Stocks Gained Ground in Quiet Trading Day…..
U.S. stocks rose sharply, ending a two-session losing streak, though trading volumes remain subdued in the final days of the year. The heavyweight Information Technology sector led the rally, rebounding from a recent drop that has weighed on the markets this week. The equity front continued to offer little in terms of headlines, though shares of Cal-Maine Foods fell after the company missed earnings estimates. The economic calendar introduced labor data, as jobless claims ticked slightly higher compared to the prior week. Treasury yields were mixed, the U.S. dollar dropped, crude oil prices were lower, and gold traded higher. Asian stocks finished mostly lower after yesterday’s downturn in the U.S., while markets in Europe were higher despite uncertainty regarding the ultimate global impact of aggressive monetary policy tightening across the world.
The Dow Jones Industrial Average rose 345 points (1.1%) to 33,221, the S&P 500 Index jumped 66 points (1.8%) to 3,849, and the Nasdaq Composite climbed 265 points (2.6%) to 10,478. In light volume, 3.0 billion shares of NYSE-listed stocks were traded, and 4.1 billion shares changed hands on the Nasdaq. WTI crude oil lost $0.56 to $78.40 per barrel. Elsewhere, the gold spot price gained $5.60 to $1,821.40 per ounce, and the Dollar Index fell 0.6% to 103.90.
Weekly initial jobless claims came in at a level of 225,000 for the week ended December 24, in line with the consensus Bloomberg estimate and compared to the prior week’s unrevised 216,000 level. The four-week moving average dipped by 250 to 221,000, and continuing claims for the week ended December 17 rose by 41,000 to 1,710,000, north of estimates calling for 1,690,000. The four-week moving average of continuing claims increased by 25,250 to 1,679,500.
Treasury rates were mixed, as the yield on the 2-year note gained 2 bps to 4.37%, while the yields on the 10-year note and 30-year bond declined 6 bps to 3.83% and 3.92%, respectively.
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