J.P. Morgan, IBM Help Propel Stocks in the 'Bernanke Rally'; Yahoo Marks Biggest Drop, Lopping Off $10 Billion Of Market Capitalization
As the Dow Jones Industrial Average powered to its second-biggest gain of the year, it was energized by J.P. Morgan Chase, International Business Machines and Wal-Mart Stores. But Yahoo proved that a rising tide doesn't lift all boats, by marking its biggest decline ever.</br></br>The Dow leapt 212.19 points, or 1.96%, to 11011.42. The advance was this year's second best, behind a 217-point rise on June 29. The Nasdaq Composite Index rose 37.49, or 1.83%, to 2080.71. The Standard & Poor's 500-stock index advanced 22.95, or 1.86%, to 1259.81, returning to positive territory for the year.</br></br>The market was galvanized as Federal Reserve Chairman Ben Bernanke told lawmakers a moderation in U.S. growth "now seems to be under way," which "should help to limit inflation pressures over time."</br></br>Investors had a strong incentive to buy "because of their perception after the comments that the Fed is almost done hiking interest rates," said Phil Orlando, senior portfolio manager at Federated Investors. "But I think they put on rose-colored glasses. There are other issues out there, including corporate earnings that appear to be slowing more rapidly than previously thought, as well as the tinderbox in the Middle East."</br></br>J.P. Morgan rose $2.34, or 5.8%, to $43.05, the Dow industrial average's best percentage gainer. The nation's third-largest bank based on market value said its net income more than tripled in the second quarter amid strong growth throughout its businesses.