U.S. Stocks Finish Choppy Trading Day Modestly Higher

(RTTNews) - Stocks showed a lack of direction throughout the trading session on Wednesday, with the major averages spending the day bouncing back and forth across the unchanged line.

Despite the choppy trading, the Dow reached a new record closing high, and the Nasdaq and the S&P 500 ended the day at their best closing levels in almost two years.

The major averages eventually finished the day modestly higher. While the Dow rose 111.19 points or 0.3 percent to37,656.52, the Nasdaq edged up 24.60 points or 0.2 percent to 15,099.18 and the S&P 500 inched up 6.83 points or 0.1 percent to 4,781.58.

The uptick by stocks came as treasury yields moved notably lower over the course of the session, with the yield on the benchmark ten-year note falling to its lowest level in five months.

Treasury yield saw further downside after the Treasury Department revealed this month's auction of $58 billion worth of five-year notes attracted average demand.

The decrease in treasury yields has added to optimism about the outlook for interest rates, generating renewed buying interest on Wall Street.

However, traders seemed somewhat reluctant to continue buying stocks following the recent strength in the markets.

At the same time, traders also appeared hesitant to cash in on the recent gains amid concerns about missing out on further upside.

Sector News

Most of the major sectors showed only modest moves on the day, contributing to the lackluster close by the broader markets.

Tobacco stocks showed a strong move to the upside, however, with the NYSE Arca Tobacco Index climbing by 1.2 percent to its best closing level in well over seven months.

A sharp increase by the price of gold also contributed to strength among gold stocks, as reflected by the 1.1 percent gain posted by the NYSE Arca Gold Bugs Index. The index reached a five-month closing high.

Biotechnology and pharmaceutical stocks also saw some strength on the day, while energy stocks gave back ground along with the price of crude oil.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 Index jumped by 1.1 percent, while Hong Kong's Hang Seng Index surged by 1.7 percent.

The major European markets also moved to the upside on the day. While the U.K.'s FTSE 100 Index climbed by 0.4 percent, the German DAX Index rose by 0.2 percent and the French CAC 40 Index closed just above the unchanged line.

In the bond market, treasuries moved notably higher over the course of the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, tumbled by 9.7 basis points to a five-month closing low of 3.789 percent.

Looking Ahead

Reports on weekly jobless claims and pending home sales may attract some attention on Thursday, although trading activity is likely to remain subdued ahead of the New Year's weekend.