Stocks gain slightly in light holiday-eve trading
Stocks rose modestly in light holiday-eve trading Wednesday after the government released downbeat but unsurprising readings on U.S. joblessness and consumer spending.
The Labor Department said initial applications for unemployment benefits rose more than anticipated to a seasonally adjusted 586,000 last week. That was the highest level since November 1982, but the workforce has grown by about half since then.
Other reports were gloomy but less grim than anticipated. The Commerce Department said consumer spending dropped 0.6% in November, the fifth straight monthly decline, while orders for durable goods fell 1%.
But Wall Street’s reaction to Wednesday’s economic data was a shrug. Investors have largely been factoring bad fourth-quarter numbers into their stock valuations.
“We’ve got to get through this year -- it’s been crazy -- and just start over,” said Stephen Carl, head of equity trading at Williams Capital Group.
On the New York Stock Exchange floor, traders gathered for a moment Wednesday to sing “Wait ‘Till the Sun Shines, Nellie.” The song, sung each year on Christmas Eve and New Year’s Eve, is about waiting for the rain to end. The tradition dates to the Great Depression.
Wednesday’s stock moves were considered largely inconsequential in the grand scheme of things.
The market closed three hours early, and volume was very low. With only four trading days left in 2008, most buying and selling appeared to be by investors trying to dress up their portfolios after a year of unprecedented market turmoil.
The market will be closed today and will reopen for a full session Friday.
The Dow Jones industrial average advanced 48.99 points, or 0.6%, to 8,468.48, snapping a five-session losing streak. The blue-chip index is well off its November lows, but is still down for December.
Broader stock indicators also gained. The Standard & Poor’s 500 index climbed 4.99 points, or 0.6%, to 868.15, and the Nasdaq composite index rose 3.36 points, or 0.2%, to 1,524.90.
Advancing issues outnumbered decliners almost 3 to 2 on the New York Stock Exchange.
Oil prices, meanwhile, continued to slide. Crude futures lost $3.63 to settle at $35.35 a barrel on the New York Mercantile Exchange.
In other market highlights:
* Southwest Airlines climbed 4% after the low-fare carrier unwound most of its fuel hedges and agreed to sell and lease back 10 jets to raise cash.
* New York Times lost 5.2%. The newspaper publisher said revenue from continuing operations fell 14% in November from a year earlier, with advertising sales sinking 21%.
* YRC Worldwide tumbled 19%. The trucking giant, which was forced last month to put up $1.5 billion in collateral because of a debt downgrade, disclosed talks to modify its credit agreements.
* The market for government bonds was little changed. The yield on the benchmark 10-year Treasury note edged up to 2.18% from 2.16% late Tuesday.
* The dollar was mixed against other major currencies. Gold prices rose.
* In overseas markets, key stock indexes fell 2.4% in Japan, 0.3% in Hong Kong, 0.9% in Britain, 0.2% in Germany and 0.4% in France.
