* Nasdaq hits 10-yr high
* Fed in no hurry to reduce support for the economy
* Russell 2000 Index ends at record high of 858.31
* Dow up 0.8 pct, S&P up 0.6 pct, Nasdaq up 0.8 pct
(Adds Starbucks earnings after the bell, volume)
By Chuck Mikolajczak
NEW YORK, April 27 (Reuters) - The Nasdaq jumped to a
10-year high as U.S. stocks rallied on Wednesday after Fed
Chairman Ben Bernanke's first-ever press conference did
nothing to short-circuit investors' optimistic outlook on the
economy.
All three major U.S. stock indexes extended gains after
comments from Bernanke at his press conference, where he
reiterated the Fed's stance that inflation was a transitory
problem related largely to commodity price pressures.
The Nasdaq Composite Index closed at 2,869.88, its highest
close since Dec. 12, 2000. Among the day's leading Nasdaq
gainers were retailers and biotechnology names.
The Russell 2000 Index <.TOY> hit an all-time closing high
of 858.31 as investors kept buying small-caps, a sector
associated with a strong outlook for economic growth.
Tom Sowanick, chief investment officer of OmniVest in
Princeton, N.J., said the Federal Reserve is "inviting asset
inflation" as reflected in the stock market's price action.
The Fed's policy-setting Federal Open Market Committee
said in a statement it intends to complete its $600 billion
bond buying program in June as scheduled. For details, see
[]
At the news conference, Bernanke said there was "a bit
less momentum in the economy" and he foresaw "a relatively
weak number, maybe under 2 percent" for growth in gross
domestic product in the first three months this year,
indicating the Fed is likely to maintain its accommodative
policy despite worries about inflation.
"He handled himself real well. He didn't fumble anything,"
said Alan Valdes, director of floor trading at DME Securities
in New York. "In all honesty, I would give him a B-plus. He
held himself up well. He didn't trip over any questions."
Biotech stocks helped boost the Nasdaq, as Regeneron
Pharmaceuticals Inc <REGN.O> surged 28.6 percent to $67.05
after its experimental cancer drug, Zaltrap, being developed
with Sanofi-Aventis <SASY.PA>, extended survival in patients
in a late-stage trial. []
The NYSEArca biotechnology index <.BTK> gained 2.8
percent.
The Dow Jones industrial average <> gained 95.59
points, or 0.76 percent, to 12,690.96. The Standard & Poor's
500 Index <.SPX> rose 8.42 points, or 0.62 percent, to
1,355.66. The Nasdaq Composite Index <> climbed 22.34
points, or 0.78 percent, to 2,869.88.
GE BUOYS DOW, STARBUCKS FALLS LATE
General Electric <GE.N> helped lift the Dow, rising 2.7
percent to $20.65 after the company's finance chief said GE's
profit growth over the next few years will be the fastest it
had seen in a decade. []
Boeing Co <BA.N>, Whirlpool Corp <WHR.N> and WellPoint Inc
<WLP.N> also moved higher after topping analysts' consensus
expectations. Boeing, also a Dow component, rose 0.8 percent
to $76.12. []
Whirlpool gained 0.9 percent to $88.65 and WellPoint added
3.5 percent to $75.54.
According to Thomson Reuters data through Wednesday, of
the 220 companies in the S&P 500 that have reported earnings,
73 percent have posted earnings above estimates.
After the closing bell, Starbucks Corp <SBUX.O> warned
that rising fuel and dairy costs will take a bigger chunk out
of earnings than previously anticipated, sending shares down
1.8 percent to $36.54 in extended trade. []
Volume was modest, with about 7.59 billion shares traded
on the New York Stock Exchange, NYSE Amex and Nasdaq, slightly
below the daily average of 7.73 billion.
Advancers outnumbered decliners by a ratio of almost 2 to
1 on the New York Stock Exchange, while on the Nasdaq, eight
stocks rose for every five that fell.
(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)
