Alexa

Confidence in economy bolsters Dow and Nasdaq

Confidence in economy bolsters Dow and Nasdaq

U.S. stocks closed higher Tuesday, after investors made a beeline for shares that dropped to attractive prices during last week's sell-off, although Amazon.com Inc. and other retailers were pressured by concerns about the strength of holiday-shopping sales.
The Dow Jones Industrial Average closed up 64.41 points at 12,407.63, as Walt Disney Co. rose 1 percent to US$34.53 and General Motors Corp. gained 1.2 percent to US$29.77.
The S&P 500 Index ended up more than 6.14 points at 1,416.90 and the Nasdaq Composite Index was 12.33 points higher to 2,413.51.
There were 600 million shares traded on the New York Stock Exchange, with about two stocks gaining in price for every one share under pressure.
"It's interesting to see that the bias is to the upside, with so many people absent," said Mike Holland of the Holland Balanced Fund. "Maybe the recent selling has exhausted itself."
On Friday, stocks closed lower on the day and week. The losses last week contrasted with a sharp rally in the stock market throughout most of the fourth quarter. Much of the rally has been traced to the perception that while U.S. growth is slowing, the economy will enjoy a soft landing and the global economy will remain strong. But some investors fear a recession may be in store.
"We've had a huge bull run on the S&P 500, the Dow and the Nasdaq," said Alec Young, equity-market strategist at Standard & Poor's. "But last week we started to see some softer economic data."
"The biggest thing driving the rally was the confidence that the economy would have a soft landing," he said. "If the economic data continue to be mediocre, we may see some more selling. But the market today has an upward bias. Volume is thin and this is exaggerating the gains."
Amazon.com ended off 1.1 percent at US$39.77. The company said the 2006 holiday season was its "best ever."
Microsoft Corp. was in focus following a WSJ.com report that the company is leveraging personal and search information gleaned from its Hotmail e-mail program and its Live Search engine in a worldwide effort to target ads at users of its sites.


Updated : 2020-11-30 19:55 GMT+08:00