By Anora Mahmudova and Barbara Kollmeyer, MarketWatch Small
stocks rallied; Russell 2000 gains 1.1%
NEW YORK (MarketWatch) -- The U.S. stock market finished
Thursday's mostly subdued trading session slightly higher. The
incremental gains on the S&P 500 and the Dow Jones Industrial
Average, which came amidst thin trading volumes, were enough to
send the indexes deeper into record territory.
The S&P 500 (SPX) closed 4 points, or 0.2%, higher at
2,052.75, the 44th record close this year. The Dow Jones Industrial
Average (DJI) added 33.27 points, or 0.2%, to 17,719.00, logging
its 27th record close in 2014.
Diving deeper into Thursday's trading action reveals, small
companies outperformed the large, while gains in energy and
technology sectors outweighed losses in healthcare and consumer
staples.
The Nasdaq Composite (RIXF) ended the day up 26.16 points, or
0.6%, at 4,701.87, while the Russell 2000 rallied, adding 1.1% to
1,170.80.
Kim Forrest, portfolio manager and senior equity analyst at Fort
Pitt Capital Group, said that the stock market is very
representative of the current economy.
"Investors see the latest data as confirmation that the economy
is getting better, but not fast enough. At this point, if we see a
big rally into the year-end, it will only be at the expense of
future gains," Forrest said.
Ahead of the opening bell, stock futures were under pressure
after a batch of economic indicators from Europe and China showed
weakness. However, markets were able to shake off those concerns
following some upbeat data as well as better-than-expected earnings
from retailers.
Among Tuesday's positive economic releases was a rise in
existing home sales, a jump in the Philly Fed index and weekly
jobless claims remaining below 300,000 for the 10th straight
week.
Consumer prices were flat in October, while U.S. November Markit
flash PMI was the weakest since January, declining for a third
straight month.
Goldman's call for S&P 500 and data on tap: The investment
bank said in its equity outlook for 2015 that the S&P 500
should rise to 2,100 by the end of that year, making for a "modest"
5% total return. It added that the market reaction to the first
Federal Reserve rate hike in six years should be "benign."
But Goldman also said 2015 will be challenging for active equity
managers, as low volatility is likely to remain a defining theme.
The S&P 500 will rise to 2,150 by mid-year, but then slip
during the second half, it forecast.
(Also see: Consumer spending to benefit from gas that is cheaper
than milk
http://www.marketwatch.com/story/consumer-spending-to-benefit-from-gas-thats-cheaper-than-milk-2014-11-19.)
Stocks in focus: Best Buy Co.(BBY) shares jumped 7% after
earnings beat forecasts.
Dollar Tree Inc. (DLTR) shares rose 5.2% after the
discount-retailer beat third-quarter sales and profit expectations,
posting its best sales figures since 2011.
Salesforce.com(CRM) fell 4.5% after the cloud-computing
company's weak outlook overshadowed its slight beat on the third
quarter.
Caesars Entertainment Corp.(CZR) soared 5.4% after Bloomberg
News reported the casino operator plans to turn its largest unit
into a real-estate investment trust.
For more about today's movers, read our regular column on Movers
and Shakers
In other markets: Markit reported that the flash November
reading for the composite purchasing managers index in the eurozone
dropped to 51.4, its lowest level in 16 months. After the release,
European stocks tumbled, as did the euro (EURUSD) versus the
dollar.
The data confirms that the eurozone is still in rough shape.
Germany's own November preliminary manufacturing survey came in at
50.0, versus an expected 51.5. Stock futures were also dealing with
weakness in a similar gauge out of China, which showed factory
activity declined in November, after gaining in the prior month.
PMI data out of Japan was also weak.
The dollar(USDJPY) eased against the Japanese yen at Yen118. The
Nikkei 225 index closed flat. Gold (GCZ4) drifted lower, while oil
(CLZ4) rose more than 1% on hopes that the global cartel of oil
exporters will move to tighten the market.
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