US stocks rise before holiday; Dow, S&P 500 again close at records

Tuesday, 24 Dec 2013 | 1:00 PM ET
Closing Bell Exchange
As 2013 comes to a close, Peter Andersen, Congress Asset Management Company; Craig Hodges, The Hodges Fund; David Molnar, HighTower; and Todd Battaglia, Meg Green and Associates, discuss market activity.

U.S. stocks rose on Tuesday, with the Dow industrials again notching record closes, as better-than-expected data bolstered optimism about the economic outlook.

"It has become clearer that 2013 for the U.S. equity markets was all about where can I place my money to make a decent return, and I think a lot of people ended up chasing the market and pushing it higher. It was the least worst house on a bad block," said Robert Pavlik, chief market strategist at Banyan Partners, contrasting the U.S. market to those in Asia, Europe and emerging markets.

"And, when interest rates started to tick up on Treasuries, equities seemed like the only game in town. That and the fact that the Fed continues to print money and provide a low cost of capital environment for corporate America," Pavlik added.

The U.S. stock market closed three hours ahead of usual ahead of Wednesday's Christmas holiday.

  Name Price   Change %Change
S&P 500

The Dow Jones Industrial Average gained 62.94 points, or 0.4 percent, to an all-time closing high of 16,357.55.

Johnson & Johnson edged higher. Reuters cited people familiar with the matter in reporting private-equity firm Carlyle Group was close to a deal to buy the company's ortho clinical diagnostics business in a deal that could be worth about $4 billion.

The S&P 500 also advanced to a record finish, up 5.33 points, or 0.3 percent, to 1,833.32, with materials and telecommunications the best performing of its 10 major sectors.

Tesla Motors climbed after the electric-car maker said the National Highway Traffic Safety Administration had reaffirmed the safety rating for its Model S Sedan.

The Nasdaq rose 6.51 points, or 0.2 percent, to 4,155.42, with the technology-heavy index up nearly 38 percent for the year.

Advancers outpaced decliners by a roughly 2-to-1 ratio on the New York Stock Exchange, where 272 million shares traded. Composite volume surpassed 1.3 billion.

2014 Capitol Hill outlook
Keith Boykin, CNBC contributor, and Kellyanne Conway, Republican strategist, provide a look at what's in store for lawmakers next year, as Congress grapples with the debt ceiling, Obamacare and jobs.

The dollar gained against the currencies of U.S. trading partners and Treasury prices fell, with the yield on the 10-year note rising 5 basis points to 2.99 percent.

On the New York Mercantile Exchange, crude futures topped $99.00 a barrel and gold futures bounced back above $1,200.00 an ounce.

Orders for goods intended to last at least three years increased 3.5 percent in November after a 0.7 percent decline the prior month. Consensus estimates called for a 2 percent rise.

New home sales fell 2.1 percent in November to 464,000 versus a 445,000 estimate.

"New home sales beat expectations and the prior month was revised higher. That's a good sign, housing may see a delayed but more positive reaction as we move through the new year. People are going to get a little freaked out about interest rates, but with higher rates prices come down a little bit, and eventually more people qualify for loans because banks want to make the loans," said Pavlik.

Data from the Federal Housing Finance Agency had home prices rising 0.5 percent in October from September, and up 8.2 percent from a year earlier.

On Monday, stocks advanced as Apple and Facebook led a rally in the technology sector and data had consumer sentiment at a five-month high and spending rising in November.

—By CNBC's Kate Gibson

Coming Up This Week:

Wednesday: Government offices and markets closed for Christmas Day holiday.

Thursday: Initial jobless claims.

More From CNBC.com:

  Price   Change %Change
S&P 500

Contact US


    Get the best of CNBC in your inbox

    › Learn More