bank of Canada gained 0.8%, Suncor Energy added 3% as crude oil gained for a fifth day and Aquiline Resources jumped 24% after agreeing to support a takeover bid from Pan American Silver.

The S&P/TSX Composite Index finished 119.24 points, or 0.9%, up at 11,532.78. It has rallied 52% from its low on March 9.

European shares rose sharply as results from BASF, Intel and JP Morgan Chase boosted optimism about third-quarter earnings.

BASF jumped 6.6% after better-than-expected third-quarter net profit following cost cutting, growth in Asia and the integration of Ciba.

The pan-European Dow Jones Stoxx 600 Index climbed 1.9% to 246.45, up for the second time in three sessions and on track for its best daily percentage performance since gaining 2.2% on October 6.

Germany's DAX Index rose 2.1% to 5836.02, France's CAC-40 Index climbed 1.8% to 3868.60 and the UK's FTSE 100 Index advanced 1.7% to 5242.46.

Commodities: Oil up, gold down

Crude oil futures moved above $US75 a barrel to their highest level in nearly a year.

Light, sweet crude for November delivery was 67USc, or 0.9%, higher at $US74.82 a barrel in New York, after hitting an intraday peak of $US75.40. That was the highest price since October 21, 2008.

Brent crude on the ICE futures exchange traded 40USc, or 0.6%, higher at $US72.80 a barrel.

Gold futures edged lower after two sessions of gains, retreating after hitting another record high as investors worried the recent rally might be overdone.

Gold has gained nearly 5% this month, rising in seven out of the past nine sessions. It is up 20% this year.

Gold for October delivery slid 30USc to $US1063.90 an ounce in New York, after rising to $US1070.20, the highest record for a front-month contract.

The most-actively traded December contract also fell, down 30USc to $US1064.70, after touching a high of $US1072.

Currencies: Dollar down, yen up

The dollar fell to a 14-month low against the euro as investors bought higher-yielding assets.

The US currency dropped against most of the 16 most-traded counterparts tracked by Bloomberg as retail sales fell in September less than economists forecast.

The dollar declined 0.4% to $US1.4911 per euro, from $US1.4854 on Tuesday, after trading at $US1.4920, the weakest since August 2008.

The yen appreciated 0.4% to ¥89.33 per dollar, from ¥89.71. Japan’s currency was little changed at ¥133.16 per euro, compared with ¥133.26.

Canada’s dollar advanced to the strongest level in 14 months, largely driven by higher oil prices.

Forecasts give it a 67% probability of reaching parity with the US dollar. It last traded at that level in July 2008.

The Canadian dollar gained as much as 0.6% to $C1.0253 per US dollar, the strongest level since August 1, 2008. One Canadian dollar buys 97.16USc.