Stocks rallied on Wednesday, as a drop in oil prices, a positive Federal Reserve survey and quarterly profit reports encouraged investors.
The Dow Jones Industrial Average rose 128.87, or 1.3 percent, to 10,414.13. The Standard & Poor's 500 Index climbed 17.62, or 1.5 percent, to 1,195.76. The Nasdaq Composite Index added 35.24, or 1.7 percent, to 2,091.24.
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Shares of Cheesecake Factory Inc. rose 12.6 percent to $34.88 after the Calabasas Hills-based restaurant operator reported higher third-quarter earnings late Tuesday. On Wednesday, the company's stock rating was upgraded to "outperform" by Piper Jaffray & Co. and Bear Stearns & Co.
East West Bancorp Inc. jumped 11.9 percent to $36.98 after the San Marino-based holding company of for East West Bank said late Tuesday that its profit rose from the year-earlier period and it boosted its full-year earnings outlook. On Wednesday, East West's stock rating was raised to "buy" from "neutral" by FTN MidWest Research.
Shares of homebuilders followed the late-session rallying of the market after being down much of the day due to a downgrade of the sector by Bank of America Corp. Analyst Daniel Oppenheim said early Wednesday that the housing market will see significant slowing into 2006. Ryland Group Inc. rose 5.2 percent to $67.75.
Jakks Pacific Inc. bumped up 9.3 percent to $18.50 after the Malibu-based toymaker reaffirmed its full-year profit forecast, beating the average analyst estimate. Jakks also beat the earnings and revenue consensus estimates for its third-quarter.
And shares of a number of restaurant chains, including California Pizza Kitchen Inc., climbed Wednesday after the U.S. House of Representatives passed a bill that shields them from lawsuits brought by customers who say their food products made them fat. The L.A.-based casual dining restaurant chain rose 6.5 percent to $30.99.
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