By MADLEN READ, AP Business Writer Madlen Read, Ap Business Writer
Dec. 25, 2008
NEW YORK – Wall Street rose modestly in light holiday trading Wednesday after the government released downbeat, but unsurprising, readings on rising U.S. joblessness and declining consumer spending.
The swelling rate of unemployment has been particularly worrisome to investors. The more people lose their jobs, or fear they will lose their jobs, the more they close their wallets. And consumer spending accounts for more than two-thirds of U.S. economic activity.
But Wall Street's reaction to Wednesday's economic data was a shrug. Investors have largely been factoring in bad numbers for the fourth quarter as Americans adjusted to the slumping economy, and as banks and automakers scrambled for funding from the U.S. government to stay afloat.
"We've got to get through this year — it's been crazy — and just start over," said Stephen Carl, principal and head of equity trading at The Williams Capital Group.
His wish list for 2009: "I hope more shoes don't drop in January, and I really hope that come March that the (government bailout) money is able to do what the people giving the money expect. I hope the automakers don't need anymore; I hope the plan comes to fruition."
The Labor Department said initial applications for unemployment benefits rose more than anticipated to a seasonally adjusted 586,000 last week. That was the highest level since November 1982, though the work force has grown by about half since then.
Other reports were gloomy, but less grim than anticipated. The Commerce Department said consumer spending dropped 0.6 percent in November — the fifth straight monthly drop — and durable goods orders fell 1 percent in November.
Floor traders, as they do every year on Christmas Eve and New Year's Eve, gathered for a moment at the New York Stock Exchange to sing "Wait Till the Sun Shines, Nellie." The song is about waiting for the rain to end, and the Big Board tradition has roots going back to the Great Depression.
Wednesday's stock moves were considered largely inconsequential in the grand scheme of things. Trading volumes were extremely low ahead of Christmas, and the markets closed early Wednesday at 1 p.m. Eastern time. And with only four trading days left in 2008, most buying and selling appeared to be investors trying to dress up their portfolios (一组投资) after a year of unprecedented market turmoil.
The Dow Jones industrial average rose 48.99, or 0.58 percent, to 8,468.48, after falling for five straight sessions. The blue-chip (独特的，值钱的) index is well off its November lows, but is still down for the typically strong month of December.
Broader stock indicators also gained. The Standard & Poor's 500 index futures rose 4.99, or 0.58 percent, to 868.15, and the Nasdaq composite index rose 3.36, or 0.22 percent, to 1,524.90.
Advancing issues outnumbered decliners by about 3 to 2 on the New York Stock Exchange, where consolidated volume amounted to 1.4 billion shares.
Bond prices, like stocks, were little changed. The yield on the benchmark 10-year Treasury note rose modestly to 2.19 percent from 2.18 percent late Tuesday.
The dollar was mixed against other major currencies. Gold prices rose.
Light, sweet crude for February delivery fell $3.63 to settle at $35.35 a barrel on the New York Mercantiles Exchange. The Nymex, like the stock and bond markets, will be closed on Thursday and re-open on Friday.
Markets overseas declined. Japan's Nikkei stock average fell 2.37 percent, and Hong Kong's Hang Seng index fell 0.26 percent. Britain's FTSE 100 fell 0.93 percent and France's CAC-40 fell 0.39 percent. Germany's stock market was closed.
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On the Net:
New York Stock Exchange: http://www.nyse.com
Nasdaq Stock Market: http://www.nasdaq.com