The markets closed almost flat yesterday, a light volume trade day primarily due to a snowstorm that kept most traders away from the Street. Investors also paid little importance to China's central bank increasing the interest rate.
The Dow Jones Industrial Average ended the day down 0.16% to 11,555.03. The S&P 500 gained 0.06% to close at 1,257.54. The Nasdaq rose 0.06% to 2,667.27. The CBOE Volatility Index (VIX) jumped 7.3% to 17.67. On the New York Stock Exchange, volumes were on the lighter side after a massive blizzard hit the Northeast disrupting commutes for traders in the New York's financial industry. Volumes were also expectedly dry due to the week squeezed in between the Christmas and New Year's holidays.
Investors remained largely unmoved by the news of the China's central bank hiking its interest rates. The decision was made primarily to slow the inflation rate and it was the second hike in approximately three months. This move by the People's Bank of China will raise the lending rate to 5.81% and the deposit rate to 2.75%. In November the inflation rate had surged to its highest level in two years.
On a sectoral basis, financial stocks moved up. Shares of American International Group AIG surged 9.3% to close at $59.38 after the insurer entered into three credit facilities for a total of $4.3 billion intended to permit the company to create loans. Bank of America BAC closed the day at $13.27, up 1.6% and Citigroup C jumped 2% to close at $4.77. JP Morgan JPM also rose 1.4% to $42.67.
On to individual stocks, H&R Block HRB slipped 7% after the company revealed late Friday that HSBC Holdings HBC has ended its contract for the controversial refund anticipation loans. Cal-Maine Foods CALM lost 3.6% after the fiscal second quarter earnings of the largest producer and distributor of fresh shell eggs missed the analysts' estimates. NGAS Resources NGAS, a horizontal drilling company, soared 40% after it agreed to be acquired by Magnum Hunter Resources MHR in an all stock deal of about $43 million.
AMER INTL GRP (AIG): Free Stock Analysis Report
BANK OF AMER CP (BAC): Free Stock Analysis Report
CITIGROUP INC (C): Free Stock Analysis Report
CAL-MAINE FOODS (CALM): Free Stock Analysis Report
HSBC HOLDINGS (HBC): Free Stock Analysis Report
BLOCK H & R (HRB): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
MAGNUM HUNTER (MHR): Free Stock Analysis Report
NGAS RESOURCES (NGAS): Free Stock Analysis Report
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