YAHOO [BRIEFING.COM]: Light
news flow and a poor turnout left stocks to trade in lackluster fashion for
most of the session, but some late pressure caused stocks to close at session
lows and conclude the year on a weak note. Still, stocks settled only slightly
below their 52-week highs with strong gains for the year.
As has been the case all week,
participants had few cues for trade this session. Of the few headlines there
were, little reaction was made.
The latest dose of data
featured initial jobless claims for the week ending December 26. Initial claims
fell 22,000 to 432,000, which is less than the 460,000 initial claims that had
been expected. It also marked the lowest tally in more than 15 months. However,
the dip did come during the week of Christmas.
Meanwhile, continuing claims
came in at 4.98 million. That was lower than expected and below 5.00 million
for the first time since February.
Participants shrugged off the
better-than-expected jobless claims numbers, but gave focus to the dollar,
which had offered early support for stocks with a 0.6% overnight loss against
competing currencies, but later weighed on stocks as it recovered to finish
with a 0.1% gain. The Dollar Index closed the month with a 4.1% gain, but
finished the year with a 4.1% loss.
The dollar's doldrums this
year helped prop up commodities prices and gave the CRB Commodity Index a 23.5%
annual gain. The CRB closed this session with a 0.1% loss, though.
Still, the reflation trade
that followed the global economic slowdown earlier this year helped make
materials stocks some of this year's best performers -- the materials sector
booked a gain of 45.2% this year, although it shed 1.3% this session.
Of the major sectors, tech was
the best performer in 2009. Though it quietly shed 1.1% in its latest outing,
it still finished the year with a 59.9% gain. Large-cap tech issues helped the
Nasdaq Composite advance 43.9% this year to outperform its counterparts with
relative ease; the S&P 500 finished the year with a 23.5% gain, while the
Dow finished 2009 18.8% higher.
Financials showed strength for
most of this session, but buckled when the broader market took a dive in the
final hour of trade. They fell 0.4% this session, but were up 14.8% for the
year. Though its yearly gain wasn't as impressive as what was accomplished by
other sectors, financials finished the year up approximately 250% from their
March low.
That spike is attributable to
bank stocks, which rallied after liquidity fears faded. Many widely-held bank
stocks had fallen below $1 per share during the depths that the stock market
saw, but they have since climbed exponentially.
With many market participants
looking to lock in such gains, trading volume has been light for the past
couple of weeks. End of year holidays have also led to light volume as many
trading desks have become lightly staffed.
Since the stock market is
closed tomorrow, January 1, to observe New Year's Day, such was also the case
this session. Fewer than 700 million shares traded hands on the NYSE this
session. That's less than half of this year's average single-session trading
volume, which stands close to 1.4 billion shares.
Advancing Sectors: (None)
Declining Sectors: Utilities (-1.5%), Industrials (-1.3%),
Materials (-1.3%), Health Care (-1.2%), Consumer Staples (-1.1%), Tech (-1.1%),
Telecom (-1.0%), Consumer Discretionary (-1.0%), Energy (-0.9%), Financials
(-0.4%)DJ30 -120.46 NASDAQ -22.13 NQ100 -1.0% R2K -1.3% SP400 -1.3% SP500
-11.32 NASDAQ Adv/Vol/Dec 1026/1.25 bln/1730 NYSE Adv/Vol/Dec 994/680 mln/2018