Stock Market News for December 24, 2009 - Market News
U.S. stocks closed higher for a fourth day on Wednesday as disappointment over a surprise drop in home sales was offset by strength in technology and commodities-related shares.
Stocks declined in early trading after a Commerce Department report noted new home sales fell to their lowest level since March. The disappointment, however, was short-lived as markets gained momentum in the afternoon, helped by a rally in the oil market. Oil surged more than 3%, rising $2.27 to $76.67 a barrel on reports of a drawdown in supplies of crude last week. Higher crude prices helped energy producers and industrial companies. Also, ebbing enthusiasm about an economic recovery hurt the dollar, making commodities attractive. Shares of Schlumberger (NYSE:SLB) rose 2% on a Barclay's (NYSE:BCS) upgrade.
The Dow Jones industrial average ended the day virtually unchanged, adding less than 0.1% to its prior day’s tally. The broader S&P 500 index gained about 2 points, or 0.2%. The Nasdaq composite advanced 17 points, or 0.7%, closing at a fresh 15-month high. For the year, the DJIA has gained over 19%, the S&P500 about 24%, and the NASDAQ about 44%. The Vix volatility index, the market’s fear gauge, inched up 0.4% to 19.63. The gauge slid below 20 for the first time since August 2008 on Tuesday.
This morning’s stock futures suggest early market gains, following improved share prices in Asian markets and strength in European bourses.
Yesterday, the greenback fell 0.4% to 77.86 against a basket of currencies, after rising to a three-month high in Tuesday's session, and following six straight session gains. A falling dollar nevertheless helped push commodity producer shares higher, with shares of Freeport McMoRan (NYSE:FCX) up 3.2% and Newmont Mining (NYSE:NEM) up 2.8%. Alcoa (NYSE:AA) rose 1.3% and was the leading gainer on the DJIA.
Homebuilder shares rose on their long-term prospects, with Pulte Homes (NYSE:PHM) up 2% and KB Home (NYSE:KBH) up 1.8%. Micron Technology (NYSE:MU) shares rose 6.2% as the company swung to profitability during its fiscal first quarter, on improved revenue results. Red Hat (NYSE:RHT) shares surged 5.2% after the company reported estimate-beating quarterly numbers.
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