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U.S. stocks closed higher for the third consecutive day on Thursday, with the S&P 500 hitting a record high ahead of a long Christmas holiday weekend as investors shed fears and felt more optimistic that the Omicron variant of the coronavirus won’t affect global economy growth. All the three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.6% or 196.67 points to close at 35,950.56 points.
The S&P 500 jumped 0.6% or 29.23 points to finish at 4,725.79 points, hitting a new record high. The index also marked its 68th record close of the year. Consumer discretionary, industrial and materials stocks were the biggest gainers.
The Consumer Discretionary Select Sector SPDR (XLY) gained 1.4%, while the Industrials Select Sector SPDR (XLI) advanced 1.2%. The Materials Select Sector SPDR (XLB) increased 1%. Ten of the 11 sectors of the benchmark index ended in negative territory.
The fear-gauge CBOE Volatility Index (VIX) was down 1.53% to 14.15. A total of 8 billion shares were traded on Thursday, lower than the last 20-session average of 11.8 billion. Advancers outnumbered decliners on the NYSE by a 2.40-to-1 ratio. On Nasdaq, a 2.22-to-1 ratio favored advancing issues.
Investors Shed Omicron Fears
Thursday’s gains were primarily broad based, with industrials and technology stocks both gaining as investors felt more optimistic on reports that the Omicron variant of the coronavirus won’t derail global economies. The optimism has now continued for three days after last week saw fears of the virus once again gripping markets.
However, trading volume was low ahead of the long Christmas holiday weekend. Investors also got back some confidence on Thursday after the White House said that it doesn’t have any immediate plans of 2020-style lockdowns to fight the spread of Omicron variant.
On Thursday, investors also were greeted with the news that the Food and Drug Administration (FDA) has given emergency use authorization for Pfizer’s (PFE - Free Report) COVID-19 pill, the first-of-its-kind oral antiviral drug against the coronavirus. Also, FDA also gave approval to Merck and Co, Inc.’s (MRK - Free Report) antiviral pill for the virus on Thursday.
Economic Data
Despite markets going into holiday mood early, a batch of fresh economic data were released on Thursday. The Labor Department said on Thursday that initial jobless claims remained unchanged at 205,000 for the week ended Dec 18. This came in line with analysts’ expectations. Earlier this month, weekly claims had dropped to a 52-year low.
The four-week moving average climbed to 206,250, an increase of 2,750, from the previous week’s revised average. The average for the previous week was revised down by 250 from 203,750 to 203,500.
However, continuing claims decreased by 8,000 to 1,859,000. The previous week's numbers were revised up by 22,000 from 1,845,000 to 1,867,000. This is also the lowest level for continuing claims since Mar 14, 2020. The 4-week moving average came in at 1,919,750, a decline of 45,000 from the previous week's revised average.
Weekly Roundup
All the three major indexes recorded gains for the week. The Dow ended up 1.6%, while the S&P 500 climbed 2.3%. The Nasdaq jumped almost 3.2% for the week.
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Stock Market News for Dec 27, 2021
U.S. stocks closed higher for the third consecutive day on Thursday, with the S&P 500 hitting a record high ahead of a long Christmas holiday weekend as investors shed fears and felt more optimistic that the Omicron variant of the coronavirus won’t affect global economy growth. All the three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.6% or 196.67 points to close at 35,950.56 points.
The S&P 500 jumped 0.6% or 29.23 points to finish at 4,725.79 points, hitting a new record high. The index also marked its 68th record close of the year. Consumer discretionary, industrial and materials stocks were the biggest gainers.
The Consumer Discretionary Select Sector SPDR (XLY) gained 1.4%, while the Industrials Select Sector SPDR (XLI) advanced 1.2%. The Materials Select Sector SPDR (XLB) increased 1%. Ten of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq climbed 0.9% or 131.48 points to end at 15,653.37 points. Shares of Microsoft Corporation (MSFT - Free Report) gained 0.5%, while NVIDIA Corporation (NVDA - Free Report) gained 0.8%. NVIDIA has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The fear-gauge CBOE Volatility Index (VIX) was down 1.53% to 14.15. A total of 8 billion shares were traded on Thursday, lower than the last 20-session average of 11.8 billion. Advancers outnumbered decliners on the NYSE by a 2.40-to-1 ratio. On Nasdaq, a 2.22-to-1 ratio favored advancing issues.
Investors Shed Omicron Fears
Thursday’s gains were primarily broad based, with industrials and technology stocks both gaining as investors felt more optimistic on reports that the Omicron variant of the coronavirus won’t derail global economies. The optimism has now continued for three days after last week saw fears of the virus once again gripping markets.
However, trading volume was low ahead of the long Christmas holiday weekend. Investors also got back some confidence on Thursday after the White House said that it doesn’t have any immediate plans of 2020-style lockdowns to fight the spread of Omicron variant.
On Thursday, investors also were greeted with the news that the Food and Drug Administration (FDA) has given emergency use authorization for Pfizer’s (PFE - Free Report) COVID-19 pill, the first-of-its-kind oral antiviral drug against the coronavirus. Also, FDA also gave approval to Merck and Co, Inc.’s (MRK - Free Report) antiviral pill for the virus on Thursday.
Economic Data
Despite markets going into holiday mood early, a batch of fresh economic data were released on Thursday. The Labor Department said on Thursday that initial jobless claims remained unchanged at 205,000 for the week ended Dec 18. This came in line with analysts’ expectations. Earlier this month, weekly claims had dropped to a 52-year low.
The four-week moving average climbed to 206,250, an increase of 2,750, from the previous week’s revised average. The average for the previous week was revised down by 250 from 203,750 to 203,500.
However, continuing claims decreased by 8,000 to 1,859,000. The previous week's numbers were revised up by 22,000 from 1,845,000 to 1,867,000. This is also the lowest level for continuing claims since Mar 14, 2020. The 4-week moving average came in at 1,919,750, a decline of 45,000 from the previous week's revised average.
Weekly Roundup
All the three major indexes recorded gains for the week. The Dow ended up 1.6%, while the S&P 500 climbed 2.3%. The Nasdaq jumped almost 3.2% for the week.