Mixed Trading as New York Stock Market Pauses... Oil Prices Rise Again

[Asia Economy New York=Correspondent Baek Jong-min] Ahead of the Thanksgiving holiday, the New York stock market closed mixed.

On the 25th (local time), the Dow Jones Industrial Average fell 173.77 points (0.58%) to 29,872.47, the S&P 500 index dropped 5.76 points (0.16%) to 3,629.65, and the Nasdaq index rose 57.62 points (0.48%) to close at 12,094.40.

The Dow fell back to the 29,000 range after surpassing 30,000 the previous day. The Nasdaq recorded an all-time high both intraday and at closing.

[Image source=Reuters Yonhap News]

Major economic indicators were released ahead of the Thanksgiving holiday the following day.

The Department of Labor announced that initial jobless claims last week increased by 30,000 from the previous week to 778,000. Jobless claims have risen for two consecutive weeks. This was higher than the market expectation of 733,000. Concerns grew over the ongoing impact on the labor market due to the resurgence of COVID-19.

October personal consumption expenditures rose 0.5% month-over-month, better than the market forecast of a 0.3% increase, but October personal income fell sharply by 0.7%, more than the expected 0.1% decrease, raising concerns about future consumption.

The preliminary third-quarter GDP growth rate was 33.1% annualized quarter-over-quarter, matching the previously announced flash estimate and market expectations.

The minutes of the November Federal Open Market Committee (FOMC) meeting released that day failed to provide clear guidance on the asset purchase program, causing confusion in the market.

Fed officials generally agreed on the need to change guidance on bond purchase policies but expressed views that adjustments to speed or maturity could be made as appropriate.

West Texas Intermediate (WTI) crude oil for January delivery closed up 1.8% ($0.80) at $45.71 per barrel, the highest level since March 5, early in the COVID-19 pandemic.

December gold for delivery rose 0.1% ($0.90) to close at $1,805.50 per ounce.

Meanwhile, the New York stock market will be closed on Thanksgiving Day, the 25th, and will close early at 1 p.m. on the 27th.