Wall St. closes mostly flat, but Dow hits record

NEW YORK Mon Dec 30, 2013 5:22pm EST

A trader is reflected in a screen as he works on the floor of the New York Stock exchange in New York, December 27, 2013. REUTERS/Carlo Allegri

A trader is reflected in a screen as he works on the floor of the New York Stock exchange in New York, December 27, 2013.

Credit: Reuters/Carlo Allegri

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Mon, Dec 30 2013

NEW YORK (Reuters) - Stocks closed mostly flat on Monday, with the Dow edging up to another record closing high and the S&P 500 index's advance stalling in response to light trading volume and weaker-than-forecast housing data.

The benchmark S&P 500 .SPX had climbed 3.7 percent over the previous two weeks, the index's best fortnight since July. The gains came after mounting signs that the economy was gaining strength, leading the Federal Reserve to announce that it will scale back its stimulus.

The S&P 500 has soared 29.1 percent this year and is on track for its best year since 1997, powered largely by the central bank's stimulus measures. The Dow .DJI has jumped 25.9 percent and the Nasdaq .IXIC has surged 37.6 percent this year.

Volume continued to be light during the holiday season, with about 4 billion shares traded on U.S. exchanges, below the 6 billion average so far this month, according to data from BATS Global Markets. The U.S. stock market will be closed on Wednesday for New Year's Day.

"It's hard to imagine anyone would jeopardize their gains with this little time left on the clock," said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago.

Trading was in an unusually narrow range on Monday, with the S&P 500 moving only 3.7 points between its high and low over the session, marking its tightest trading range since December 2010. The Dow, meanwhile, moved just 27.5 points, marking its narrowest trading range since February 2007.

The National Association of Realtors said its pending home sales index, based on contracts signed last month, rose 0.2 percent in November, below expectations of a 1 percent rise.

The Dow Jones industrial average .DJI rose 25.88 points, or 0.16 percent, to end at 16,504.29, a record close. The Standard & Poor's 500 Index .SPX dipped just 0.33 of a point, or 0.02 percent, to finish at 1,841.07. The Nasdaq Composite Index .IXIC declined 2.40 points, or 0.06 percent, to close at 4,154.20.

About 47 percent of stocks traded on the New York Stock Exchange closed higher on the day, while 45 percent of Nasdaq-listed shares ended in positive territory.

"I wish I had extended my vacation, is the only thing going through my head because volume is just anemic," said Sam Ginzburg, head of trading at First New York Securities in New York. He added that the thin holiday volume could inject "a little bit of added volatility in the tape."

Twitter Inc (TWTR.N), among the most actively traded stocks on the New York Stock Exchange, continued its dive on Monday, falling 5.1 percent to close at $60.51. Monday's drop followed a 13 percent slide on Friday from its all-time closing high of $73.31 on Thursday.

Social networking company Facebook Inc. (FB.O), meanwhile, was the S&P 500's second-worst performer. The stock fell 3.12 percent to close at $53.71.

Walt Disney Co (DIS.N) gained 2.5 percent to $76.23 and ranked as the best performer in both the Dow and the S&P 500 after Guggenheim raised its rating on the media conglomerate's stock to "buy" from "neutral" and raised its target price to $87.

Cooper Tire & Rubber Co (CTB.N) rose 5.4 percent to $24.20 - recovering from earlier losses - after the company said it was not going ahead with a $2.5 billion merger with India's Apollo Tyres Ltd (APLO.NS).

Shares of Crocs Inc (CROX.O) shot up 21.1 percent to close at $16.14 following news that private equity firm Blackstone Group LP (BX.N) was investing $200 million in a 13 percent stake in the shoemaker.

Trina Solar Ltd (TSL.N) climbed 6.5 percent to $14.01 after the company signed an agreement to develop a solar power plant in China.

(Additional reporting by Curtis Skinner and Chuck Mikolajczak; Editing by Bernadette Baum, Kenneth Barry and Jan Paschal)

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Comments (2)
zoinkers123 wrote:
Oh, for the love of god. Everyday there are multiple articles predicting and/or offering proof of the impending collapse or the signs of recovery. This one is about Wall Street and housing expectations not being met. Here’s what you can do: invest in free education and mental healthcare for all US citizens. Then you can watch the market take off because the dumbazzes in the US will be smart enough to get good jobs, and buy houses, and start new businesses, and bring factories back to the US. Plus we all know the market has only been performing so high because of the Fed money, which is coming to an end soon. It’ll be interesting times. There is still so much fundamentally broken with the US system, but ok sure things appear to be picking back up, so what if everyday is going to be 50 steps forward, 49 steps backwards…?

Dec 30, 2013 1:20pm EST  --  Report as abuse
Afrodo wrote:
This week’s action is “the lull-before-the storm’
~ The Economy is not gaining strength if the unemployment filings’ 4 week moving average is creeping higher. ~ More-over, earlier this month Dr. Bernanke hinted the slowing of the economy, when he projected GDP to grow by half the rate of Q3.. ~ More from the grapevine: 12% of $ 1 Trillion= 120Billion; what are the student loans in default. ~1.2 million unemploy-lads lost their benefits

Dec 30, 2013 7:53pm EST  --  Report as abuse
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