US STOCKS-S&P 500 ekes out meager gains, flirts with bull market confirmation
28/12/2023 21:27
*
S&P 500 ends 0.3% record closing high
*
Weekly jobless claims higher than expected
*
China ADRs track domestic blue-chip stocks higher
*
Indexes: Dow up 0.14%, S&P up 0.04%, Nasdaq off 0.03%
(Updates with closing prices)
By Stephen Culp
NEW YORK, Dec 28 (Reuters) - The S&P 500 closed
nominally higher on Thursday, retracing early gains just before
the closing bell on the penultimate trading day of 2023.
The benchmark index concluded the light volume session just
0.3% shy of its record closing high, reached on Jan. 3, 2022.
The blue-chip Dow ended modestly green while the Nasdaq
closed a hair lower. All three indexes remained on track for
monthly, quarterly, and annual gains.
"This is one of the best end-of-year rallies we've ever seen
and a lot of this rally happened before the Fed pivot in the
middle of December," said Ryan Detrick, chief market strategist
at Carson Group in Omaha.
"It’s a nice reminder of how far we've come from the depths
of the bear market last year and reminder to investors that dark
clouds happen, but the sun always comes out again," Detrick
added.
Had the S&P 500 settled above its previous all-time
closing high, it would have confirmed that the benchmark index
entered a bull market when it reached the bear market closing
trough in October 2022.
"Reaching new highs after two years could be a subtle sign
that economic strength could be in the cards for 2024," Detrick
said.
Data released early in the day, including jobless claims,
pending home sales and preliminary trade/inventories all painted
a picture of a softening but resilient economy.
This scenario has helped cement bets the U.S. Federal
Reserve might cut its policy rate sooner than expected and could
pull off a soft landing by avoiding recession.
At last glance, financial markets have priced in a 74.1%
probability policymakers will cut the Fed funds target rate by
25 basis points in March, according to CME's FedWatch tool.
The Dow Jones Industrial Average .DJI rose 53.58 points,
or 0.14%, to 37,710.1, the S&P 500 .SPX gained 1.77 points, or
0.04%, to 4,783.35 and the Nasdaq Composite .IXIC dropped 4.04
points, or 0.03%, to 15,095.14.
Among the 11 major sectors of the S&P 500, utilities
.SPLRCU had the largest percentage gain. Energy shares .SPNY
were down the most, weighed by sagging
crude prices
CLc1 .
U.S.-listed shares of Chinese companies, including Alibaba
Holdings BABA.K , PDD Holdings PDD.O and JD.Com Inc JD.O
advanced between 0.6% and 2.7% as China's blue-chip stocks
staged their biggest jump in five months.
CytoSorbents CTSO.O slid 33.4% after the company's device
aimed at reducing bleeding during surgery failed meet the main
goal of a study.
Boeing BA.N dipped 0.7% after the planemaker urged
airlines to inspect newer 737 MAX airplanes for a possible loose
bolt in the rudder control system.
Declining issues outnumbered advancing ones on the NYSE by a
1.00-to-1 ratio; on Nasdaq, a 1.08-to-1 ratio favored decliners.
The S&P 500 posted 49 new 52-week highs and no new lows;
the Nasdaq Composite recorded 141 new highs and 37 new lows.
Volume on U.S. exchanges was 9.46 billion shares,
compared with the 12.57 billion average for the full session
over the last 20 trading days.
(Reporting by Stephen Culp; Additional reporting by Shubham
Batra and Amruta Khandekar in Bengaluru; Editing by David
Gregorio)
((stephen.culp@thomsonreuters.com; 646-223-6076;))