After showing a lack of direction in early trading, stocks moved modestly higher over the course of the trading session on Wednesday. While buying interest remained somewhat subdued, the major averages managed to end the day firmly in positive territory.
The strength in the markets came as traders reacted to some upbeat economic data, including a report from the Labor Department showing that weekly jobless claims fell below the 500,000 level for the first time since early January.
The report showed that jobless claims in the week ended November 21st fell to 466,000 from the previous week's revised figure of 501,000. Economists had been expecting jobless claims to edge down to 500,000 from the 505,000 originally reported for the previous week.
Additionally, a report from the Commerce Department showed that new home sales increased by much more than expected in the month of October, with the report also showing an increase in sales compared to the same month a year ago.
The Commerce Department said new home sales rose 6.2 percent to an annual rate of 430,000 in October from the revised September rate of 405,000. Economists had expected sales to edge up to 404,000 from the 402,000 originally reported for the previous month.
While the Commerce Department released a separate report showing that durable goods orders unexpectedly decreased in the month of October, the report also showed a notable upward revision to pace of order growth in September.
In corporate news, shares of Tiffany & Co. (TIF) turned in a strong performance after the jewelry retailer reported third quarter earnings that were flat year-over-year at $0.35 per share, coming in well above analyst estimates of $0.24 per share.
Tiffany also raised its earnings guidance for the full year, saying it now expects to report earnings of $1.88 to $1.98 per share compared to its previous forecast for earnings of $1.65 to $1.75 per share. Analysts had been expecting the company to earn $1.76 per share.
Meanwhile, shares of Microsoft (MSFT) closed moderately lower after the software giant said it has appointed Peter Klein as its new chief financial officer to replace Chris Liddell, who informed the company of his intention to resign his position to pursue other opportunities.
While stocks showed a strong move to the upside in morning trading, they were unable to sustain the upward move. Traders appeared reluctant to continue buying stocks ahead of the Thanksgiving Day holiday.
The major averages moved roughly sideways in late day trading, ending the session modestly higher. The Dow closed up 30.69 points or 0.3 percent at 10,464.40, the Nasdaq rose 6.87 points or 0.3 percent to 2,176.05 and the S&P 500 advanced 4.98 points or 0.5 percent to 1,110.63.
Sector News
Gold stocks turned in some of the market's best performances, benefiting from a continued increase by the price of the precious metal. The NYSE Arca Gold Bugs Index closed up 2.8 percent, ending the session at its best closing level in well over a year.
The gains by gold stocks came as gold for December delivery closed up $21.20 at a record closing high of $1,187 an ounce. Gold benefited from some weakness in the value of the U.S. dollar, which makes the precious metal more appealing to foreign investors.
Similarly, a significant increase by the price of natural gas contributed to considerable strength among natural gas stocks. With natural gas for January delivery closing up $0.397 or 8.3 percent at $5.163 per million BTUs, the NYSE Arca Natural Gas Index closed up 2.1 percent.
Considerable strength was also visible among airline stocks, as reflected by the 1.6 percent gain posted by the NYSE Arca Airline Index. US Airways (LCC) helped to lead the sector higher, closing up 7 percent, at a one-month closing high
Most of the other major sectors also moved to the upside on the day, with steel, retail, and telecom stocks posting notable gains. On the other hand, most financial stocks did not participate in the upward move, limiting the upside for the broader markets.
Dow Components
A majority of the Dow components ended the day in positive territory, contributing to the modest gain posted by the blue chip index.
Boeing (BA) turned in one of the Dow's best performances, with the aerospace giant ending the session up 1.9 percent. The gain extended a recent upward move by shares of Boeing, which ended the session at their best closing level in over a month.
Shares of Caterpillar (CAT) also showed a strong upward move, advancing by 1.8 percent on the day. Pfizer (PFE), Disney (DIS) and DuPont (DD) also posted notable gains, with shares of Pfizer setting a new one-year closing high.
On the other hand, Kraft (KFT) and Back of America (BAC) posted notable losses, limiting the upside for the Dow. Shares of Kraft closed down by 1.5 percent, while shares of Bank of America fell 0.9 percent on the day.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region closed mostly higher on Wednesday after seeing some weakness in the previous session. Japan's benchmark Nikkei 225 Index rose 0.4 percent, while Hong Kong's Hang Seng Index closed up by 0.8 percent.
The major European markets also rebounded after seeing some weakness on Tuesday, with the U.K.'s FTSE 100 Index advancing by 0.8 percent, while the French CAC 40 Index and the German DAX Index rose by 0.7 percent and 0.6 percent, respectively.
In the bond markets, treasuries showed a notable upward move following the release of the results of Treasury's auction of $32 billion worth of seven-year notes. Subsequently, the yield on the ten-year note, which moves opposite of its price, closed down 3.8 basis points at 3.279 percent.
Looking Ahead
Following the Thanksgiving Day holiday on Thursday, trading activity on Friday is likely to be limited. The markets will only be open until 1 pm ET, which will likely lead some traders to remain away from their desks.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.