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S&P 500 notches first gain in 2014

English.news.cn   2014-01-08 05:08:22            

NEW YORK, Jan. 7 (Xinhua) -- U.S. stocks rebounded Tuesday, with the S&P 500 closing with the first advance in 2014, as data showed the U.S. trade gap narrowed in November.

The Dow Jones Industrial Average rallied 105.84 points, or 0.64 percent, to 16,530.94. The S&P 500 gained 11.11 points, or 0.61 percent, to 1,837.88. The Nasdaq Composite Index jumped 39.50 points, or 0.96 percent, to 4,153.18.

The rally came after the S&P 500 and the Nasdaq declined in the first three trading sessions of the New Year on profit taking.

Wall Street seemed to renew confidence somewhat on encouraging data and positive comments from a pair of top Federal Reserve officials.

The Commerce Department said Tuesday U.S. international trade deficit in goods and services dropped to 34.3 billion U.S. dollars in November from the revised 39.3 billion dollars in October, as exports increased while imports declined.

"After eliminating the influence of prices, the trade deficit narrowed to a five-month low, indicating that trade will boost fourth quarter gross domestic product," said Jay Morelock, an economist at FTN Financial.

Before the U.S. stock market opened, Boson Fed President Eric Rosengren said long-term labor market scars, which resulted from a very slow recovery, led him to believe that "the Federal Reserve should remain highly accommodative and wind down our extraordinary programs only very gradually."

Echoing Rosengren's remarks, San Francisco Fed President John Williams said later in the day that the U.S. central bank is likely going to end its quantitative easing this year, while predicting that interest rates would maintain near zero for the " foreseeable future."

In corporate news, shares of JPMorgan Chase & Co., one of the biggest laggards of the Dow, fell 1.15 percent to 58.32 dollars a share, after the bank reportedly has agreed to pay 1.7 billion dollars for victims of Bernard Madoff's Ponzi scheme.

Investors are still awaiting a string of major events later this week, including the release of the Fed's minutes for its December policy meeting, U.S. nonfarm payroll report and the fourth-quarter corporate earnings.

On other markets, the U.S. dollar gained against most major currencies on the narrowed U.S. trade deficit data.

In late New York trading, the euro slipped to 1.3618 dollars from 1.3635 dollars of the previous session, the greenback bought 104.48 yen, higher than 104.28 yen of the previous session.

Oil prices rose as traders expected that extremely cold weather in the United States will boost fuel demand.

Light, sweet crude for February delivery edged up 24 cents to settle at 93.67 dollars a barrel on the New York Mercantile Exchange, while Brent crude for February delivery gained 62 cents to close at 107.35 dollars a barrel.

Gold futures on the COMEX division of the New York Mercantile Exchange closed below 1,230 dollars per ounce on a stronger dollar.

The most active gold contract for February delivery dropped 8.4 dollars, or 0.68 percent, to settle at 1,229.6 dollars per ounce.   

Editor: Luan
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