Stocks rise as holiday season opens
Wall Street finished the week with moderate gains Friday, extending a November rally in light post-Thanksgiving trading amid signs of a strong start to the busy holiday shopping season.
The major indexes closed out their fifth straight winning week and pushed past four-year highs. Share prices continued their monthlong advance, fueled by an improving economic backdrop and high hopes for solid retail sales that helped cast aside fears of a downturn.
A spirited beginning to the critical holiday sales period stoked investor optimism Friday, traditionally one of the busiest shopping days of the year as retailers lure customers with bargains and deep discounts. Early reports suggest stores will be more crowded than last year.
The markets were closed Thursday for Thanksgiving, and logged a shortened session on Friday. Volume was light with many traders out of the office for a second day.
The Dow Jones industrial average gained 15.53, or 0.14 percent, to 10,931.62.
Broader stock indicators were also higher. The Standard & Poor’s 500 index was up 2.64, or 0.21 percent, at 1,268.25, and the Nasdaq composite index rose 3.03, or 0.13 percent, to 2,263.01.
Bonds advanced, with the yield on the 10-year Treasury note sliding to 4.43 percent from 4.47 percent late Wednesday. The dollar was mixed against other major currencies in European trading, and gold prices were little changed.
Many investors are anxiously awaiting holiday sales figures for indications of how consumers have handled the recent spike in gasoline prices. Wall Street found some encouragement earlier this week, when the University of Michigan reported a better-than-expected jump in consumer confidence.
But a raft of key economic reports are due next week, including data on economic growth, personal spending and employment. While positive data will likely bolster Wall Street’s year-end rally, any bad news could spook a jumpy market and cause it to surrender this month’s gains.
For the week, the Dow gained 1.54 percent, the S&P 500 advanced 1.6 percent and the Nasdaq rose 1.61 percent. So far this year, the Dow is up 1.38 percent, the S&P 500 has grown 4.03 percent and the Nasdaq is 4.65 percent higher.
Advancing issues led decliners by 3 to 2 on the New York Stock Exchange, where volume came to 542.7 million shares. Light volume has persisted all week ahead of Thanksgiving.
The Russell 2000 index of smaller companies rose 0.44, or 0.06 percent, to 683.58.
Overseas, Japan’s Nikkei stock average rose 0.28 percent. Britain’s FTSE 100 gained 0.23 percent, Germany’s DAX index added 0.12 percent, and France’s CAC-40 was higher by 0.3 percent.