Stocks Finish Holiday-Shortened Trading Session Mixed - U.S. Commentary

(RTTNews) - With many traders away from their desks before Christmas, stocks showed a lack of direction throughout the abbreviated trading session on Thursday. The major averages spent the day bouncing back and forth across the unchanged line.

The major averages eventually ended the session mixed. While the Nasdaq inched up 2.56 points or 0.1 percent to 5,048.49, the Dow fell 50.44 points or 0.3 percent to 17,552.17 and the S&P 500 dipped 3.30 points or 0.2 percent to 2,060.99.

Despite the mixed performance on the day, the major averages all moved notably higher for the week. The S&P 500 jumped by 2.8 percent, while the Dow and the Nasdaq both surged up by 2.5 percent.

The choppy trading on Wall Street came as many traders looked to get a head start on the upcoming three-day weekend, as the markets closed earlier than usual.

The markets closed at 1 pm ET this afternoon in honor of Christmas Eve and remain closed for all of Christmas Day on Friday.

Traders largely shrugged off a Labor Department report showing that initial jobless claims fell by more than expected in the week ended December 19th.

The report said initial jobless claims dipped to 267,000, a decrease of 5,000 from the previous week's revised level of 272,000.

Economists had expected jobless claims to edge down to 270,000 from the 271,000 originally reported for the previous week.

Most of the major sectors showed only modest moves on the day, contributing to the lackluster performance by the broader markets.

Gold stocks saw substantial strength, however, with the NYSE Arca Gold Bugs Index jumping by 2.6 percent. The strength in the sector came as gold for February delivery climbed $7.60 to $1,075.90 an ounce.

Biotechnology and airline stocks also moved to the upside, while weakness was visible among steel and energy stocks.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance in light trading on Thursday. Japan's Nikkei 225 Index fell by 0.5 percent, while Hong Kong's Hang Seng Index rose by 0.4 percent.

The major European markets also finished the day mixed, with the German markets closed on the day. While the U.K.'s FTSE 100 Index crept up by 0.2 percent, the French CAC 40 Index edged down by 0.2 percent.

In the bond market, treasuries have regained some ground after closing lower in the two previous sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, has fallen by 2.1 basis points to 2.243 percent.

Following the long weekend, next week's trading may remain somewhat subdued ahead of New Year's Eve and the New Year's Day holiday.

Trading may be impacted by reaction to reports on consumer confidence, pending home sales, and Chicago-area business activity.