Internet shopping data helps Nasdaq
The Nasdaq rose yesterday as strong online holiday sales boosted shares of retailers, including Amazon.com, and relieved some concerns about the consumer.
The Dow edged lower as falling oil prices prompted investors to sell energy shares, while the Standard & Poor’s index finished flat.
Worries that bank profits could be hurt by derivatives legislation under consideration also curbed enthusiasm about the broader market.
Amid continued questions about retailers’ strength in the holiday shopping season, online vendors turned out to be strong performers after analytics firm comScore said that Cyber Monday sales rose 5 per cent from the previous year.
Shares of Amazon jumped 2.7 per cent to $142.25 on Nasdaq, and during the session, the stock hit a split-adjusted all-time high of $142.67.
“It’s not a surprise e-commerce retail is expected to be much stronger than bricks-and-mortar retail this season. More people are content to do more convenient shopping online and get just as good, if not better, discounts,” said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles.
The Dow Jones industrial average declined 18.90 points, or 0.18 per cent, to end at 10,452.68.
The Standard & Poor’s 500 Index inched up just 0.38 of a point, or 0.03 percent, to finish at 1,109.24.
The Nasdaq Composite Index gained 9.22 points, or 0.42 percent, to close at 2,185.03.
Shares of Bank of America Corp rose 3.2 per cent to $16.15 after the closing bell as it said it has worked out a deal with the government to repay $45bn in taxpayer bailout funds, known as Troubled Asset Relief Program (TARP) funds, by raising new capital.
During the regular session, the banking company’s stock closed at $15.65, down 1.5 per cent, on the NYSE.
An ADP National Employment private-sector survey showed US private employers shed 169,000 jobs in November.
That data got Wall Street’s attention because weakness in the labour market is one of the biggest headwinds facing a recovery.