Guess what? Santa's back on Wall StreetMajor gauges hold on to gains as falling crude prices overshadow disappointing holiday retail sales.NEW YORK (CNNMoney.com) -- Stocks posted gains in light holiday-week trading Tuesday as a big drop in oil prices helped offset a weak report on holiday retail sales. The Dow Jones industrial average (up 32.92 to 12,376.14, Charts), the broader S&P 500 index (up 3.39 to 1,414.15, Charts) and the tech-heavy Nasdaq composite (up 5.93 to 2,407.11, Charts) all added around 0.3 percent with about 2-1/2 hours left in the session. The so-called Santa Claus rally that has lifted stocks this month got sidelined late last week when stocks had trouble finding momentum ahead of the holiday weekend. But after markets closed Monday for Christmas, all three major gauges posted gains Tuesday despite reports that sales for the holiday shopping period grew about 6.6 percent this year - below last year's 8.7 percent increase. Hugh Johnson, chairman of asset management company Johnson Illington Advisors, credited falling oil prices for the turnaround. Light sweet crude oil sank $1.56 to $60.90 a barrel on the New York Mercantile Exchange as mild Northeast weather offset concerns about Iran's nuclear program. "This may turn out to be a more interesting week than most think," Johnson said. On the move Among the 30 stocks in the Dow, 26 rose and four fell with automaker GM (up $0.28 to $29.70, Charts) the Dow's top gainers. Stocks of oil majors, including Dow component ExxonMobil (up $0.31 to $75.72, Charts), ConocoPhillips (up $0.13 to $71.18, Charts), Chevron (up $0.09 to $72.82, Charts) and Royal Dutch Shell (up $0.30 to $69.72, Charts), were all higher despite the sharp drop in crude prices. On the downside, shares of major retailers struggled, with Federated Department Stores (down $0.38 to $37.71, Charts), Target (down $0.16 to $57.16, Charts) and Sears (down $1.17 to $166.57, Charts) down in midday trading. Elsewhere, shares of Telik (Charts) plunged 70 percent after the drugmaker said its experimental cancer drug failed to improve survival in patients with advanced lung cancer or ovarian cancer. With little news on the economic front, investors will be looking ahead to the Commerce Department's report on new home sales due out Wednesday and existing home sales later in the week. Treasury prices edged higher, with the yield on the 10-year note slipping to 4.61 percent from 4.62 percent on Friday. Bond prices and yields move in opposite directions. The dollar was little changed versus the euro and the yen. Volume was light with many investors on vacation. Market breadth was positive. On the New York Stock Exchange, advancers topped decliners by a margin of two to one on volume of 450 million shares. On the Nasdaq, winners beat losers by a margin of four to three as 600 million shares changed hands. Markets that were open closed mostly higher in Asia, but some markets were closed there for Boxing Day, the holiday that follows Christmas. Major markets in Western Europe also were closed. |
|