U.S. Stocks Open Higher With Holiday Sales In Play
NEW YORK (MarketWatch) -- U.S. stocks opened higher on Friday, led by gains in energy shares as crude oil prices advanced, while retailers were in focus as post-Christmas sales kick off in earnest.
Trading is expected to remain light in volume with many traders making it a long holiday weekend.
The Dow Jones Industrial Average rose 46 points to 8,469, with 25 of its 30 components gaining ground.
Shares of General Motors Corp. led the gains among blue chips, rising 20%.
Holders of bonds of GM's finance arm, GMAC, have a Friday deadline to swap $38 billion in debt for lower-valued bonds so the firm can become a bank holding company and be eligible for financing under the U.S. Treasury Department's $700 billion Troubled Asset Relief Program. GMAC reportedly needs the approval of holders of 75% of the bonds to restructure the debt.
The S&P 500 rose 5 points to 871, while the Nasdaq Composite added 0.6 points to 1,525.
The energy sector led the gains on the S&P, rising more than 1%, as crude oil prices gained back some ground after sliding 33% this month.
No holiday cheer for retail
An early survey from the retail front pointed to a dismal Christmas shopping season for retailers.
Total retail sales dropped 5.5% to 8% for November and December, according to the MasterCard Inc.'s SpendingPulse unit. The 40% drop in the price of gasoline compared to December 2007 accounts for almost half of the decline.
Excluding gasoline, total sales were down 2% to 4% this holiday season compared to the same period in 2007.
"A difficult economic environment combined with unfavorable weather during the last week of shopping made 2008 one of the most challenging holiday shopping seasons in decades," the survey said.
The U.S. dollar traded lower Friday, with evidence of poor retail sales serving as the focus for thin post-holiday trading. The dollar index , which measures the currency versus six major counterparts, fell 0.1% to 80.814. The euro rose 0.5% to $1.4088.
Treasurys were slightly higher Friday, with 10-year note yields falling on evidence of poor retail sales, serving as the focus amid thin post-holiday trading. Ten-year note yields fell 2 basis points to 2.16%.
Asia markets finished the session mixed, with gains for Tokyo, but losses for China and South Korea.
Several markets in Asia were closed for a holiday, while U.K. and Europe markets were also closed on Friday. Japan reported a record slump in industrial production, the biggest since the government began collecting data in 1953.
On Wednesday, U.S. stocks finished higher after a shortened pre-holiday trading session, gaining ground as data on consumer spending and durable goods orders for November came in better than expected. Markets were closed on Thursday.
The Dow gained 49 points, good enough for a 0.6% advance to 8,468, with 22 of its 30 components trading higher.
By Nick Godt