Wall Street stocks finished the first trading day of the new year on Friday little changed following lackluster US economic data and with many market participants still on holiday.
The Dow Jones Industrial Average advanced 9.92 points (0.06 percent) to 17,832.99 in the session, while the broad-based S&P 500 slipped 0.70 (0.03 percent) to 2,058.20 and the tech-rich NASDAQ Composite Index fell 9.24 (0.20 percent) to 4,726.81.
All three indices spent much of the year’s first session in the red, following reports that showed lower US construction spending in November and weaker manufacturing activity last month.
However, stocks strengthened somewhat in the last 30 minutes of trading, enabling the Dow to notch a small gain and cutting losses in the other two indices. Analysts said volume was light after markets closed on Thursday for New Year’s Day.
“The year really starts on Monday,” BTIG chief global strategist Dan Greenhaus said.
The S&P 500 rose 11.4 percent last year, marking the third straight year with a double-digit gain.
Key challenges to recording more gains this year include weak growth in Europe and emerging economies; the hit from sharply lower oil prices to Russia and other petroleum exporters; and the blow from any shift in the US Federal Reserve’s policy of ultra-low interest rates.
Rockwell Global Capital LLC chief market economist Peter Cardillo predicted that this year would be another good year for US stocks, but one that is also more volatile.
“We’re going to see another bull run,” he said. “However, we will see more corrections and the corrections will be steeper than they were in 2014.”
Drugstore chain Rite Aid Corp rose 1.5 percent on Friday after reporting that same-store sales increased 5.3 percent last month, compared with the same period a year ago.
Linn Energy LLC rose 12.30 percent as it announced that the Blackstone Group LP will finance drilling programs for the oil and gas firm in exchange for a payout on successful wells.
Linn also cut its capital spending budget for this year by 53 percent and said it would trim its dividend to US$1.25 per share from US$2.90 due to the drop in oil prices.
Bond prices rose on Friday. The yield on the 10-year US Treasury fell to 2.12 percent from 2.17 percent on Wednesday, while the 30-year dropped to 2.69 percent from 2.75 percent.
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