- Commentary -

October 12, 2009 (FinancialWire) (By Genevieve Hawkins) — Wall Street recently bucked a downward trend and if earnings reports from Intel (NASDAQ: INTC) and other companies come in strong, the Dow could break through 10,000 points. A weak dollar helped push the Dow up 4.0% last week, while the S&P 500 gained 4.5% and the Nasdaq gained 4.5%. The rally left major US indexes at or near fresh highs for the year, and the Dow is now within striking distance of the all important 10,000 mark. Although the markets may rise above their previous highs in the coming week, investor optimism may not be enough to sustain the run-up.

For the coming week investors will be sorting through the earnings reports from notable companies including Johnson and Johnson, JP Morgan, and Goldman Sachs. The US dollar’s recent decline has also contributed to a rise in overall stock prices, but this may not continue if things calm down. Many investors will be eyeing consumer price data due on Thursday for hints about the direction of the market.

Earnings may generally disappoint this season, as the US consumer remains tapped out. The Dow may break through 10,000, but it will be hard to sustain it above that level for long.

[Go to http://www.financialwire.net/?s=genevieve+hawkins to see more commentaries by Geneveive Hawkins.]

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