Comtex SmarTrend(R) Market Close Wrap-up -- October 14, 2009

Last updated October 14, 2009: 4:45 PM ET --- The major U.S. equity indices closed higher after upbeat earnings reports from Intel Corp. (NASDAQ:INTC) and J.P. Morgan Chase (NYSE:JPM), with the Dow Jones Industrial Average back above 10,000 for the first time in a year. The Dow reached five figures in afternoon trading, seven months after it hit a 12-year low of 6,547.05 on March 9 of this year, further supporting the notion that an economic recovery is underway. The U.S. Commerce Department reported that September saw a 1.5% decline in retail sales, smaller than the consensus forecast of 2.1%. The September sales came as the government's "cash for clunkers" program ended, but merchants outside of the car business did better than expected, which is a hopeful sign for the economic recovery. The U.S. Labor Department said that import prices climbed 0.1% in September, following a revised 1.6% increase in August. Fed Chairman Ben Bernanke and his colleagues agreed to slow down the pace of a $1.25 trillion program to buy mortgage securities from Fannie Mae and Freddie Mac. Instead of wrapping up the purchases by year-end, they said they would do so by the end of March. The prices were originally estimated to increase by 2.0% and economists had expected a 0.3% gain in September. In corporate news, J.P. Morgan (NYSE:JPM) reported Q3 EPS of 82 cents, topping consensus estimates of 52 cents, and revenues surged 80.6% year-over-year to $26.62 billion, ahead of the consensus estimates of $24.96 billion. Intel (NASDAQ:INTC) shares were up 2.6% in recent trading following reporting an 8% decline in Q3 but topping earnings estimates. The Dow Jones Industrial Average closed 1.47% higher at 10,015.86, the S&P 500 was up 1.75% at 1,092.02, and the Nasdaq Composite was up 1.51% at 2,172.23.

Write to Chip Brian at cbrian@tradethetrend.com

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