Stocks dropped on Wednesday as investors worry over reports that Moodys credit
rating agency may downgrade Spains credit rating. Spain has been pinpointed in
recent months as having trouble with its debt markets, but well informed
investors are able to balance the news with reports focusing more on U.S.
events, such as updates on the tax package. The announcement of Senate approval
for the $858 billion tax package which passed 81-19 on Wednesday will now move
to the House of Representatives. The package has been debated by parties on both
sides of the political field as well as scrutinized by analysts who question the
long term affects of the deal. Stocks closed higher on Thursday as investors
digest the mixed reports on jobs and housing. The Labor Department reported that
the number of people filing for initial unemployment benefits fell from 423,000
to 420,000 in the latest week. Continuing claims filed for two weeks or more
were up 22,000. The Commerce Department reports that new private home starts
rose higher than anticipated by analysts with an increase of 3.9% above the
revised October figures. Investors anticipate that trading will be modest over
the next few weeks as scheduled reports on the economic calendar are sparse and
many will begin to take time off for the holidays. At close on Thursday the
major market indexes are all in the green. DJIA is up 41.78 points to 11,499.25.
Nasdaq is up 20.09 points to 2,637.31. S&P 500 is up 7.64 points to 1,242.87.
The Treasuries 10 year yield is down 0.04 to 3.48%. Oil is down 0.85 to $87.77 a
barrel. Author: Pamela Frost
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