U.S. Stocks Rise In Final Trading Session Of 2008
NEW YORK (MarketWatch) -- Stocks gained ground in light trading Wednesday, the final session of 2008, as investors took stock of a terrible year for global markets and took fresh positions ahead of the new year.
Year to date, the Dow industrials have slumped nearly 35%, the S&P 500 has lost 40%, and the Nasdaq Composite is off almost 42%.
But in the final week of the year, the market has been reclaiming a bit of ground, with the Dow up 3%, the S&P 500 index up 1.2%, and the Nasdaq up 1.6%.
"What we may be seeing is some early buying of prospective bottom-fishing candidates," said Marc Pado, market strategist at Cantor Fitzgerald, referring to the practice of attempting to buy beaten-down shares at their lowest point.
On Wednesday, the Dow Jones Industrial Average rose 82 points, or 1%, to 8,753, with 23 of its 30 components gaining ground.
Leading the advances among blue chips, shares of aluminum giant Alcoa Inc. were up 5% and United Technologies rose 1.4%.
However, "it doesn't take a lot to move stocks around in this environment," Pado said.
The S&P 500 index rose 9 points, or 1%, to 900, and the Nasdaq Composite rose 20 points, or 1.3%, to 1,570.
Trading volume showed 283 million shares exchanging hands on the New York Stock Exchange and 810 million shares trading on the Nasdaq. Advancing issues topped decliners by nearly 3 to 1 on the NYSE and by 2 to 1 on Nasdaq.
By sectors, industrials and consumer discretionary led the gains, with both up more than 2%, followed by materials, up 1.8%, and technology, up 1.7%.
The heavily influential financials sector, mostly responsible for this year's staggering losses, was up 1.6%.
Late Tuesday, the Federal Reserve said it will begin buying mortgage securities backed by Fannie Mae , Freddie Mac and Ginnie Mae in early January.
The Financial Times reported that American International Group may ask the Federal Reserve to ease rules governing its asset disposals. The insurer may ask for bidders to be allowed to pay for more of the assets in shares, rather than cash, to increase competition, the newspaper reported.
U.S. markets ended higher Tuesday, helped by a late rally from financial stocks and further government aid for General Motors Corp. . The Dow Jones Industrial Average closed up 184 points.
Crude oil will remain in focus after prices reversed their recent gains, dropping back below $38 a barrel. The February-dated light crude contract fell another 59 cents, or 1.5%, to $38.44 a barrel.
The dollar gained some ground after a report showed U.S. jobless claims unexpectedly fell in the latest week. The Labor Department cited seasonal volatility, while the four-week average of claims stood at the highest level since 1982.
In a quiet day for corporate news, shares of Dell Inc. rose 1% after the computer maker said Mike Cannon, president of global operations, will retire effective Jan. 31, and Mark Jarvis, chief marketing officer, will leave the company this fiscal quarter. The announcement came alongside a plan to reorganize the firm around global business groups. .
The chemicals industry also remained in focus after The Wall Street Journal reported that privately held LyondellBasell Industries may file for bankruptcy. The Netherlands-based company, which employs around 16,000 people and has large U.S. operations, has told lenders it's trying to line up as much as $2 billion in bankruptcy financing, the newspaper reported.
Asian markets ended 2008 on a high note, with Australia's S&P/ASX 200 closing up 1.9%, and shares in Europe finished broadly higher.
By Nick Godt