Star-Bulletin news services
Rosy economic data
spurs on Wall Street
NEW YORK >> Wall Street nudged up to fresh 19-month highs yesterday as a trio of economic reports -- one on gross domestic product, the others on consumer sentiment and spending -- provided investors additional evidence of an improving economy.
Volume was light on the last full trading day before the Christmas holiday. The stock market will open for a half session today, close tomorrow for Christmas and then reopen for a half session Friday.
"The bottom line is the market has been creeping higher pretty much every day," said Brian Pears, head equity trader at Victory Capital Management in Cleveland. "It's a continuation of the rally based on optimism for next year."
"People want to be fully invested coming into year's end that it's hard to believe we'll have a major move down for the rest of the year," he added.
Advancing issues outnumbered decliners about 9 to 5 on the New York Stock Exchange. Consolidated volume came to 1.51 billion shares, compared with 1.59 billion traded Monday. The Dow Jones industrial average closed up 3.26, or 0.03 percent, at 10,341.26, following a five-day gain of 315 points. The blue chip average is now trading at its highest level since May 17, 2002, when the Dow closed at 10,353.08.
The broader market also finished higher. The Nasdaq composite index gained 18.98, or 1 percent, to 1,974.78. And the Standard & Poor's 500 index rose 3.08, or 0.3 percent, to 1,096.02. It was the highest level since May 23, 2002, when the index closed at 1,097.08. The Russell 2000 index, which tracks smaller company stocks, rose 5.66, or 1 percent, to 555.03.
The price of the Treasury's 10-year note closed down 13/16 point, while its yield rose to 4.27 percent from 4.17 percent yesterday. Two-year Treasury notes were down 1/8 point and yielded 1.88 percent, up from 1.81 percent yesterday.
The Commerce Department reported yesterday that the nation's gross domestic product grew at an 8.2 percent annual rate in the third quarter, the best showing since 1983. The latest reading was identical to the preliminary estimate made a month ago. In a separate report, the department said consumer spending rose by 0.4 percent in November while incomes rose 0.5 percent. The income reading was slightly above Wall Street's expectations, but consumer spending was slightly below.
Meanwhile, the University of Michigan's consumer sentiment gauge moved to 92.6 in December, down slightly from November's figure of 93.7, according to Dow Jones Newswires.
Research in Motion Ltd. jumped $23.51, or 51 percent, to $69.61 after the maker of the BlackBerry wireless device raised its fourth-quarter outlook; several brokerages also raised it's stock rating.
Target Corp. fell 13 cents to $38.03 after the discounter said December sales were falling below estimates.
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