Disappointing earnings reports from Intel and IBM weighed on Wall Street, as did fresh signs from Europe that taming the sovereign debt crisis remains a challenge.

MARKET CLOSE: Disappointing earnings reports from IBM and Intel ended a sharp two-day rally, during which the Dow gained 266 points.

In a choppy session, stocks on Wall Street ended lower after the prior session's biggest single-day jump in more than a year.

Aluminum giant Alcoa led declines in the Dow industrials as worries grew that a possible further tightening in China could impact demand for materials.

Merck was also weak, off 2.2%, after the drug developer said it has ended development of its first stab at a follow-on biologic drug.

After rising as high as 90 points, the Dow Jones Industrial Average closed the session 36.88 points, or 0.3%, down at 10,748.26.

The US Securities and Exchange Commission has charged billionaire Raj Rajaratnam and his New York-based hedge fund advisory firm Galleon Management LP with engaging in a massive insider trading scheme involving IBM and Intel.

The scam allegedly generated more than $US25 million in illicit gains.

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.

Finance companies and government institutions took a hit in more ways than one during the recession, losing brand equity as consumers trusted less and demanded more transparency, a global brand survey has found.

But New Zealand banks fared significantly better than overseas, according to Interbrand New Zealand head of strategy James Bickford.

The tenth annual Business Week/Interbrand Best Global Brands study found 2009 was defined by a new set of moral standards for business behaviour.