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Wednesday, December 31, 2008 5:38:35 PM
Stocks rise in final session of 2008
Curtain comes down on worst year for U.S. market since 1937
stocks staged a modest rally Wednesday, the final session of 2008, as some staked out fresh positions in battered financial shares and most took stock of the worst year for the U.S. market since 1937.
"Good riddance to 2008," said Kim Rupert, analyst at Action Economics.
For the year, the Dow Jones Industrial Average has slumped nearly 34%, the S&P 500 has lost more than 38 % and the Nasdaq Composite is off more than 40%. The S&P 500 index, widely considered as the most representative of the market gauges for tracking U.S. stocks, has not seen a worse year since 1937.
More than $5 trillion in wealth vanished out of the S&P alone.
But in the final month of the year, the market has been reclaiming a bit of ground, with the Dow moving up 0.6%, the S&P 500 adding 0.8%, and the Nasdaq gaining 2.7%.
The energy sector, meanwhile, gained, as crude-oil prices reversed earlier losses and rallied back above $44 a barrel. Oil futures have tumbled more than 60% this year, the biggest yearly loss since crude started futures trading in New York in 1983. Read more about oil prices.
Gold finished up 1.6% at $884.30 an ounce. The metal's annual gain of 5.5% was its smallest since 2004. See Metals Stocks.
Turning to 2009
"While 2009 begins Thursday amid hopes of a better year, it is likely to be the same old story for the markets for some time to come," Rupert said. "Although the collapse in economic activity was swift, the road to recovery isn't likely to be as quick."
Wednesday, the dollar gained some ground after a report showed U.S. jobless claims unexpectedly fell in the latest week. But the Labor Department cited seasonal volatility, and indeed, the four-week average of claims stood at the highest level since 1982. Read more about the jobless-claims report.
"With the U.S., Japan, and much of Europe now in recession, and China's steam engine slowing precipitously, the focus for investors early in the new year will be on the degree of traction from the global rate cuts and the trillions of dollars in stimulus," the Action Economics analysts said.
Curtain comes down on worst year for U.S. market since 1937
stocks staged a modest rally Wednesday, the final session of 2008, as some staked out fresh positions in battered financial shares and most took stock of the worst year for the U.S. market since 1937.
"Good riddance to 2008," said Kim Rupert, analyst at Action Economics.
For the year, the Dow Jones Industrial Average has slumped nearly 34%, the S&P 500 has lost more than 38 % and the Nasdaq Composite is off more than 40%. The S&P 500 index, widely considered as the most representative of the market gauges for tracking U.S. stocks, has not seen a worse year since 1937.
More than $5 trillion in wealth vanished out of the S&P alone.
But in the final month of the year, the market has been reclaiming a bit of ground, with the Dow moving up 0.6%, the S&P 500 adding 0.8%, and the Nasdaq gaining 2.7%.
The energy sector, meanwhile, gained, as crude-oil prices reversed earlier losses and rallied back above $44 a barrel. Oil futures have tumbled more than 60% this year, the biggest yearly loss since crude started futures trading in New York in 1983. Read more about oil prices.
Gold finished up 1.6% at $884.30 an ounce. The metal's annual gain of 5.5% was its smallest since 2004. See Metals Stocks.
Turning to 2009
"While 2009 begins Thursday amid hopes of a better year, it is likely to be the same old story for the markets for some time to come," Rupert said. "Although the collapse in economic activity was swift, the road to recovery isn't likely to be as quick."
Wednesday, the dollar gained some ground after a report showed U.S. jobless claims unexpectedly fell in the latest week. But the Labor Department cited seasonal volatility, and indeed, the four-week average of claims stood at the highest level since 1982. Read more about the jobless-claims report.
"With the U.S., Japan, and much of Europe now in recession, and China's steam engine slowing precipitously, the focus for investors early in the new year will be on the degree of traction from the global rate cuts and the trillions of dollars in stimulus," the Action Economics analysts said.
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