The markets opened higher on upbeat corporate earnings news with the Dow surging over 100 points to 12,470. The tech-heavy Nasdaq leaped 29 points to 2315.
On the upsideJPMorgan Chase (NYSE: JPM) posted lower profits versus year-ago levels, but the results beat expectations. The bank also set aside $5.1 billion as reserves and charges against loan losses. Analysts believed that the bank remains healthy enough to absorb the Bear Stearns (NYSE: BSC).
Intel (Nasdaq: INTC) posted 1st quarter revenues and profits that beat forecasts. Investors were especially impressed with the chip giant's margins and snapped up the stock. Shares of rival Advanced Micro Devices (NYSE: AMD) also rose.
Pharmaceutical company Abbott Laboratories (NYSE: ABT) posted higher earnings on strong sales of its rheumatoid arthritis drug treatment.
On the downside
Seagate Technology (NYSE: STX) reported higher revenues and earnings, but the results missed forecasts due to weak sales of notebook computer hard drives.
East West Bancorp (Nasdaq: EWBC) posted a small profit due to a large charge against real estate loan losses.
Talbot's (NYSE: TLB) which operates a chain of apparel and shoe stores reported that its letter of credit agreement lapsed without getting renewed.
In the broad market, advancing issues outpaced decliners by
a margin of 5 to 1 on the NYSE and by nearly 3 to 1 on Nasdaq.
The Russell 2000 which tracks small cap stocks added 3 points to 695.