Above 10K, Dow Dances Higher at Close

Stocks shook off early losses and notched more gains at the Thursday close, sending the Dow Jones Industrial Average back above the 10,000 mark for a second consecutive day.

The Dow closed up 47 at 10063, and the Nasdaq was flat, up a point to 2173. The S&P 500 was up 5 at 1097, after a wave of positive earnings results for the third quarter.

In addition, conditions for New York manufacturers improved sharply in October, increasing hopes that the U.S. economy is firmly in recovery, according to the Federal Reserve Bank of New York's Empire Manufacturing Survey released Thursday. The report also showed gains in labor markets as well.

Banking giants Goldman Sachs (GS) and Citigroup (C) reported results before the open. Goldman profits soared to $5.25 a share, more than $1 a share ahead of Street estimates, while Citi notched a loss of 27 cents a share after preferred dividends.

Analysts have pointed to a wave of generally positive economic data, as well as stronger-than-forecast corporate profits for the gains in markets.

"You've got a double whammy of economic data globally that's better than expected, plus the U.S. earnings reports beating expectations," said UBS head of institutional sales George Kanaan.

"Profit news has been supportive to the market," added strategists at MF Global, pointing to the technology sector in particular.

After the closing bell Thursday, earnings reports from International Business Machines (IBM) and Google (GOOG) were released. Google posted earnings of $5.89 a share, ahead of Wall Street estimates. IBM beat earnings estimates with earnings of $2.40 a share.

Asian stocks were up, and European markets were climbing near the end of their trading sessions.

As of 4:01 p.m., oil futures traded on the Nymex were down 2 cents from the regular session close, at $77.56 a barrel.

Dow Jones Newswires contributed to this report.