- 23Dec
(Reuters) - Investors managed to keep an upbeat outlook in light preholiday trade on Thursday as data buttressed views of steady economic growth, with stocks on track for a fourth straight week of gains.
New home sales and prices edged up in November, while consumer sentiment rose in December to its highest level since June, reports showed.Banking shares lagged as investors booked profits after a month-long rally that had sparked a nearly 17 percent rise in the KBW Bank index .BKX.
The index shed 0.8 percent on Thursday, as Bank of America Corp (BAC.N) lost 1.9 percent to $13.12 and JPMorgan Chase & Co (JPM.N) fell 0.4 percent to $42.01.
"The economic data still points to a slow and measured recovery in 2011, whether it is housing, jobs or manufacturing. The U.S. is in the midst of a slow recovery here," said Cort Gwon, director of trading strategies and research at FBN Securities in New York.
"It keeps up hopes, with the added liquidity from the government in 2011, it points to a solid market next year." President Barack Obama recently signed a measure to extend tax cuts and extend unemployment benefits -- considered another stimulus package.
In line with that outlook, the latest American Association of Individual Investors' survey found bullish sentiment rose 13.1 percentage points to 63.3 percent, as of December 23, a six-year high.
The Dow Jones industrial average .DJI gained 8.67 points, or 0.08 percent, to 11,568.16. The Standard & Poor's 500 Index .SPX dropped 1.79 points, or 0.14 percent, to 1,257.05. The Nasdaq Composite Index.IXIC shed 6.67 points, or 0.25 percent, to 2,664.81.
The S&P 500 rose Wednesday to its highest level since the collapse of Lehman Brothers more than two years ago.
Volume was light Thursday as Wall Street takes a break Friday for the Christmas holiday.
Retail stocks got a boost as Bed Bath & Beyond Inc (BBBY.O) rose 5.7 percent to $50.39 after topping profit estimates and forecasting a strong holiday season.
Fabric and crafts retailer Jo-Ann Stores Inc (JAS.N) jumped 32 percent to $60.25 after it agreed to a buyout by private equity firm Leonard Green & Partners for $61 per share.
The Morgan Stanley Retail index .MVR gained 0.5 percent.
Top U.S. memory chip maker Micron Technology Inc (MU.O) weighed on the Nasdaq. Its shares slipped 3.3 percent to $8 one day after it forecast lower pricing for NAND chips, which are used in smartphones and tablet computers.
Motorola Inc (MOT.N) spinoff Motorola Mobility Holdings Inc will replace Meredith Corp (MDP.N) in the S&P 500 index after the close on January 3, Standard & Poor's said. Meredith shares dipped 1.2 percent to $35.39.
In other data, jobless claims dipped but indicated that unemployment will stay high, consumer spending rose for a fifth month, and durable goods orders recorded their biggest increase since March.
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