* US stock index Dow Jones industrials hits 10,000
* JPMorgan earning results beat forecasts, boost stocks
* US dollar hits 14-month low vs euro, basket
* Gold hits record, oil at year's highs
(Recasts, updates with closing prices)
By Manuela Badawy
NEW YORK, Oct 14 (Reuters) - Strong quarterly profits from
major bank JPMorgan Chase pushed the benchmark U.S. stock index
Dow Jones industrial back above the 10,000 level on optimism of
an economic recovery is underway, while the U.S. dollar slide
to a 14-month low against major currencies.
The Dow Jones industrial average <> ended over the
psychologically important 10,000-level for the first time since
October 2008.
"Dow 10,000 may be largely psychological but with
tremendous levels of cash on the sidelines this may still be a
call to action for investors," said Lawrence Glazer, Managing
Partner at Mayflower Advisors in Boston.
World stocks mostly ended higher also, with the MSCI
all-country world stock index <.MIWD00000PUS> up 1.9 percent
to a new 12-month high. The index is up 28 percent this year,
and more than 70 percent since hitting a six-year low in
March.
Meanwhile, with U.S. short term interest rates among the
lowest in the developed world, investors continued to move into
higher yielding assets in other currencies, sending the U.S.
dollar to its lowest level in 14 months against a basket of
currencies.
For a graphic showing rising stocks and the fall of the
dollar, click here:
http://graphics.thomsonreuters.com/109/US_DOWUSD1009.gif
Commodity prices were supported by the weaker dollar and
gold prices <XAU=> hit a record high before ending little
changed, while crude oil prices which rose to a 2009 high above
$75 a barrel <CLc1>.
The second largest U.S. bank, JPMorgan <JPM.N>, reported
quarterly profit that easily beat forecasts, spurring optimism
that the banking system was recovering, enabling credit markets
to fuel economic growth. [] Late Tuesday leading
technology company, Intel Corp <INTC.O> also reported earnings
that beat expectations.
SAFE-HAVEN RETREAT
The U.S. Federal Reserve released minutes from its
September meeting that said some policymakers thought
increasing its purchases of mortgage-backed securities would
help the economy but did not consider inflation an imminent
threat.[]
This suggested benchmark U.S. interest rates will remain
low well into 2010, dulling the dollar's appeal, especially if
other central banks start lifting interest rates as growth
picks up.
The U.S. dollar was down against a basket of six other
currencies, with the dollar index <.DXY> down 0.66 percent at
75.475, hitting its lowest since August 2008.
The euro <EUR=> was up 0.43 percent at $1.4919 after rising
to its highest level since August 2008. Against the Japanese
yen, the dollar <JPY=> was down 0.31 percent at 89.42 yen from
a previous session close of 89.700.
U.S. government bond prices fell as stocks rose and
government data showing improvement in retail sales,
diminishing the attractiveness of safe-haven U.S. debt.
The benchmark 10-year U.S. Treasury note <US10YT=RR> fell
22/32 its yield rising to 3.4192 percent.
The U.S. government report showed total sales at retailers
fell by a less-than-expected 1.5 percent in September.
[]
European shares also rose to their highest in a year at
1,017.75, up 2.2 percent on the day, while MSCI's emerging
market equities index reached its highest since mid-August 2008
above 968.
But Thailand's benchmark stock index slipped more than four
percent to two-week lows as domestic financial markets tumbled
on concerns over the health of the country's 81-year-old king,
traders said.
(Additional reporting by Steven C. Johnson, Edward Krudy
and John Parry in New York, Tamawa Desai, Jan Harvey in
London)
