BLBG; U.S. Stocks Fluctuate on Economic Data, Slump in Oil Prices
U.S. stocks drifted between gains and losses as better-than-estimated reports on consumer spending and durable goods orders were offset by declines in energy shares as oil slid below $37 a barrel.
Deere & Co., Citigroup Inc. and Abercrombie & Fitch Co. climbed following government data showing bookings for equipment meant to last several years and consumer purchases slumped less than economists’ projections. Occidental Petroleum Corp. and ConocoPhillips paced declines in fuel producers.
The S&P 500 lost less than 0.1 percent to 862.67 at 10:04 a.m. in New York. The Dow Jones Industrial Average climbed 12.27 points, or 0.2 percent, to 8,431.76 The Russell 2000 Index slipped 0.8 percent. Trading on the New York Stock Exchange will end today at 1 p.m., while exchanges in Germany and Italy were closed for the Christmas holiday.
“It would require something unexpected to really jar the market,” said Keith Wirtz, chief investment officer at Fifth Third Asset Management, which manages about $21 billion. “We’re going to finish today and probably Friday fairly quietly. Let’s count that as a Christmas blessing. We’ve had enough excitement this year.”
Christmas Gains
The U.S. stock market historically performs better during the Christmas week, according to Bespoke Investment Group LLC. The Dow average has risen an average 0.7 percent during the holiday season, compared with a 0.1 percent advance for all 4- day periods, data since 1900 from the Harrison, New York-based research firm show.
The S&P 500 is headed for its biggest annual slump since 1931, having dropped 41 percent in 2008, as the collapse of credit markets sent the world’s largest economy into a recession and spurred $1 trillion in losses at financial firms.
Indexes fell yesterday as concern grew that emergency loans won’t save the auto industry, while home prices plunged and the government confirmed the economy shrank the most since 2001 last quarter.
“It is difficult to envisage a stronger economy until confidence is restored,” said Andrew Shard, a fund manager at Invesco Perpetual in Henley-on-Thames, England. “Unfortunately I do not think this is likely to happen for some time. A severe recession has been largely discounted in valuations.”
Stocks in Europe and Asia retreated, sending the MSCI World Index to its fifth straight decline, on concern that deepening recessions in the U.S., U.K. and Japan will snuff out earnings growth.
