Dow surges 104 pts on strong Intel, JP Morgan

NEW YORK (AP) — Upbeat forecasts from Intel Corp. and JPMorgan Chase & Co. propelled the US stock market higher for a fifth day.

 The Dow rose 103.69, or 0.9 percent, to 11,123.11. The Dow closed over 11,000 on Monday for the first time since September 2008. It is up 2.1 percent in five days, its best advance since early March.

The Standard & Poor’s 500 index topped the 1,200 mark Wednesday for the first time in a year and a half. The Dow Jones industrial average rose 104 points and moved above 11,100.

The good news came from all directions: Earnings reports and government figures on retail sales and inflation indicated that the economy is strengthening.

One of the biggest forces behind the market’s climb came from JPMorgan Chase, which reported a better-than-expected profit for the January-March quarter. The bank is still facing big losses from souring consumer loans, but CEO Jamie Dimon said there have been clear improvements in the economy.

The forecast from chipmaker Intel boosted the technology-dominated Nasdaq composite index. Intel posted earnings and revenue after the closing bell Tuesday that topped analysts’ expectations. The company also raised its 2010 outlook.

Michael Binger, portfolio manager at Thrivent Investment Management in Minneapolis, said the strong results from leaders of the banking and technology industries are signs that the recovery is on track.

“It diminishes the chance that we go back into a double-dip recession,” he said. “It lends credence that the financial industry is recovering and the tech industry is beyond recovering and is doing very well.”

A Commerce Department report that retail sales rose again in March added to expectations that consumers are starting to spend more.

Federal Reserve Chairman Ben Bernanke told Congress’ Joint Economic Committee that the recovery should hold but that high budget deficits must be addressed to avoid big jumps in interest rates.

Bernanke cautioned that unemployment will remain an obstacle for the economy. He also repeated that interest rates will stay low for an “extended period.”