Strong earnings from key companies and better-than-expected economic news drove the market sharply higher Wednesday.
The Nasdaq jumped 1.6%, leading the way thanks to a strong tech sector. The NYSE composite rose 1.2%, the S&P 500 1.1% and the Dow 0.9%.
Volume was up on both major exchanges as Nasdaq trading hit the heaviest level since Jan. 29. All major indexes made new highs for the year amid bullish breadth.
The Nasdaq has climbed enough to erase its March 19 distribution day. That cut the Nasdaq's distribution day count to two in the past few weeks.
Before the open, investors had two positive quarterly reports in hand. Intel (INTC) reported earnings after Tuesday's close and swept past the Street's view on profit and sales. Although the chip giant isn't a top-rated stock, it provides about 80% of the processors that run PCs. So good news at Intel is good news for the tech sector.
Chip stocks rode the Intel factor to solid gains in fast trade. Among the two dozen stocks in the chipmakers group with a Composite Rating of 95 or better, nearly half notched big gains in fast trade.
Intel itself cleared a three-weeks-tight pattern.
The second good report came from JPMorgan Chase (JPM). It topped the consensus estimate on earnings. It said its dollar amount of loans in default, or near default, fell vs. the previous quarter. While the JPMorgan news was welcome, it might not be typical for banks. JPMorgan had less exposure to subprime paper and commercial real estate than many other big banks.
JPMorgan gapped up 4% and is near its October 2008 peak.
The latest economic reports gave fresh evidence of an improving recovery without price pressures. The consumer price index showed less inflation than expected, and retail sales for March beat forecasts. Business inventories for February rose, suggesting that companies were optimistic and therefore building stockpiles.
The beige book report was released, offering a positive tone.
Top-rated stocks showed exceptionally strong action. Breakouts included Dollar Financial (DLLR), Blue Coat Systems (BCSI), Marvell Technology Group (MRVL) and China Yuchai (CYD).
Meanwhile, Apple (AAPL) said it would delay the international debut of the iPad, which is good news because it's a result of unexpectedly strong demand in the U.S. Apple rose 1% in slow trade.
After the close, United Parcel Service (UPS), a bellwether for the economy, announced quarterly results ahead of its scheduled date. It topped expectations and raised guidance. The stock was up 4% after hours.
http://i42.tinypic.com/4nwna.jpg
