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Capping off an impressive Santa Claus rally, Wall Street enjoyed another burst of buying on Thursday as the markets closed at fresh 2009 highs amid new data revealing jobless claims fell last week to their lowest levels since the collapse of Lehman Brothers in Sept. 2008.
Today’s Markets
The Dow Jones Industrial Average rose 53.66 points, or 0.51%, to 10520.10, the Standard & Poor's 500 added 5.89 points, or 0.53%, to 1126.48 and the Nasdaq Composite picked up 16.05 points, or 0.71%, to 2285.69. The FOX 50 gained 4.24 points, or 0.52%, to 820.59.
Wall Street's latest gains were driven by the upbeat economic headlines and big-name tech stocks, which rallied around Apple (AAPL). But trading volume was extremely light as the markets closed three hours early at 1 p.m. EST to celebrate Christmas.The markets are also closed on Friday.
Stocks closed in the green for the fifth consecutive day and with all three major indexes at their highest levels in at least 14 months. In fact, the Dow soared 191 points this week alone -- its best week since mid-November. The bullishness fits into a historical pattern as the benchmark index has gained an average of 0.65% during the week of Christmas since 1950, beating the average weekly advance of just 0.15% over that span, according to Schaeffer's Investment Research.
“You’ve got to believe in Santa Claus. I think this will continue right into the new year," NYSE trader Ben Willis of Sunrise Securities told FOX Business, citing the markets’ momentum and strong internals.
Almost every blue-chip stock closed on a high note, led by aluminum maker Alcoa (AA), Intel's (INTC) and Travelers (TRV). The biggest percentage decliners on the benchmark index, which closed at its highest level since Oct. 1, 2008, were Merck (MRK) and Walt Disney (DIS).
Big-cap tech stocks continued to lead Wall Street higher, with the Nasdaq Composite posting its biggest weekly gain since early October and ending at its highest level since Sept. 08. Apple hit an all-time high after the Financial Times reported the company is planning a product placement announcement late next week, raising hopes the tech giant will unveil its fabled tablet computer.
“I see more upside -- potentially another 20% in 2010. I’d be buying in all dips and I’ve been doing that for my clients,” Matt McCall of Penn Financial Group told FOX Business.com.
Market sentiment was also boosted by the latest figures on the slowly healing jobs market. The Labor Department said initial jobless claims fell by 28,000 last week to 452,000 -- the lowest level since Sept. 6, 2008, just days before the implosion of investment bank Lehman Brothers. Economists had expected claims to fall to 470,000. Continuing claims, which are filed by those on benefits for more than a week, slumped by 127,000, easily exceeding expectations for a drop of just 12,000.
The new report "increases the possibility that the unemployment rate may have peaked at 10.2% in October," John Lonski, chief U.S. economist at Moody's, told FOX Business. "Apparently the return of employment growth is growing closer.”
Also, the Commerce Department said durable goods orders in November rose by 0.2%, missing estimates for a 0.5% increase of these big-ticket items. Excluding transportation, durable goods orders grew by 2% last month, doubling expectations.
Basic materials stocks also advanced as gold built on Wednesday's gains. Gold gained $10.80 a troy ounce, or 0.99%, to $1104.10. Crude oil rose 43 cents a barrel, or 0.56%, to $77.10 a barrel.
The markets had little reaction to Thursday's historic vote in Washington where the U.S. Senate signed off on the Democrats' health-care overhaul aimed at insuring tens of millions of uninsured Americans. Lawmakers must now merge the Senate's bill, which does not include the public option, with the House's more liberal version. The two houses would then need to vote on the merged bill.
Corporate Movers
Fannie Mae (FNM) and Freddie Mac (FRE) executives had their compensation packages approved by U.S. housing regulators. Fannie CEO Michael Williams and Fannie CEO Charles Haldeman are set to receive up to $6 million each in total pay for 2009.
Questcor (QCOR) soared 20% after the company said the FDA plans to review its application to market acthar to treat infantile spasms, paving the way for potential clearance by June.
Global Markets
London's FTSE 100 rose 0.56% to 5402.41, France's CAC 40 advanced 0.05% to 3912.73 and Germany's DAX was closed.
In Asia, Hong Kong's Hang Seng jumped 0.88% to 21517 and Japan's Nikkei 225 gained 1.53% to 10536.92.
Investment adviser sees brighter economy in the futureNo Christmas Hangover for Stocks Despite Airline Selloff
