* 3M, AT&T post banner profits; Dow tops 9,000
* Existing home sales up in June for third month in a row
* Microsoft, Amazon.com post disappointing results late
* Dow up 2.1 pct; S&P 500 up 2.3 pct, Nasdaq up 2.5 pct
* For up-to-the-minute market news click []
(Updates with Microsoft, Amazon.com and American Express
after the bell, indexes' yearly gains and volume figures)
By Ellis Mnyandu
NEW YORK, July 23 (Reuters) - U.S. stocks surged on
Thursday, driving the Dow industrials above the key 9,000 mark
for the first time since January, as strong corporate profits
and rebounding home sales spurred optimism about the economy.
The broad-based rally helped all 10 of the S&P 500's
benchmark sectors finish the day in positive territory.
Even so, stock index futures dropped in late trading,
suggesting Wall Street might hit a roadblock on Friday after
Microsoft Corp <MSFT.O>, Amazon.com Inc <AMZN.O> and American
Express <AXP.N> posted disappointing quarterly results after
the bell, sending their stocks lower.
Their reports provided a sharp contrast to robust results
that diversified manufacturer 3M & Co <MMM.N> and
telecommunications company AT&T Inc <T.N> reported before the
bell, giving the broader market a strong start on the day.
The market extended opening gains after data showed U.S.
existing home sales rose in June -- the first time since 2004
that this measure has risen three months in a row. The Dow
Jones U.S. home construction index <.DJUSHB> jumped 4.9
percent.
The Nasdaq registered its 12th straight day of gains, its
longest winning streak since 1992.
"What I like about the rally that we've seen so far is the
breadth of it. It's not really confined to a single sector.
It's broadly spread. That gives me confidence," said John
Coyne, president of Philadelphia-based Brinker Capital, with
$8 billion under management. "It's been a wonderful run-up
here. It's certainly helping to restore investor confidence,
given the trauma that people went through."
The Dow Jones industrial average <> jumped 188.03
points, or 2.12 percent, to end at 9,069.29 -- its highest
close since November 2008. It was the Dow's first close above
9,000 since January 2009.
The Standard & Poor's 500 Index <.SPX> gained 22.22
points, or 2.33 percent, to 976.29. The Nasdaq Composite Index
<> climbed 47.22 points, or 2.45 percent, to 1,973.60.
The string of good news helped the S&P 500 punch through a
critical technical resistance level at 960, sparking a rally
that lifted the benchmark index to 979.42 -- its highest
intraday level in eight months.
That breakout, according to some analysts, was an
indication that the S&P 500 could take aim at the 1,000 mark.
The S&P 500 is now up 44.3 percent since its 12-year closing
low on March 9. But it's still 37.6 percent below its record
closing high of 1,565.15 in October 2007.
For the year, the Nasdaq is up 25 percent, while the
blue-chip Dow average is up 3.34 percent and the S&P 500 is up
8.09 percent.
MICROSOFT, AMAZON AND AMEX SINK LATE
After the bell, shares of Microsoft, a tech bellwether and
a Dow component, fell about 8 percent to $23.60 from its
Nasdaq close at $25.56. During the regular session,
Microsoft's stock climbed 3.1 percent ahead of the results.
Shares of Web retailer Amazon.com lost 7.7 percent to
$86.60 in extended-hours trading, down from their Nasdaq close
at $93.87. During regular trading, Amazon's shares rose 5.7
percent before the earnings were released.
The quarterly revenues of both Microsoft and Amazon.com
missed forecasts.
American Express, a credit card company and a Dow
component, posted a lower quarterly profit, hurt by weakness
in card member spending, record credit losses, restructuring
charges and repayment of government funds. []
After the bell, American Express shares slid nearly 5
percent to $28.07 from a New York Stock Exchange close at
$29.45. In regular trading, the stock was up 2.4 percent.
POST-IT NOTE: 3M AND eBAY FLY
During the regular session, 3M's stock rose 7.4 percent to
$69.43 and contributed the most to the Dow's gain after the
diversified manufacturer's profit handily beat analysts'
expectations, and the company lifted its revenue outlook for
2009. []
Blue-chip AT&T's stock gained 2.6 percent to $25.48 after
it reported a smaller-than-expected drop in quarterly profit
as strong sales of Apple Inc's <AAPL.O> iPhone helped increase
wireless subscriber growth. []
Among the Nasdaq's major advancers was eBay Inc <EBAY.O>,
whose second-quarter results beat Wall Street's expectations.
The online marketplace's stock shot up 10.6 percent to $21.52.
[]
Only three of the Dow's 30 components ended lower,
including McDonald's Corp <MCD.N>. The hamburger chain's stock
fell 4.6 percent to $56.09 after it posted lower-than-expected
June same-store sales and its quarterly profit matched Wall
Street's forecasts. []
Elsewhere, shares of Moody's Corp <MCO.N> fell 3.8 percent
to $25.52 following news that Warren Buffett's Berkshire
Hathaway Inc <BRKa.N> reduced its stake in the credit ratings
provider. []
Before the opening bell, U.S. government data showed
claims for jobless benefits rose last week, roughly in line
with expectations, while continuing claims declined.
Volume was moderate on the New York Stock Exchange, with
1.40 billion shares changing hands, below last year's
estimated daily average of 1.49 billion. On the Nasdaq, about
3.01 billion shares traded, above last year's daily average of
2.28 billion.
Advancing stocks outnumbered declining ones on the NYSE by
a ratio of more than 5 to 1, while on the Nasdaq, about seven
stocks rose for every two that fell.
(Editing by Jan Paschal)
