Stocks Claw Higher; Vix Hits 15-Month Low
Stocks clawed higher Wednesday after a report showed new-home sales rose more than expected.
Stocks had struggled at the open as earlier data were mixed: Jobless claims and personal spending topped expectations but durable goods unexpectedly dropped.
American Express , Bank of America and Alcoa were the biggest gainers on the Dow. Microsoft and Kraft were at the bottom of the pack.
The CBOE Volatility Index, widely seen as the best gauge of fear in the market, dropped to a 15-month low of 20.05.
Jobless claims fell to 466,000last week compared with estimates of 500,000, the lowest level since September 2008 when Lehman Brothers collapsed sending shockwaves through the markets.
October durable goods orders fell unexpectedly, but personal spending rose more than expected as income increased, data showed.
Consumers' mood improved slightly in November: The Reuters/Univ of Michigan gauge of consumer sentiment rose to 67.4in the final reading from 66 at mid-month. The final number was slightly better than the 67 economists had expected but not as robust as the 70.6 logged in October.
New-home sales rose 6.2 percentto 430,000 in October, well above the 395,000 expected. And mortgage rates slipped again last week: The fixed 30-year averaged 4.78 percent, cown from 4.83 percent in the prior week.
Gold hit a new record high above $1,180 an ounce after a newspaper report that India is open to buying more gold from the International Monetary Fund.
European stocks were trading higher, boosted by the U.S. Federal Reserve's revision of the growth outlook for next year, while Asian markets staged a late rally.
AIG's board authorized a $7 million compensation packagefor CEO Robert Benmosche.
The head of the FDIC warned of risksin a proposal that would break up the biggest financial institutions in the U.S.
On the earnings front, Deere reported a quarterly net loss because of weak equipment sales and some one-off charges.
Tiffany beat expectations andraised its forecast for full-year earnings.
Metro-Goldwyn-Mayer has sent confidentiality agreements to about 20 interested parties including Time Warner and News Corp , Reuters reported.
The last of three major Treasury auctions this week takes place at 1 pm New York time when total $32 billion of 7-year notes will be auctioned.
Still to Come:
WEDNESDAY: Weekly crude inventories; 7-year note auction
THURSDAY: Thanksgiving—all US financial markets closed
FRIDAY: Black Friday—US markets open but NYSE closes at 1pm ET.
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