The Dow Jones industrial average (INDU) gained 116 points, or 1.2%, to 9987, almost 2 hours into the session. The blue-chip average had risen as high as 9991.68 before stepping back slightly.
The last time the Dow crossed 10,000 during a trading session was Oct. 7, 2008, when it briefly touched 10,124.03
The S&P 500 (SPX) index rose 13 points or 1.2% and the Nasdaq composite (COMP) added 23 points or 1.1%.
The advance was broad based, with 24 of 30 Dow stocks rising.
"Today's market action is all about Intel and JPMorgan and just earnings in general," said Tom Schrader, managing director at Stifel Nicolaus.
He said that the weak retail sales report, also released Wednesday morning, indicates that the economic recovery is not going to be smooth-sailing. But regardless, "people are looking forward."
Stocks struggled Tuesday as a weak financial sector and disappointment about Johnson & Johnson (JNJ, Fortune 500)'s results kept the Dow away from 10,000.
While 10,000 is not a significant milestone on a technical basis, it's meaningful on a psychological level, analysts say. Reaching it could usher in more buyers or give investors who think the rally has been too much, too soon, a reason to retreat.
Since bottoming at 12-year lows in March of this year, the S&P 500 has surged just short of 59%, as of Tuesday's close.
Other than a few modest pullbacks, stocks have mostly managed to keep moving higher, with investors jumping in to buy the dips on worries that they are missing the boat. Repeated calls for a correction of 10% to 15% have gone unmet and are likely to continue going unmet for the short term, Schrader said.
"The problem is that it is consensus that we need a selloff and consensus is rarely right," he said.
Earnings: Two Dow issues reported better-than-expected third-quarter results, following component Alcoa (AA, Fortune 500)'s better-than-expected profit report last week. The results have fueled hopes that the third quarter could mark a turning point for corporate profits in the same way it seems to have marked a turning point for the economy.
JPMorgan Chase (JPM, Fortune 500) said it earned $3.6 billion in the quarter, as strength in its investment banking business tempered rising loan losses. The company said that consumer loan delinquencies are showing signs of stabilization, but that the trend may not continue.
JP Morgan reported higher quarterly sales and earnings that topped analysts' estimates, according to tracker Thomson Financial. Shares gained 3.4% Wednesday.
Late Tuesday, chipmaker Intel (INTC, Fortune 500) said quarterly sales and earnings fell from a year ago, but topped estimates.
Intel also issued a bullish forecast, saying that it expects fourth-quarter revenue of between $9.7 billion and $10.5 billion versus the $9.51 billion consensus. Intel also said it expects gross margins, a key measure of profitability, in the 59% to 65% range versus the 56.7% consensus. Shares gained 2.8% Wednesday.
Economy: Retail sales fell 1.5% in September, the Commerce Department said, surprising economists who were expecting sales to fall 2.1%. Sales rose 2.7% in August thanks partly to the impact of the government's Cash for Clunkers auto stimulus program.
Sales excluding autos rose 0.5% in the month versus a rise of 1.1% in August. Sales were expected to rise 0.2%.
Import prices edged up 0.1% in September, the government said, after rising 1.6% in August. Export prices fell 0.3% in September versus a revised 1.6% in August.
At 2 p.m. ET, minutes from the Federal Reserve's latest policy meeting will be released.
World markets: Global markets were mixed. In Europe, London's FTSE 100 rose 1.8%, France's CAC 40 gained 1.8% and Germany's DAX added 2.2%. Asian markets ended higher, with the exception of the Japanese Nikkei.
Bonds: Treasury prices tumbled, raising the yield on the 10-year note to 3.38% from 3.35% late Tuesday. Treasury prices and yields move in opposite directions.
Currency and commodities: The dollar fell versus the euro and the yen, extending its recent losses.
U.S. light crude oil for November delivery rose 56 cents to $74.71 a barrel on the New York Mercantile Exchange. That's the highest level in a year for oil prices.
COMEX gold for December delivery fell $4 to $1,061 an ounce after ending the previous session at a record close of $1065. Gold has been hitting record highs almost daily in response to a weak U.S. dollar and ongoing concerns about inflationary pressures.
Market breadth was positive. On the New York Stock Exchange, winners beat losers three to two on volume of 400 million shares. On the Nasdaq, advancers topped decliners two to one on volume of 870 million shares.
