* 3M, AT&T post banner profits; Dow tops 9,000
* Existing home sales up in June for third month in a row
* Dow up 2.3 pct; S&P 500 up 2.5 pct, Nasdaq up 2.6 pct
* For up-to-the-minute market news click []
(Updates to late afternoon, changes byline)
By Ellis Mnyandu
NEW YORK, July 23 (Reuters) - U.S. stocks advanced on
Thursday, sending 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 economic
recovery.
The broad-based rally lifted all 10 of the S&P 500'sbenchmark sectors into positive territory.
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 5.2
percent.
Companies posting strong results on Thursday included 3M &
Co <MMM.N>, a diversified manufacturer, and telecommunications
company AT&T Inc <T.N>, both Dow components. eBay Inc's
<EBAY.O> quarterly scorecard, released a day earlier, also
gave investors reason to be optimistic.
"It's been a wonderful run-up here. It's certainly helping
to restore investor confidence, given the trauma that people
went through," said John Coyne, president of
Philadelphia-based Brinker Capital, with $8 billion under
management.
"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."
The Dow Jones industrial average <> surged 199.74
points, or 2.25 percent, at 9,081.00. The Standard & Poor's
500 Index <.SPX> climbed 24.09 points, or 2.52 percent, to
978.16. The Nasdaq Composite Index <> jumped 49.43
points, or 2.57 percent, to 1,975.81.
The string of good news helped the S&P 500 punch through
critical technical resistance level at 960, sparking a rally
that lifted the benchmark index to 979.29 -- 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 44.7 percent since its 12-year closing
low on March 9.
The Nasdaq was on track for its 12th straight day of
gains, its longest winning streak since 1992.
3M's stock rose 7 percent to $69.17 and contributed the
most to the Dow's gain, after the diversified manufacturer
handily beat analysts' expectations, and lifted its revenue
outlook for 2009. []
Blue-chip AT&T's stock shot up 3.3 percent to $25.65 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, whose second-
quarter results beat Wall Street's expectations. The online
marketplace's stock shot up 10.4 percent to $21.48.
[]
Only three of the 30 Dow components traded lower,
including McDonald's Corp <MCD.N>. The hamburger chain's stock
fell 5.3 percent to $55.72 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 4.1 percent
to $25.44 following news that Warren Buffett's Berkshire
Hathaway Inc <BRKa.N> reduced its stake in the credit ratings
provider. []
Before the bell, U.S. government data showed claims for
jobless benefits rose last week, roughly in line with
expectations, while continuing claims declined.
Companies still expected to report quarterly earnings on
Thursday include Amazon.com Inc <AMZN.O>, American Express Co
<AXP.N> and Microsoft Corp <MSFT.O>. Their numbers are due
after the bell.
(Editing by Jan Paschal)
