Stocks saw moderate strength to close out the Christmas holiday-shortened week on Thursday, with buying interest driven largely by the day's upbeat jobs report. With the advance, the major averages all closed at their best levels of the year after moving higher for a fifth straight session.
The day's upside came after the Labor Department reported that initial jobless claims for the week ended December 19th fell to 452,000 from the previous week's unrevised figure of 480,000. Economists had been expecting a more modest decrease in jobless claims to about 470,000.
With the decrease, jobless claims fell to their lowest level since the week ended September 6, 2008, when jobless claims came in at 447,000.
Traders also digested data from the Commerce Department, which said durable goods orders edged up by 0.2 percent in November following an unrevised 0.6 percent decrease in October. Economists had been expecting a somewhat more substantial increase in orders of about 0.5 percent.
On the healthcare front, the Senate voted to pass sweeping legislation to reform the health care system in America. By a vote of 60 to 39, the 58 Democrats and two independents voted to pass the measure over the united opposition of the chamber's Republicans.
Additionally, financial service provider Citigroup, Inc. (C) followed Bank of America (BAC) and Wells Fargo (WFC) with a partial repayment of the U.S. Government bailout funds received under the Troubled Asset Relief Program in October 2008.
Citi made a payment of $20 billion through a combination of stock and debt offerings. In addition, the firm also terminated the loss-sharing agreement with the Treasury Department.
Meanwhile, Pfizer Inc. (PFE) said that the FDA has determined that the data contained in its latest NDA for Lyrica capsules CV is insufficient to support approval. Lyrica is indicated as a monotherapy treatment for generalized anxiety disorder.
The major averages saw some further upside going into the close, ending the session at or near their best levels of the day. The Dow closed up 53.66 points or 0.5 percent at 10,520.10, the Nasdaq advanced by 16.05 points or 0.7 percent to 2,285.69 and the S&P 500 rose by 5.89 points or 0.5 percent to 1,126.48.
With the gains, the major averages closed higher in all four sessions of the holiday-shortened week. The Dow and the S&P 500 posted gains of 1.9 percent and 2.2 percent, respectively, while the Nasdaq saw a weekly gain of 3.3 percent.
Sector News
Electronic storage stocks were some of the day's best performers, with the NYSE Arca Disk Drive Index advancing by 2.2 percent. With the upward move, the index ended the session at its best closing level in eighteen months.
Further reflecting the day's strength in the tech sector were gains by semiconductor stocks, which drove the Philadelphia Semiconductor Index up by 1.6 percent. The day's gain propelled the index to its best closing level in sixteen months.
Commercial real estate, steel, and banking stocks also saw notable gains, among others, while some health insurance and airline stocks saw modest losses, bucking the day's uptrend.
Dow Components
Alcoa (AA) was the Dow's strongest percentage gainer, climbing by 2.1 percent on the day. The stock rose for a fifth straight session and closed at its best price in nearly fifteen months.
Travelers (TRV) also rose by a substantial margin, posting a gain of 1.6 percent. With the gain, shares of the insurer continued to recover from the two-month closing low set last Friday.
Untied Technology (UTX), Intel (INTC), American Express (AXP) and DuPont (DD) also posted strong gains, rising by more than 1 percent each.
Meanwhile, Merck (MRK) and Disney (DIS) retreated by modest margins, seeing losses of 0.7 percent and 0.4 percent, respectively.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region closed moderately higher on Thursday. Japan's benchmark Nikkei 225 Index rose by 1.5 percent, while the Shanghai Composite Index surged up by 2.6 percent.
The major European markets also closed higher in a shortened session. The French CAC 40 Index edged up by 0.1 percent and the U.K.'s FTSE 100 Index rose by 0.6 percent, while the German markets were closed on the day.
In the bond markets, treasuries were notably weaker. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, closed at 3.807 percent, posting a gain of 5.9 basis points.
Looking Ahead
Next week, the markets may focus on data on consumer confidence, Chicago area manufacturing and weekly jobless claims amid another shortened week due to the New Year's Day holiday.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.