NEW YORK (Reuters) - The Dow and the S&P 500 closed at record
highs on Thursday after Morgan Stanley and others reported
better-than-expected earnings and Federal Reserve Chairman Ben
Bernanke's comments further reassured markets.
Shares of Morgan Stanley (NYS:
MS -
News)
jumped 4.4 percent to $27.70, its highest close since April 2011, after
the bank posted a 42 percent increase in quarterly profit as stock
trading revenue soared. The S&P financial index climbed 1.3 percent.
Of the 21 financial companies that have reported quarterly earnings
so far, 76 percent have surpassed analysts' estimates, Thomson Reuters
data showed.
UnitedHealth (UNH.N) shares rallied, buoying the Dow and other
health insurers' stocks. UnitedHealth gained 6.5 percent to $70.55 after
the company's results beat expectations. The Morgan Stanley healthcare
payor index (PSE:
^HMO -
News) rose 3.1 percent.
Both the Dow and the S&P 500 also hit all-time intraday highs
shortly after the opening bell. The Dow climbed as high as 15,589.40,
while the S&P 500 set a record session high of 1,693.12.
Bernanke, speaking before the Senate Banking Committee, reiterated
comments he made on Wednesday to the House Financial Services Committee.
He stressed that the timeline for winding down the Fed's stimulus
program was not set in stone.
"We got no negative surprises from the Fed chairman today, so the
market liked that," said Bucky Hellwig, senior vice president of
BB&T Wealth Management in Birmingham, Alabama.
Thursday's session marked the first time that both the Dow and the
S&P 500 set intraday record highs since May 22. On that same day,
the rally was interrupted when Bernanke hinted that the Fed planned to
begin pulling back its stimulus. His comments triggered a sharp selloff,
leading to a drop of nearly 6 percent in the S&P 500 over the next
month.
The Dow Jones industrial average
rose 78.02 points, or 0.50 percent, to end at 15,548.54, a record high.
The Standard & Poor's 500 Index gained 8.46 points, or 0.50
percent, to a record close of 1,689.37. The Nasdaq Composite Index added
1.28 points, or 0.04 percent, to 3,611.28.
At Thursday's close, the benchmark S&P 500 was up 18.5 percent for the year.
Analysts' estimates for corporate earnings have been lowered so much
that investors believe the low targets should be easily exceeded.
Instead, investors probably will hone in on revenue figures and
outlooks.