Posted on: Friday, December 31, 2004
End-of-year maneuvers dominate lackluster day
By Michael J. Martinez
Associated Press
NEW YORK — Stocks were mixed in a listless session yesterday as investors collected profits for a second straight day despite an unexpected drop in unemployment claims.
Despite that news, investors yesterday sold off large-cap stocks and booked profits before the year's end. The major indexes were nearly flat most of the session, and trading was light as many investors took time off for New Year's.
"Most of the big money left a week ago, and all you're seeing now is a little speculation and some tax-planning moves," said Will Gourd, investment advisor at J.P. Morgan Private Bank. "But the economic data looks good, energy prices are stabilizing, yesterday notwithstanding, and things look good for next week when everybody comes back."
The Dow Jones industrial average fell 28.89, or 0.27 percent, to 10,800.30. The Standard & Poor's 500 index was up 0.10, or 0.01 percent, and the Nasdaq composite gained 1.34, or 0.06 percent, to 2,178.34. Advancing issues outnumbered decliners by about 5 to 4 on the New York Stock Exchange, on volume of 1.08 billion shares, compared with 1.2 billion on Wednesday.
Analysts said the market is in good shape to further its post-election gains in January, at least until first-quarter earnings season in the middle of the month.
"I think you've got maybe another 3 or 4 percent (increase) to go yet in January," said Russ Koesterich, U.S. equity strategist at State Street Corp. in Boston. "After that, you'll see interest rates rising again and it could get tougher. But for now, we're looking pretty good."
The Labor Department report that first-time jobless claims fell by 5,000 to 326,000 last week shows continued strength in the nation's labor market.
