By Victor Reklaitis and Sara Sjolin, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks wrapped up a good year on
a down note, as morning gains turned into sizeable losses on
Wednesday.
The Dow Jones Industrial Average failed to close out 2014 above
18,000 after topping that big round number for the first time last
week. Even so, it recorded its sixth straight year of gains, dating
back to the end of the 2008-2009 bear market.
The S&P 500 (SPX) slid 21.45 points, or 1%, to end at
2,058.90, leaving the benchmark with a still-impressive yearly
advance of 11.4%. It has now climbed for three straight years,
giving investors gains of nearly 64% in that span.
The Dow Jones Industrial Average (DJI) dropped by 160 points, or
0.9%, to 17,823.07. The blue-chip gauge, up 7.5% for the year,
clambered above 18,000 at the open and was up by as much as 60
points for the day before tumbling into the red. Wednesday's loss,
the biggest since Dec. 12, nudged it into a loss for December as
well, its first monthly loss in three.
The tech-heavy Nasdaq Composite (RIXF) shed 41.39 points, or
0.9%, to end at 4,736.05, achieving a 2014 gain of 13.4%. It, too,
has notched annual gains for three straight years.
The Russell 2000 (RUT) lost 8.36 points, or 0.7%, to close at
1,204.70, leaving the small-cap index with a yearly advance of
3.5%.
Some market watchers said there was no single factor behind the
stock market's choppiness on Wednesday, and investors shouldn't
read that much into its moves on relatively light, pre-holiday
volume. Others suggested typical end-of-quarter action occurred,
where portfolio managers bid up stocks in the morning, then ran out
of money and walked away, leaving equities vulnerable for an
afternoon fade.
"It's thin trading, and there's not much news out there," Joseph
Quinlan, chief market strategist at U.S. Trust, told MarketWatch.
Composite volumes for the New York Stock Exchange and Nasdaq were
below their 30-day moving averages, according to FactSet data.
On the economic front Wednesday, investors took in
worse-than-anticipated readings for weekly jobless claims and
Chicago-area business conditions. On the upside, a gauge of pending
home sales rose 0.8% in November, topping expectations.
The advance during 2014 was driven largely by improving
corporate earnings, steady gains by the U.S. economy and a
still-accommodative Federal Reserve, even as the central bank is
widely expected to begin raising interest rates in mid-2015. The
S&P has averaged a yearly rise of 9.7% over the past two
decades, so 2014's advance ranks as above average, albeit well
below 2013's jump of 29.6%.
Southwestern Airlines Co.(LUV) was the best-performing S&P
component of 2014, surging 125%. Transocean Ltd.(RIG) was the
biggest laggard, plunging 63%. Among individual sectors, utilities
led the pack, rising more than 28%, while the energy sector slid
10% to bring up the rear.
Both the New York Stock Exchange and Nasdaq will be closed
Thursday for New Year's Day. Markets will reopen on Friday.
Movers and shakers: Diamond Offshore Drilling Inc. (DO) closed
down 3.6% for the S&P 500's worst performance on Wednesday.
Energy stocks have been hit by plunging oil prices, and crude was
down again.
NephroGenex Inc.(NRX) finished up 187% after the small biotech
late Tuesday announced positive safety study results for a diabetic
nephropathy treatment.
Meadowbrook Insurance Group Inc.(MIG) also gained, rising 18.7%,
after news that China's Fosun International Ltd. will buy the U.S.
insurer for $433 million.
(Read more about the day's movers here:
http://www.marketwatch.com/story/nephrogenex-mimedx-in-focus-for-wednesday-2014-12-30.)
Other markets: In Asia, most markets ended higher, although
Australia and New Zealand finished in the red. The stock markets in
Japan, South Korea, Indonesia, Thailand and the Philippines were
closed for New Year's Eve.
Trading was upbeat but thin in Europe. German and Italian stock
markets were closed.
The dollar (DXY) gained, with the greenback achieving a yearly
advance of more than 12% and its best year since 2005. Oil prices
slumped, while gold prices dropped.
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