WALL STREET >>> DJIA Leaps 165 Points as Bernanke Soothes Investors

Buyers grabbed stocks on Bernanke's hopeful stimulus

After a brief trip into the red this morning, stocks eventually powered higher thanks to reassuring remarks from Federal Reserve Chairman Ben Bernanke. At a conference in Jackson Hole, Wyo., the central banker pledged to do whatever's necessary to resurrect the U.S. economy, should "unexpected developments" stifle the recovery.

Federal Reserve Chairman Ben Bernanke on Friday acknowledged what many Americans have been sensing for months – the economic recovery is in trouble.

While balancing his remarks with observations on how far the economy has come since the darkest days of the recent financial crisis, Bernanke conceded that growth has stalled and that the Fed remains poised to enact new programs to get things moving again.

Using cautious language, the Fed chief described economic growth as “somewhat less vigorous than we expected.” Stubbornly high unemployment is a particular concern for Fed policy makers, according to Bernanke.

The promise did more than just pacify the Street, with investors essentially shrugging off a downwardly revised forecast from Intel Corp. and another 787 Dreamliner delay from fellow blue chip Boeing Company. What's more, the bulls even triumphed despite a Commerce Department report showing second-quarter gross domestic product rose at a slower pace than previously estimated, with the major market indexes paring the majority of their weekly deficits by the close.

Further reflecting investors' revived appetite for riskier assets was the action in the bond markets, according to a senior technical strategist, who noted the heftiest single-session drop for the iShares Barclays 20+ Year Treasury Bond (TLT) exchange-traded fund in over a year.

"Proving we all can't win all the time, it was a great day for stocks, but a horrible day for bonds. The risk trade was off for the day, as money came running out of the safety play and into risky assets," he said.

The Dow Jones Industrial Average (DJIA – 10,150.65) reclaimed the 10,000 level and then some today, adding 164.8 points, or 1.7%, as all but one of its 30 components finished higher.

Leading the advancing equities were industrial issues DuPont and Alcoa, with Hewlett-Packard bucking the trend amid a heated battle for 3PAR Inc.. Thanks to today's triple-digit advance, the Dow finished the week on a relatively mild deficit of 0.6%.

The S&P 500 Index (SPX – 1,064.59) followed suit by rallying 17.4 points, or 1.7%, successfully surmounting short-term resistance in the 1,060 region. In similar fashion, the Nasdaq Composite (COMP – 2,153.63) advanced 34.9 points, or 1.7%, though the index's intraday surge was stifled by its 10-week moving average. For the week, the SPX surrendered 0.7% while the tech-rich COMP suffered a 1.2% loss.

Bernanke's assurance weigh on the dollar; Crude 3rd straight win
Crude futures finished higher for the third straight session today, as Fed Chairman Bernanke vowed to take action if the economic recovery begins to falter. The promise weighed on the value of the greenback, boosting the appeal of the dollar-denominated commodity among foreign-currency holders. Against this backdrop, crude oil for October delivery advanced $1.81, or 2.5%, to end at $75.17 per barrel – black gold's first finish north of $75 per barrel since Aug. 18. For the week, the front-month contract added 2.3%.

Central Bank measuures to resist deflations lift GOLD
Meanwhile, gold futures ended a wishy-washy session just fractionally higher today, as Bernanke said the central bank would take measures to resist deflation. By the close, December-dated gold futures gained 20 cents, or less than 0.1%, to settle at $1,237.90 an ounce.

For the week, the front-month contract added 0.7%, marking the malleable metal's fourth straight weekly gain. Elsewhere, September-dated silver futures tapped a multi-month peak of $19.34 an ounce early in the session, ending the week with an impressive gain of 5.8% -- silver's best week-over-week performance since early April.

HAPPY WEEKEND