While Americans enjoy record unemployment, Wall Street keeps heading north: The Dow Jones industrial average has reclaimed 10,000 for the first time in a year, on the heels of a better-than-expected earnings report from JP Morgan Chase.
It settled slightly below 10,000 after breaking the psychological barrier Wednesday afternoon.
The Dow crossed five figures in afternoon trading Wednesday, seven months after it hit a 12-year low of 6,547.05 on March 9. The comeback by the stock market's best-known indicator is the most visible sign yet that investors believe the economy is indeed recovering from the financial crisis and recession.
Cheering erupted from traders on the floor of the New York Stock Exchange as stocks briefly moved above 10,000 They fell back into the 9,990 range in the normal ebb and flow of trading. The market has passed the 10,000 mark several times in the last ten years.
Upbeat earnings reports from chip maker Intel Corp. and banker JPMorgan Chase & Co. Wednesday gave the Dow its final push past 10,000. The average has slipped back several points since crossing the milestone, but that's part of the normal ebb and flow of trading.
Investors are increasingly shaking off lingering doubts about the economy. However, analysts still warn that problems like rising unemployment and a weak housing market pose a threat to a solid recovery.
The Dow is now up 53 percent from its March low.
With the Associated Press.