All eyes were on the Dow Jones industrial average Wednesday after strong third-quarter earnings by
"This rally is about much more than a number," according to Richard Ross, chief technical strategist at Auerbach Grayson, who said he went through more than 100 charts of stocks, commodities and indexes without even noticing the Dow was on the cusp of 10,000 this morning.
"We have a market and an economy that is in the process of one of the greatest comeback stories ever told," Ross said. "To ascribe any importance to an arbitrary line in the sand detracts from the true drivers of the rally."
Ross didn't dismiss the psychological impact of the level, nor the impact of the mainstream media's focus on it, but with his forecast for the Dow to hit at least 11,245 over the next nine to 12 months, 10,000 is just a pit stop on the road higher.
The 30-stock index was up 107 points at 9,978 approaching midday Wednesday, while the broader S&P 500 gained 13 points, to 1,086. The blowout third quarter from
Concerns may remain about the firm's still-rising loan loss reserves, but shares of JPMorgan gained 3.4%, with the primary focus on its profits and revenue. The figures comfortably beat analysts' estimates, but don't overlook comments attributed to the firm's executives that suggested its nickel-per-share dividend could rise as high as a dollar if all the right pieces fall into place early next year.
Burt White, chief investment officer at LPL Financial in Boston, expects dividend growth will regain some prominence this earnings season. With profits returning as the economy comes out of recession and there's more visibility on future earnings, White said dividend growth will likely be the strongest it has been in a year and have a positive influence on stock prices.
Investors were piggybacking on John Paulson Wednesday, plowing into shares of