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Economic data
lifts stocks
NEW YORK >> A trio of positive economic reports -- from jobless claims to manufacturing -- boosted Wall Street yesterday as investors grew more confident that the economic recovery was firmly under way. The Dow Jones industrials climbed 102 points to a 19-month high.
Buying accelerated in the late afternoon, triggered by program trading related to today's quadruple-witching day, the quarterly expiration of index futures and options as well as individual stock futures and options, analysts said.
"We do have a backdrop of better economic data which is helping lift things," said Todd Clark, head of listed equity trading at Wells Fargo Securities. "But it's the forces surrounding tomorrow's expiration which are really driving the market."
Advancing issues outnumbered decliners 3 to 1 on the NYSE. Consolidated volume was heavy at 1.99 billion shares, compared with 1.83 billion traded Wednesday.
The Dow closed up 102.82, or 1 percent, at 10,248.08, for a three-day gain of 225 points. It was the highest close since May 17, 2002, when the blue-chip average stood at 10,353.08.
The broader market also finished higher. The Nasdaq composite index gained 34.85, or 1.8 percent, to 1,956.18. The Standard & Poor's 500 index rose 12.70, or 1.2 percent, to 1,089.18. It was the highest level since May 23, 2002, when the index closed at 1,097.08. The Russell 2000 index rose 8.18, or 1.5 percent, to 546.90.
The price of the Treasury's 10-year note closed up 15/32 point, while its yield fell to 4.12 percent from 4.19 percent Wednesday. Two-year Treasury notes rose 1/32 point and yielded 1.79 percent, down from 1.81 percent Wednesday.
The Labor Department reported yesterday that new jobless claims fell last week by a seasonally adjusted 22,000 to 353,000, the lowest level since Nov. 1. The decline was larger than analysts' expectations.
Meanwhile, the Conference Board reported that its Composite Index of Leading Economic Indicators rose to 114.2 last month, offering hope that the economic recovery was gaining momentum. The 0.3 percent rise was in line with analysts' expectations.
And the Federal Reserve Bank of Philadelphia said its business conditions index, which measures the region's manufacturing sector, rose to 32.1 in December -- up from 25.9 in November and the seventh straight month of gains. Economists were expecting a more modest reading of 25.
"The numbers show that the jobs situation might be better than people expected all along ... and the economy is actually going well," said Tim Smalls, trader at SG Cowen Securities.
American Express Co. climbed $1.77 to $46.77 after UBS raised the financial company's stock rating to "buy" from "neutral."
Goldman Sachs Group Inc. lost $1 to $97.35 despite posting fourth-quarter profits that handily beat analysts' forecasts. The company also said Lloyd C. Blankfein, a Goldman vice chairman, will become the company's president after current president John Thain was named chief executive of the New York Stock Exchange.
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