2010-07-08 10:37

NEW YORK - US stocks soared on Wednesday, with the Dow Jones industrial average reclaiming 10,000, as a better-than-expected outlook from State Street Corp helped ignite optimism about the upcoming earnings season.

State Street Corp, a financial company, said before the opening bell that its quarterly earnings would far exceed expectations, which giving investors hope for a brighter earnings season. The bank's share rallied about 10 percent, lifting financials higher across the board.

Meanwhile, gains in some commodities such as crude oil and copper futures also providing support for the stock market.

Related readings:  US unemployment rate drops to 9.5% in June  US auto sales dip from May  Wall Street ends H1 at new 2010 closing lows US House approves overhaul of financial regulations

Crude oil for August delivery snapped a six-day losing streak on Wednesday, settling nearly 3 percent higher on the New York Mercantile Exchange, after the Energy Information Administration re-affirmed its forecast for world oil demand growth by about 1.5 million barrels a day in 2010 and 2011, and upwardly revised its estimates for oil consumption in 2009.

Further bolstering market sentiment, US retail sales probably expanded at the fastest pace in four years, with an average monthly rate of 4 percent in the first five months of the retail fiscal year that began January 31, the International Council of Shopping Centers trade group said in advance of its June report tomorrow.

Investors also shrugged off a downbeat report from Europe, which showed German factory orders unexpectedly fell in May, the first time in five months, as demand for goods from Europe's largest economy waned across the 16-nation euro region.

The Dow Jones industrial average soared 274.66 points, or 2.82 percent, to 10,018.28, the first time for the index to settle above 10,000 since June 28.

The Standard & Poor's 500 index jumped 32.21 points, or 3.13 percent, to 1,060.27 and the Nasdaq rallied 65.59 points, or 3.13 percent, to 2,159.47.  

Wednesday's rally also marked the first two-day wining streak for all three major averages in more than two weeks.