The Dow Jones Industrial Average advanced to a new two-year high yesterday, gaining for the 10th time in 11 sessions. Blue-chip stocks led the broad market with financials the strongest performing sector, up 1.6%.
Financial stocks started strong following the takeover of Chrysler Financial by Toronto-Dominion Bank (NYSE: TD) for $6.3 billion. Bank of America Corporation (NYSE: BAC) rose 2.9%, and JPMorgan Chase & Co. (NYSE: JPM) was up 2.6%. American Express Company (NYSE: AXP) rebounded 1.7% after several down days due to the Federal Reserve’s proposed investigation into debit card issuers.
Traders seemed relaxed due to reassuring statements from China regarding support of the euro zone’s handling of its debt problems, signs of an improving world economy, and a lack of economic and corporate news. Volume is light as the Christmas holiday approaches, and many traders have already taken the week off.
In corporate news, Martek Biosciences Corp. (NASDAQ: MATK) spiked 36% after agreeing to be purchased by Royal DSM. And Adobe Systems Incorporated (NASDAQ: ADBE) rose 6.01% after beating analysts’ Q4 earnings estimates and projecting a gain of 10% in 2011. Jabil Circuit, Inc. (NYSE: JBL) and Paychex, Inc. (NASDAQ: PAYX) both delivered better-than-expected earnings. But Nike, Inc. (NYSE: NKE) fell 3% even after reporting Q4 earnings that were 6 cents above estimates.
Treasury yields were off slightly with the 10-year note at 3.322%. The euro fell to a record low versus the Swiss franc, and the lowest level in three weeks against the U.S. dollar. In late trading, the euro was quoted at $1.3096 versus $1.3126 on Monday.
At the close, the Dow rose 55 points to 11,533, the S&P 500 gained 8 points at 1,255, and the Nasdaq was up 18 points to 2,668. The NYSE traded just 810 million shares with advancers over decliners by 2.4-to-1. The Nasdaq crossed 399 million shares with advancers ahead by 2.6-to-1.
Crude oil for February delivery rose 45 cents to $89.82, and the Energy Select Sector SPDR (NYSE: XLE) jumped to a new two-year closing high at $66.99, up 67 cents. February gold settled at $1,388.80 an ounce, up $2.70. The PHLX Gold/Silver Sector Index (NASDAQ: XAU) gained 0.34 points to 220.8.
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