By Victor Reklaitis, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks stepped higher on
Wednesday, with the S&P 500 and Dow Jones Industrial Average
achieving record closes, after better-than-expected reports on
consumer sentiment, employment and Chicago-area business
conditions.
The S&P 500 (SPX) gained 4.48 points, or nearly 0.3%, to
finish at 1,807.23, topping Friday's record close. Hewlett Packard
Co.(HPQ) fared best among S&P 500 components, jumping 9% after
its stronger-than-anticipated quarterly results late Tuesday
The Dow (DJI) rose 24.53 points, or almost 0.2%, to end at
16,097.33 for its fifth straight record close, while the Nasdaq
Composite (RIXF) climbed 27 points, or 0.7%, to finish at 4,044.75.
The Nasdaq moved further above 4,000 after closing above that
milestone level for the first time in 13 years on Tuesday.
In Wednesday's pre-holiday deluge of economic data, the
consumer-sentiment report was the most critical news, according to
Kristina Hooper, a U.S. investment strategist at Allianz Global
Investors.
"The consumer is in the recovery room," Hooper told MarketWatch.
She said the consumer was "dramatically damaged by the shutdown and
the debt-ceiling debate," but most of the damage from that
government dysfunction appears to have been short-term.
On Tuesday, stocks finished slightly higher, with the Nasdaq
scoring its first close above 4,000 since September 2000.
* Today's movers & shakers: Hewlett Packard surged 9% for
its best day since May. Infoblox Inc., a data-center technology
company, slid 29% following its weaker-than-expected outlook late
Tuesday. Apple Inc. gained for the third day, closing at its
highest since Jan. 2. Read more in the Movers & Shakers
column.
* Trading volumes were below average ahead of the Thanksgiving
and Hanukkah holidays. For both the NYSE and Nasdaq, composite
volume was 78% of its 30-day average, according to FactSet
data.
* Today's market-moving news: Shortly after the opening bell,
the Chicago purchasing managers index came in at 63 for November,
falling from October's level but better than expectations. In
addition, a gauge of consumer sentiment rose to a final reading of
75.1 in November, topping forecasts. Before the market open, the
Labor Department said jobless claims fell to 316,000 in the week
ended Nov. 23, better than forecasts. At the same time, the
Commerce Department said durable-goods orders dropped 2% in
October, a smaller drop than the 2.2% expected by economists
surveyed by MarketWatch. But many details of the durable-goods
report signaled softness.
* The buzz: A Santa Claus rally could be coming to town,
according to some data crunching by S&P Capital IQ. For years
like this one, when the S&P 500 is up 20% or more in the first
11 months, the December gain has been 1.8%, with an increase 73% of
the time, the research firm says. Meanwhile, MarketWatch columnist
Mark Hulbert says the stock market today is less overheated than it
was in December 1999, the first time the Nasdaq traded above 4,000.
The Nasdaq's climb reflects vast economic shifts since the late
1990s, says another take on that milestone.
* Other markets:Chinese stocks finished with gains on hopes of
financial reforms, while European stocks closed higher after
better-than-expected consumer-confidence data from Germany. The
dollar gained, while gold and oil lost ground.
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