The Dow Jones industrial average soared above the 10,000 mark yesterday amid long-term signs that the nation's jobs picture may be improving and that companies' profits are growing.

Economists warned that the Department of Labor will likely announce today another uptick in the nation's unemployment rate, perhaps above 10 percent.

The expected jump partly explains why Congress moved yesterday to extend jobless insurance for workers for up to 20 weeks.

But investors were heartened to see that jobless-insurance claims fell last week to 512,000, the lowest level since last January. Other data indicated that worker productivity is increasing, a development that bodes well for companies' bottom lines.

Cisco Systems also announced an upbeat financial report that pleased investors.

The Dow jumped yesterday by 203.82 points to close at 10,005, the first time since Oct. 22 that it has pushed above the five-figure mark.

Robert MacIntosh, chief economist at Boston's Eaton Vance, said the economy will have to endure several more months of job cuts as weaker companies continue to shed workers.

"There will be disappointing (jobs) news for a couple months," he said. But he said recovering companies usually start hiring new employees only after they're convinced a recession is over and a recovery is sustainable.

"It takes time for businesses to say, `This is real and I need more workers,' " he said.

Originally published by By JAY FITZGERALD.

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