Dow, S&P 500 end at all-time highs on earnings, Bernanke

NEW YORK (Reuters) - The Dow and the S&P 500 closed at record highs on Thursday after Morgan Stanley and others reported better-than-expected earnings and Federal Reserve Chairman Ben Bernanke's comments further reassured markets.

Shares of Morgan Stanley (NYS:MS - News) jumped 4.4 percent to $27.70, its highest close since April 2011, after the bank posted a 42 percent increase in quarterly profit as stock trading revenue soared. The S&P financial index climbed 1.3 percent.

Of the 21 financial companies that have reported quarterly earnings so far, 76 percent have surpassed analysts' estimates, Thomson Reuters data showed.

UnitedHealth (UNH.N) shares rallied, buoying the Dow and other health insurers' stocks. UnitedHealth gained 6.5 percent to $70.55 after the company's results beat expectations. The Morgan Stanley healthcare payor index (PSE:^HMO - News) rose 3.1 percent.

Both the Dow and the S&P 500 also hit all-time intraday highs shortly after the opening bell. The Dow climbed as high as 15,589.40, while the S&P 500 set a record session high of 1,693.12.

Bernanke, speaking before the Senate Banking Committee, reiterated comments he made on Wednesday to the House Financial Services Committee. He stressed that the timeline for winding down the Fed's stimulus program was not set in stone.

"We got no negative surprises from the Fed chairman today, so the market liked that," said Bucky Hellwig, senior vice president of BB&T Wealth Management in Birmingham, Alabama.

Thursday's session marked the first time that both the Dow and the S&P 500 set intraday record highs since May 22. On that same day, the rally was interrupted when Bernanke hinted that the Fed planned to begin pulling back its stimulus. His comments triggered a sharp selloff, leading to a drop of nearly 6 percent in the S&P 500 over the next month.

The Dow Jones industrial average rose 78.02 points, or 0.50 percent, to end at 15,548.54, a record high. The Standard & Poor's 500 Index gained 8.46 points, or 0.50 percent, to a record close of 1,689.37. The Nasdaq Composite Index added 1.28 points, or 0.04 percent, to 3,611.28.

At Thursday's close, the benchmark S&P 500 was up 18.5 percent for the year.

Analysts' estimates for corporate earnings have been lowered so much that investors believe the low targets should be easily exceeded. Instead, investors probably will hone in on revenue figures and outlooks.