Barchart Stock Market Wrap – January 2, 2009

Commentary:

9,000. A number that hasn’t been with the Dow Jones Industrial Averages since November 5, was achieved on the first trading day of 2009. Despite a light volume day and more poor economic news, the stock market was optimistic as the new year began.

The market shrugged off a report by the Institute for Supply Management that said that manufacturing activity in December fell to 32.4 (versus 36.2 in November), its lowest reading in 28 years.

The Dow Jones Industrials closed up 258 points to close at 9,035 for a gain of 2.9% today. The S&P 500 Index was also higher closing up 29 points or 3.2%.

February Comex gold futures closed lower as the dollar gained against the Euro and Japanese yen. Strength in the dollar removed the attractiveness of gold as a safe haven.
 

The spot February crude oil futures rose $1.73 to close at $46.33 on concerns over the war in Gaza and on Russia’s shutting down natural gas shipments to the Ukraine.

The March Dollar Index gained 65 points, on the higher stock market and an increase in treasury yields.

Reports Due Monday:

Unknown Time – Navistar International (NAV) releases earnings (expected at 82 cents).

Market Momentum: There were 2,580 advancing issues on the NYSE, with 601 declining issues. On the NASDAQ, there were 2,057 advancing issues with 892 declining.

New 52-week Highs: There were 31 issues reaching 52-week highs between the NYSE and NASDAQ

New 52-week Lows: There were 17 new 52-week lows on the NYSE and NASDAQ.