Posted on: Wednesday, December 29, 2004
Wall Street reflects new consumer confidence
By Michael J. Martinez
Associated Press
NEW YORK — Wall Street resumed its year-end rally yesterday, bolstered by a new report that showed consumer confidence had jumped sharply in recent weeks. All three major indexes reached new multiyear highs in light holiday-week trading.
While the dollar reached another low against the euro, falling crude oil futures helped boost investor sentiment and reverse Monday's losses. Oil prices stabilized after falling 7 percent on Monday. A barrel of light crude settled at $41.77, up 45 cents.
"The consumer confidence figure was very telling, confirming what we've seen in consumer spending and job growth," said Kevin Caron, market strategist for Ryan, Beck & Co. "And we're seeing energy prices cooperate nicely as well."
Stocks recovered from Monday's dip, when investors worried about the economic impact of the Asian earthquake disaster. Analysts said that while events may cause more pauses in the market's recent rally, the overall upward trend in stocks likely would continue through January.
Advancing issues outweighed decliners by nearly 3 to 1 on the New York Stock Exchange, where preliminary consolidated volume came to 1.25 billion shares, compared with 1.17 billion on Monday.
Investors welcomed the latest reading of the Conference Board consumer confidence index, which rose to 102.3 in December from 92.6 in November. Wall Street had expected a reading of 94. In a trading week that traditionally carries little news, the better-than-expected reading had a stronger-than-usual influence on trading.
