Dow Jones 30: Industrials Index

[setravis]

Monday, December 6, 2010...

Overnight U.S. Stock News

•   Dec S&Ps this morning are down -3.00 points. The stock market last Friday sold off on the weak US Nov payrolls report and then recovered after the strong Nov ISM non-manufacturing index was released and finished the day slightly higher: Dow +0.17%, S&P 500 +0.26%, Nasdaq Composite +0.47%. All of the indexes posted 3-week highs.

               
                Bullish factors included (1) the larger-than-expected increase in the Nov ISM non-manufacturing index which expanded at its fastest pace in 6 months (+0.7 to 55.0 versus expectations of +0.5 to 54., (2) strength in commodity and energy producers after a slide in the dollar prompted widespread gains in most commodities with crude oil posting a 25-month high, and (3) the action by Germany's Bundesbank to hike its German GDP forecast to 3.6% for 2010 and 2.0% for 2011, higher than its Jun estimate of 1.9% for this year and 1.4% next year, which bodes well for the sustainability of the global economic recovery.


•   Bearish factors included (1) the smaller-than-expected increase in Nov nonfarm payrolls (+39,000 versus expectations of +145,000), (2) the unexpected increase in the Nov unemployment rate which rose to its highest level in 7 months (+0.2 to 9.8% versus expectations of unchanged at 9.6%), (3) the unexpected decline in Nov manufacturing payrolls which have now fallen for 4 consecutive months (-13,000 versus expectations of +5,000), and (4) concerns that the European sovereign-debt crisis may worsen after Standard & Poor's Ratings Services placed Greece's "BB+" long-term sovereign credit rating on "CreditWatch" with negative implications and placed the long and short-term counterparty credit ratings on Portugal's three largest publicly traded banks, Banco Espirito Santa SA, Banco BPI SA and Banco Comercial Portugues SA on CreditWatch with "negative implications."


•   Citigroup (C) lost 1.1% in pre-market trading due to carry-over weakness from a slide in European banking shares.

[setravis]

Tuesday, December 7, 2010...

Overnight U.S. Stock News

.  Dec S&Ps this morning are up +11.40 points and posted a contract high after President Obama agreed to extend the Bush-era tax cuts. The stock market yesterday traded mostly weaker throughout the day after Fed Chairman Bernanke said the US economy may need more stimulus: Dow -0.17%, S&P 500 -0.13%, Nasdaq Composite +0.13%. The Nasdaq posted a 3-1/2 week high.

                Bearish factors included (1) carry-over weakness from a slide in European stocks on concern the European debt crisis is worsening after Moody's Investors Service cut Hungary's sovereign credit rating two levels to Baa3 with a negative outlook, (2) comments from Fed Chairman Bernanke who said the US economy is barely expanding and that it's possible the Fed may need to increase its asset purchases, and (3) a slump in bank stocks after Nomura Holdings predicted that Bank of America, Morgan Stanley and Citigroup are most at risk of being downgraded by credit-rating companies in early 2011 because of the slow pace of recovery, the threat that banks will have to buy back mortgages from investors, Europe's government debt crisis, shrinking balance sheets and regulatory reform.


                Bullish factors included (1) comments from Fed Chairman Bernanke who said a return to recession "doesn't seem likely" because sectors of the economy such as housing can't become more depressed, (2) strength in technology stocks after Cisco rallied when it was raised to "outperform" from "market perform" by Oppenheimer, (3) gains in commodity producers after metals prices rallied with silver surging to a 30-year high and gold and copper climbing to 3-week highs, (4) the action by Oppenheimer to hike their 2011 forecast for the S&P 500 to 1,325 with earnings per share of $88.50, better than an earlier forecast for the S&P 500 to rise to 1,300 with earnings per share of $84.50, and (5) comments from President Obama who said he was willing to compromise with Republicans on extending Bush-era tax cuts.

Freeport-McMoRan (FCX) gained 2.1% in pre-market trading after copper prices climbed to a 2-1/2 year high.

[setravis]

Wednesday, December 8, 2010...

Overnight U.S. Stock News

•   Dec S&Ps this morning are down -1.60 points. The stock market yesterday opened sharply higher after President Obama agreed to a 2-year extension of the Bush-era tax cuts and then relinquished most of their gains the rest of the day and finished mixed after Treasury yields surged and reports that the SEC widened their insider trading probe: Dow -0.03%, S&P 500 +0.05%, Nasdaq Composite +0.14%. The Nasdaq jumped to a 3-year high, the S&P 500 rallied to a 26-month high and the Dow climbed to a 1-month high.

                Bearish factors included (1) the surge in the yield on the 10-year T-note to a 5-1/4 month high of 3.17%, (2) the action by Scotiabank to cut its equity weighting recommendation to 58% from 68% at the start of last year due to "a sub-par recovery in developed economies, the excessive monetary stimulus campaign in the US, China's tightening bias and Europe's debt problems," and (3) a late-afternoon slide in stock prices after Reuters reported t hat US authorities widened their investigation of insider trading and issued subpoenas to "several large hedge funds."


•   Bullish factors included (1) the action by President Obama to agree to a 2-year extension of tax cuts, which will discourage year-end tax selling of stocks and may potentially boost economic growth, (2) data from the US Labor Department that showed job openings in the US rose by 351,000 in Oct to a 2-year high of 3.36 million, (3) an increase in M&A activity after AGL Resources bought Nicor for $2.4 billion in cash and stock, and (4) the unexpected increase in Oct consumer credit which posted its biggest increase in 9 months (+$3.4 billion versus expectations of a -$1.0 billion decline).


•   Netflix (NFKX) fell 2.6% in European trading after the company was cut to "hold" from "buy" at Jeffries Group after Netflix named a new CFO.


•   3M (MMM) slid 1.0% in European trading after Goldman Sachs cut its recommendation on the stock to "neutral" from "buy" after 3M predicted that sales volume at its existing businesses will rise more slowly in 2011 than they have this year.

[setravis]

Thursday, December 9, 2010...

Overnight U.S. Stock News

•   Dec S&Ps this morning are up +4.10 points and posted a fresh contract high in overnight trade. The stock market yesterday fluctuated between gains and losses and finally settled slightly higher as speculation the extension of tax cuts will boost economic growth offset a surge in Treasury yields: Dow +0.12%, S&P 500 +0.37%, Nasdaq Composite +0.41%.

                Bullish factors included (1) carry-over support from Tuesday's rally on speculation the extension of US tax cuts will boost economic growth, (2) strength in life insurers after S&P lifted its outlook on the sector to "stable" from "negative," saying the companies may sidestep downgrades next year following stock and bond sales that bolstered their balance sheets, (3) a rally in regional bank stocks on the premise that rising yields on longer-term Treasuries will make bank lending more profitable, and (4) the action by Credit Suisse Group Ag to raise its 2011 year-end and earnings estimates for the S&P 500 to 1,350 with company earnings of $91 a share, higher than its prior prediction for the S&P 500 to end 2011 at 1,200 with earnings of $86 a share.


•   Bearish factors included (1) the surge in the yield on the 10-year T-note to a 5-1/4 month high of 3.17%, (2) weakness in energy and raw material producers after dollar strength prompted a slide in commodities, and (3) concern that China may hike interest rates as soon as this weekend after it brought forward the release of Nov inflation data by 2 days to Dec 11.


•   Ford Motor (F) and General Motors (GM) may be active to the downside today after China hinted that it may end auto sales tax rebates next year.

[setravis]

Friday, December 10, 2010...

Overnight U.S. Stock News

•   March S&Ps this morning are up +4.10 points. The stock market yesterday swung between gains and losses and finally settled mixed as weakness in commodity producers offset better-than-expected data on jobless claims: Dow -0.02%, S&P 500 +0.38%, Nasdaq Composite +0.29%.

                Bearish factors included (1) a slump in commodity producers after a rally in the dollar prompted losses in most commodities, (2) worries that congressional bickering may delay extension of the Bush-era tax cuts after Oregon Representative DeFazio said that House Democrats approved a resolution to block a floor debate on the tax agreement between President Obama and congressional Republicans, and (3) concern the European sovereign-debt crisis may worsen after Fitch Ratings cut Ireland's credit rating 3 levels to BBB+ from A+, citing "the additional fiscal costs of restructuring and supporting the banking system."


•   Bullish factors included (1) the larger-than-expected decrease in weekly US initial unemployment claims (-17,000 to 421,000 versus expectations of -11,000 to 425,000), (2) strength in asset managing stocks after Barclay's advised buying the companies to benefit from an improving equity market, (3) Fed data that said US household wealth rose by $1.2 trillion in Q3 and that US household debt in Q3 fell -1.7%, its 10th consecutive quarterly decline, which may lead to an increase in consumer confidence that helps boost personal spending, and (4) strong economic data from the Asia-Pacific region which signals strength in the global economy after Q3 Japan GDP was revised higher and Nov Australian payrolls posted their biggest increase in 10 months.


•   Procter & Ganble (PG) rose 1% in European trading after Goldman Sachs upgraded the world's largest consumer-products company to "buy" from "neutral," saying P&G is the "turnaround story of 2011" and analysts are "underestimating emerging market sales."

[setravis]

Monday, December 13, 2010...

Overnight U.S. Stock News

•   March S&Ps this morning are up +2.30 points. The stock market last Friday moved higher on better-than-expected economic data and finished on its high: Dow +0.35%, S&P 500 +0.60%, Nasdaq Composite +0.80%. The S&P 500 posted a fresh 26-month high and the Nasdaq rallied to a new 3-year high.

                Bullish factors included (1) the narrower-than-expected Oct US trade balance (-$38.7 billion versus expectations of -$43.9 billion) which shrank to a 9-month low as exports jumped +3.2% to a 2-year high of $158.7 billion and is positive for Q4 GDP growth, (2) the larger-than-expected increase in the Dec US University of Michigan consumer confidence which rose to a 6-month high (+2.6 to 74.2 versus expectations of +0.8 to 72.5), (3) a rally in solar companies after Senate negotiators approved extending grants to US wind and solar power companies for one year, and (4) strength in hospital stocks on increased M&A activity after Community Health Systems offered to buy Tenet Healthcare.


•   Bearish factors included (1) the action by China to raise banks' reserve requirements by 50 bp to 18.5%, the third increase in the last five weeks, which may slow Chinese and global economic growth, and (2) weakness in energy and raw material producers after dollar strength prompted a slump in most commodities.


•   Apple (AAPL) rose 1.1% in European trading after Goldman Sachs raised its share price estimate for the company to $430 saying the company's profit margins will expand with a "bevy of product releases in the first half of 2011 serving as key catalysts."

[setravis]

Tuesday, December 14, 2010...

Overnight U.S. Stock News

•   March S&Ps this morning are up +1.80 points. The stock market yesterday finished mixed as trepidation ahead of Tuesday's FOMC meeting offset the bullishness of China refraining from raising interest rates: Dow +0.16%, S&P 500 +0.00%, Nasdaq Composite -0.48%. The S&P 500 and the Dow posted 26-month highs and the Nasdaq rallied to a new 3-year high.

                Bullish factors included (1) carry-over support from a rally In Asian and European stock markets after China refrained from raising interest rates, which boosted optimism in the sustainability of the global recovery, (2) a rally in health-care stocks after a federal judge ruled the Obama administration's health overhaul was unconstitutional, and (3) strength in raw-material and energy producers as a weak dollar prompted a rally in most commodities.


•   Bearish factors included (1) weakness in regional banks after Huntington Bancshares, the Ohio lender that has yet to repay $1.4 billion in US bailout funds, said it will sell $920 million of shares to raise capital, (2) the early jump in the yield on the 10-year T-note to a 6-1/4 month high of 3.39%, and (3) profit taking ahead of Tuesday's FOMC meeting.


•   Amgen (AMGN) climbed 7.7% in pre-market trading after a study showed one of its drugs delayed the spread of prostate cancer to men's bones.

[setravis]

Wednesday, December 15, 2010...

Overnight U.S. Stock News

•   March S&Ps this morning are down -4.30 points on concern over contagion in Europe's debt crisis. The stock market yesterday moved higher after US retail sales topped estimates and business inventories rose less than forecast, but the market gave up most of its gains after Treasury yields surged: Dow +0.42%, S&P 500 +0.09%, Nasdaq Composite +0.11%. The Dow posted a 26-month high.

                Bullish factors included (1) the larger-than-expected increase in Nov retail sales and the upward revision to Oct (Nov +0.8% and +1.2% less autos versus expectations of +0.6% and +0.6% less autos and Oct retail sales revised up to +1.7% and +0.8% less autos from the previously reported +1.2% and +0.4% less autos), (2) the smaller-than-expected increase in Oct business inventories (+0.7% versus expectations of +1.0%), which signals that merchants are having trouble keeping up with strong demand, (3) the action by the ICSC to revise up its Nov-Dec holiday-season sales forecast to a r ange of 3.5% to 4.0% from 3.0% to 3.5%, citing "the strong Nov performance and promising trends in early December," (4) the post-FOMC meeting statement that said the Fed will leave its $600 billion asset purchase plan unchanged because the economic recovery is insufficient to bring down unemployment, and (5) strength in health-care companies led by gains in Amgen which rallied after a study showed one of its drugs delayed the spread of prostate cancer to men's bones.


•   Bearish factors included (1) weakness in consumer-electronics retailers after Best Buy reported Q3 earnings that were less than forecast, (2) the jump in Treasury yields after the 10-year T-note yield soared to a 6-3/4 month high of 3.48%, and (3) concerns that the European sovereign-debt crisis may be worsening after Standard & Poor's cut the outlook on Belgium's AA+ credit rating to negative from stable.


•   Citigroup (C) fell 1.5% in pre-market trading on carry-over weakness from a fall in European banking shares.


•   First Solar (FSLR) gained 1.4% in European trading after the world's biggest maker of thin-film solar modules forecast that its 2011 sales will climb to as much as $3.9 billion, beating analysts' estimates of $3.62 billion.

[setravis]

Thursday, December 16, 2010...

Overnight U.S. Stock News

•   March S&Ps this morning are up +2.30 points. The stock market yesterday opened lower and recovered its losses mid-morning, but then faded the rest of the day and closed lower as rising Treasury yields offset strong US economic data: Dow -0.17%, S&P 500 -0.51%, Nasdaq Composite -0.40%. The Dow rallied to a 26-month high but gave up its gains and closed lower.

                Bearish factors included (1) concern that the European sovereign-debt crisis is worsening after Moody's Investors Service placed Spain's Aa1 debt rating on review for a possible downgrade, citing the 170 billion euros ($226 billion) the nation needs to raise next year, while also having to refinance 30 billion euros for its regions and 90 billion euros for its banks, (2) weakness in chipmakers after researcher Gartner said that spending on semiconductor equipment will decline 1% next year after a record 131% increase in 2010 to $38.4 billion, (3) a sell-off in Visa and MasterCard, the world's two large st credit-card companies, after the Competition Bureau of Canada said that both companies use "anti-competitive" rules to prevent merchants in Canada from accepting cheaper payment options, and (4) the increase in the 10-year T-note yield to a 7-month high of 3.556%.


•   Bullish factors included (1) the larger-than-expected increase in the Dec Empire manufacturing index (+21.7 to 10.6 versus expectations of +16.1 to 5.0), (2) stronger-than-expected Nov industrial production (+0.4% versus expectations of +0.3%), (3) the larger-than-expected increase in Nov capacity utilization which climbed to its highest level in 25 months (+0.3 to 75.2 versus expectations of +0.2 to 75.0%), and (4) the smaller-than-expected monthly increase in Oct CPI (+0.1% m/m versus expectations of +0.2% m/m).


•   Starbucks (SBUX) rose 1.0% in European trading after Goldman Sachs resumed coverage on the company with a "conviction buy," predicting the shares will climb 38%.

[setravis]

Friday, December 17, 2010...

Overnight U.S. Stock News

•   March S&Ps this morning are little changed and down -0.90 of a point. The stock market yesterday finished higher after stronger-than-expected economic data bolstered confidence in the economy: Dow +0.36%, S&P 500 +0.62%, Nasdaq Composite +0.77%.

                Bullish factors included (1) the unexpected decline in weekly initial US unemployment claims (-3,000 to 420,000 versus expectations of +4,000 to 425,000), (2) the larger-than-expected increase in Nov US housing starts (+3.9% to 555,000 versus expectations of +6,000 to 550,000), and (3) the unexpected increase in the Dec Philadelphia Fed manufacturing index which expanded at its fastest pace in 5-1/2 years (+1.8 to 24.3 versus expectations of -7.5 to 15.0).


•   Bearish factors included (1) concern that the European sovereign-debt crisis is worsening after Moody's Investors Service placed Greece's credit ratings on review for possible downgrade due to concerns about Greece's ability to cut debt to "sustainable levels" and a revenue shortfall this year, (2) concern that continued weakness in the US housing market may derail the economic recovery after the unexpected decline in Nov US building permits to a 19-month low (-4.0% to 530,000 versus expectations of +1.5% to 560,000), and (3) the increase in the 10-year T-note yield to a 7-month high of 3.56%.


•   Oracle (ORCL) rose 4.6% in European trading after the company predicted that Q4 profit may climb to 48 cents to 50 cents a share, higher than analysts' estimates of 47 cents.


•   Applied Materials (AMAT) climbed 1.2% in pre-market trading after Barclays Plc upgraded the world's largest producer of chip-making equipment to "overweight" with a target price of $17.00 per share.

[setravis]

Monday, December 20, 2010...

Overnight U.S. Stock News

•   March S&Ps this morning are up +5.50 points and posted a fresh contract high in overnight trade. The stock market last Friday fluctuated as European debt concerns offset upbeat earnings results and kept the stock indexes mixed: Dow -0.06%, S&P 500 +0.08%, Nasdaq Composite +0.21%.

                Bullish factors included (1) the +1.1% m/m increase in Nov US leading indicators, the biggest gain in 8 months and a sign that the economic recovery will continue into next year, (2) the action by Congress to pass the $858 billion bill that extends tax cuts enacted during the Bush administration for another 2 years, which may fuel further growth in the US economy, (3) strength in technology stocks after Research in Motion and bellwether Oracle reported earnings that topped forecasts, and (4) increased M&A activity that boosted regional bank stocks after Bank of Montreal agreed to buy Marshall & Ilsley for $4.1 billion.


•   Bearish factors included (1) carry-over weakness from a decline in European stocks on concern that the European sovereign-debt crisis is worsening after Moody's Investors Service downgraded Ireland's credit rating five notches to Baa1 from Aa2 with a negative outlook, (2) the sell-off in solar stocks after DigiTimes reported that Germany will cut incentives for photovoltaic solar systems by -16% on July 1, and (3) valuation concerns after the S&P 500 advanced 7 of the last 8 trading days and is trading at 15.5 times reported earnings, its most expensive level in 6 months.


•   Amazon.com (AMZN) rallied 1% in pre-market trading after Barclays Plc raised its share-price estimate for the world's largest online retailer to $195 from $180, citing a "strong" shopping trend this holiday season.

[setravis]

Tuesday, December 21, 2010...

Overnight U.S. Stock News

•   March S&Ps this morning are up +3.90 points and posted a fresh contract high on overnight trade. The stock market yesterday finished mixed as increased optimism the global economic recovery may be sustained offset European debt concerns: Dow -0.12%, S&P 500 +0.25%, Nasdaq Composite +0.25%. The S&P 500 Index climbed to a 27-month high and the Nasdaq rose to a 3-year high.

                Bullish factors included (1) carry-over support from a rally in European stocks which were pulled higher by automakers after Volkswagen AG, Europe's biggest carmaker, predicted that it expects auto sales in China to grow 10% to 15% next year, (2) data from S&P that showed Q3 stock buybacks among S&P 500 companies rose +2.5% q/q to $79.56 billion, the fifth straight quarterly increase, (3) comments from St. Louis Fed President Bullard who said that US GDP "will be stronger in 2011 than people thought," and (4) strength in energy producers after crude oil and gasoline r allied.


•   Bearish factors included (1) concern that the European sovereign-debt crisis is worsening after the cost to insure French government debt rose to a record, which indicates France may be at risk of losing its top credit rating, (2) weakness in technology stocks led by a drop in Intel which fell after the WSJ reported that Intel's proposed purchase of McAfee faces scrutiny from Europe's antitrust regulator, and (3) the prediction from Goldman Sachs that lower state and local government spending, which accounts for 12% of the national economy, may reduce US GDP growth by -0.5% next year.


•   Adobe Systems (ADBE) jumped 4.8% in European trading after the company forecast fiscal Q1 profit will be 54 cents to 59 cents a share, better than analysts' estimates of 51 cents.

[setravis]

Wednesday, December 22, 2010...

Overnight U.S. Stock News

•   March S&Ps this morning are up +0.40 of a point. The stock market yesterday settled higher on optimism that the global economic recovery may continue: Dow +0.48, S&P 500 +0.60%, Nasdaq Composite +0.68%. The S&P 500 Index and the Dow posted 2-1/4 year highs, while the Nasdaq climbed to a 3-year high. The S&P 500 Index has now completely recovered the entire plunge following Lehman Brothers collapse in Oct 2008.

                Bullish factors included (1) carry-over support from a rally in European stocks after Chinese Vice Premier Wang Qishan said that China has taken "concrete action" to help ease the European sovereign-debt crisis, (2) stellar US company earnings with more than 70% of S&P 500 companies beating profit estimates in Q3, a record sixth straight quarter earnings have surpassed estimates, (3) strength in retailers after the ICSC reiterated that US holiday sales this year will increase 3.5% to 4.0%, the biggest increase in 4 years, and ( 4) a rally in bank stocks on anticipation of further M&A activity after Toronto-Dominion Bank agreed to buy Chrysler Financial from Cerberus Capital Management LP for $6.3 billion in cash.


•   Bearish factors centered on concern that the European sovereign-debt crisis may worsen after (1) the cost of insuring Portuguese government debt rose to a 3-week high when Moody's Investors Service said it may cut Portugal's bond rating "by a notch or two" because of concerns over "sluggish" economic growth, and (2) the warning by Fitch Ratings that Greece's debt ratings are put on watch for possible downgrade to junk within 6 weeks after it reviews the nation's "fiscal sustainability."


•   Nike (NKE) slumped 5.7% in European trading after the world's largest maker of athletic shoes said orders for Dec to Apr rose +11% y/y, weaker than analysts' estimates of +11.6% y/y.


•   Tibco Software (TIBX) clmbed 3.7% in pre-market trading after the company reported adjusted Q4 EPS of 31 cents, better than analysts' estiamates of 28 cents, and it also announced a $300 million stock repurchase plan.

[setravis]

Thursday, December 23, 2010...

Overnight U.S. Stock News

•   March S&Ps this morning are down -0.90 of a point. The stock market yesterday settled higher on increased confidence in the sustainability of the economic recovery: Dow +0.23, S&P 500 +0.34%, Nasdaq Composite +0.15%. The S&P 500 Index and the Dow posted 2-1/4 year highs and the Nasdaq climbed to a 3-year high.

                Bullish factors included (1) the upward revision to US Q3 GDP, although the revision was smaller than expected (2.6% annualized from the previously reported 2.5% annualized but smaller than expectations of 2.8% annualized), (2) slack inflation pressures after the unexpected downward revision to the Q3 core PCE deflator to its slowest pace of increase since data began in 1959 (+0.5% q/q versus the previously reported +0.8% q/q), (3) the unexpected increase in the Oct FHFA house price index (+0.7% m/m versus expectations of -0.2% m/m), (4) strength in bank stocks after Federal lawmakers agreed to fund the government at current levels through Mar 4, which denies budget increases needed to implement new bank regulations imposed by the Dodd-Frank Act, and (5) comments from Philadelphia Fed President Plosser who said confidence in the sustainability of the economic recovery has increased and the US economy is likely to expand +3.0% to +3.5% next year.


•   Bearish factors included (1) concerns the European sovereign-debt crisis may worsen after credit-default swaps to insure Greek government debt rose 13 bp to a 1-month high of 983 bp, and (2) the smaller-than-expected increase in Nov US existing home sales (+5.6% to 4.68 million versus expectations of +7.0% to 4.74 million).


•   Bed Bath & Beyond (BBBY) gained 5.0% in European trading after the company forecast full-year earnings of at least $2.86 a share, beating analysts' estimates of $2.81. The company also announced a $2 billion stock buyback plan.


•   Micron Technology (MU) fell 5.5% in pre-market trading after it reported that fiscal Q1 sales were $2.25 billion, below analysts' estimates of $2.37 billion.

[setravis]

TODAY'S MARKETS...DECEMBER 23, 2010
Dow Edges Up to New High SInce 2008

NEW YORK—The Dow Jones Industrial Average edged up to a fresh two-year closing high Thursday while other measures slipped following a mixed bag of economic data that left investors with little reason to make major position changes ahead of the holiday.

The Dow rose 14 points, or 0.12%, to 11573.49, its highest closing level since August 2008.

Alcoa led its climb with a rise of 20 cents, or 1.3%, to $15.34. Chevron was also strong, up 76 cents, or 0.9%, to 90.68, and Exxon Mobil added 40 cents, or 0.6%, to 73.20, boosted by a climb in crude-oil futures to fresh two-year highs above $91 a barrel.

Limiting the Dow's ascent, Bank of America fell 32 cents, or 2.4%, to 13.06. Walt Disney was also weak, off 25 cents, or 0.7%, to 37.70, while Travelers slipped 37 cents, or 0.7%, to 55.48.

The Nasdaq Composite fell 5.88, or 0.22%, to 2665.60, but gained 0.9% for the week The Standard & Poor's 500-stock index shed 2.07, or 0.16%, to 1256.77, with financials leading to the downside in a small pullback from the sector's Wednesday rally while energy and materials stocks rose. The broad measure gained 1% on the week.

Still, it was a positive week for stocks, with the Dow up 0.71% on the week, the S&P 500 up 1% and the Nasdaq up 0.9%, adding to their gains for the month. With one week left to December, the Dow is up 5.2% for the month, while the S&P 500 is up 6.5% and the Nasdaq is up 6.7%.

U.S. stock markets are closed on Friday, Christmas Eve.

The activity followed a mixed round of economic data with few surprises, prompting investors to see little need to change their positions heading into the holiday.

While durable-goods orders fell more than twice the drop that was projected by economists, they were weighed down by a 53.1% plunge in commercial airplane orders. New orders for nondefense capital goods excluding aircraft—a metric that is considered a key barometer of capital spending—rose 2.6%, an indication businesses are spending as the economy recovers.

Also encouraging, the Reuters/University of Michigan consumer sentiment index's final reading for December edged higher, meeting expectations.

Meanwhile, U.S. consumer spending was modest in November with a 0.4% increase, slightly smaller than the 0.5% rise economists had forecast. Demand for new homes in the U.S. also rose less than expected with an increase of 5.5%.

"Housing is a little bit worrisome, but it's not totally out of expectations," said Weyman Gong, chief investment officer at Signature. "We never expected the housing market to recover any time soon in a big move."

Despite some of the data missing expectations, taken together it was seen as confirming the recent trend of a slow-but-steady economic recovery, said Brian Gendreau, market strategist at Financial Network, a financial advisory firm.

"I don't think we can count on housing to lead us out of this recovery, but we are seeing strong export growth, and pretty strong consumer spending," Mr. Gendreau said. "Those are all good signs."

Thursday's stock moves came on thin volume as traders began departing for the holiday weekend. The stock market will be closed on Friday. Less than 3 billion shares changed hands in New York Stock Exchange Composite volume during the session, well below the month's average of 4.8 billion shares a day.

Among stocks in focus, Bed Bath & Beyond climbed 2.43, or 5.1%, to 50.10. The housewares retailer posted a 25% increase in fiscal third-quarter earnings, beating its guidance and raising its expectations for the remainder of the year.

Jo-Ann Stores surged 14.56, or 32%, to 60.19, after the fabric and craft retailer agreed to be acquired by private-equity firm Leonard Green & Partners LP for about $1.6 billion. Jo-Ann holders would get $61 a share under the buyout bid, a 34% premium to Wednesday's closing price.

Sonic Solutions jumped 3.22, or 29%, to 14.42, after the digital-media company signed a definitive agreement to be acquired by Rovi Corp. in a stock-and-cash transaction that has an enterprise value of around $720 million. The pact values Sonic's common stock at $14.17 a share, a 38.2% premium to Sonic's 30-day average per share closing price as of Dec. 21. Rovi shares slipped 1.09, or 1.9%, to 57.26.

Micron Technology shed 34 cents, or 4.1%, to 7.94. The memory-chip maker's fiscal first-quarter profit declined 24% on lower margins as softening personal-computer demand weighed and sales growth missed Wall Street's expectations.

Verigy climbed 40 cents, or 3.2%, to 13.03, after Advantest Corp. boosted its takeover bid for the semiconductor-testing company by 23% to roughly $900 million. Verigy's board is taking no stance yet on the bid and continues to back a nearly $600 million deal to acquire LTX-Credence. LTX-Credence declined 4 cents, or 0.6%, to 7.72.

U.S. shares of Allied Irish Banks tumbled 13 cents, or 12%, to 96 cents. Ireland's Minister for Finance Brian Lenihan announced plans to recapitalize the Irish bank.

Crocs slid 99 cents, or 5.3%, to 17.70, after the company said its chief financial officer, Russell C. Hammer, has resigned effective Dec. 31 to join an unnamed Chicago-based public company as its financial chief. The shoe maker said a search for Mr. Hammer's successor is under way.