2:40 PM New York – Market indexes extended gains in the week, in the month and in the year after the U.S. revised third quarter economic growth rate to 5%. Tech stocks led the charge and retailers gained on the expectations of stronger-than-expected holiday sales.
Stocks in New York extended market gains after energy and technology sectors advanced and debate raged on the future direction of the price of oil.
Stocks were also powered by the better-than-expected third quarter economic growth on rising consumer spending after the fall in
Investors weighed the global demand-supply balance with the rising supply of oil in the U.S. and refining capacity.
In addition, traders looked at the flat production from the OPEC over the last ten years as non-OPEC suppliers ramp up production.
Investors are focused on the marginal cost of production from shale fields and more than eighty percent of production is profitable even with $20 a barrel.
New shale producers however do face higher cost of capital and marginal cost pf production is between $50 and $66 a barrel.
On Wall Street trading, Tollbooth Strategy Index gained 0.6% or 66.07 to 10,152.52.
S&P 500 index increased 4.14 or 0.2% to 2,082.69 and the Nasdaq Composite Index fell 9.59 or 0.2% to 4,771.72.
The Dow Jones Industrial Average surpassed 18,000 for the first time after technology stocks led the charge.
The Dow, not as widely followed as in the past, dropped to an eight-month low on October 16 and rallied 1,882 points, or 12% from the low.
The Department of Commerce reported durable goods orders in November fell 0.7% to $242.3 billion and orders excluding transportation decreased 0.4% and defense slid 0.1%.
In a separate report, the department revised higher its estimate of economic growth to 5% in the third-quarter from the previous estimate of 3.9%. The third estimate of the economic growth is the final estimate.
November personal income rose 0.4% and disposable personal income increased 0.3%. Personal consumption expenditure jumped 0.6% in the month, the government report showed.
The Commerce Department added seasonally adjusted new home sales in November fell 1.6% to 438,000 from the revised October rate of 445,000 and slipped 1.6% from a year ago month.
The price of oil future for the immediate month delivery increased 3% to $56.34 a barrel and gold edged up 0.2% to $1,196.70.
, the private agro-food and poultry products trader said it is not interested in acquiring Netherlands-based animal-feed supplier Nutreco NV with an offer of about $3.79 billion or €3.1 billion.
), the retail drugstore chain reported sales in the first-quarter ending in November jumped 6.7% to $19.6 billion form a year ago period.
Total comparable store sales in the quarter climbed 5.7% and front-end comparable store sales increased 1.5%. While customer traffic in comparable stores dropped 2.7% but basket size advanced 4.2%.