The Dow industrials surged to a record high on Thursday as strong earnings from a range of companies cheered investors about the outlook for both the US economy and corporate profits.
Companies from financial services to retail to technology reported robust profits, including investment banks Bear Stearns Cos. and Lehman Brothers Holdings Inc Energy company shares rose after a spike in oil prices caused by Opec's decision to curtail production further.
The Dow Jones industrial average was up 107.91 points, or 0.88 percent, at 12,425.41. The Standard & Poor's 500 Index was up 13.36 points, or 0.95 percent, at 1,426.57. The Nasdaq Composite Index was up 26.68 points, or 1.10 percent, at 2,459.09.
The Dow Jones industrial average hit a record high of 12,427.17 and the S&P 500 stock index touched a six-year high. The Nasdaq rallied about 1 percent. Citigroup lifted its 2007 target for the S&P to 1,600 from 1,500.
In the financial services sector, Bear Stearns and Lehman Brothers said merger business contributed to profits that were stronger than forecast. Bear Stearns' shares were up 3.1 percent to $160.71. Lehman slipped 30 cents to $76.07 after rising as high as $77.17. Both companies' shares are traded on the New York Stock Exchange.
Costco Wholesale Corp, the largest US warehouse club, and Ciena Corp, a telecommunications equipment provider, rose after reporting higher profits. Costco shares rose 1.8 percent to $54.07 while Ciena jumped 11.1 percent to $27.74. Both companies are traded on Nasdaq.
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