Stocks set to end year on a high

0

The Dow Jones industrial average fell 15.67 points to close at 11,569.7

Stocks dipped on Thursday as investors locked in their positions at the end of the year.

While US markets fell slightly, stocks are set to end 2010 on an upbeat note – the S&P 500 index and the Dow Jones industrial average are both up 14% for the year, after dividends, thanks to record corporate profits.

The Dow is back to levels last seen in August 2008, prior to the heat of the financial crisis, while the S&P might just eke out the best December in 20 years.

Some investors are taking the last week of the month to sell and notch their profits. Others are selling stocks or funds that have lost money in order to reap the tax benefits.

The Dow Jones industrial average was off 15.67 points, or 0.1%, to 11,569.7. The S&P 500 edged down 1.9, or 0.2%, to 1,257.88. The technology-focused Nasdaq composite index fell 3.95, or 0.2%, to 2,662.98.

The week has been marked by thin trading. Thursday was considered by many to be the last trading day of note because even fewer traders are expected to show up on Friday, the last day of the year.

Investors received positive economic news. The Labour Department said that the number of Americans applying for unemployment benefits for the first time fell to its lowest point in nearly two and a half years, a sign that the job market is slowly improving. Applications dropped by 34,000 to 388,000, the fewest since July 2008.

The Chicago Purchasing Managers Index for December showed that companies in the Midwest were faring better than analysts anticipated. The index, which surveys business conditions in the states of Illinois, Indiana and Michigan, came in with a reading of 68.6, up from 62.5 in the previous month. Economists had been expecting the index to drop to 61.

US Treasurys are also down slightly, which has led to a slight bump up in yields. The yield on the benchmark 10-year bond rose to 3.37%, up from 3.35% at Wednesday’s close.

Rising and falling shares were even on the New York Stock Exchange. Floor volume came to 507 million shares.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.