US stock market drifts upward

December 30, 2010 | 10:50

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US stock markets drifted upward on Wednesday, eking out fresh gains that kept the Dow index at two-year highs.

With little driving the market except momentum, the Dow Jones Industrial Average rose 9.84 points (0.09 per cent) to 11,585.38 at the close.

"Despite a clear lack of interest among traders on the Street with volume anemic as some remain on holiday breaks and the New Year approaches, the US equity markets are drifting higher to add to the solid gains for 2010," said analysts at Charles Schwab.

The broader S&P 500 index gained 1.27 points (0.10 per cent) to 1,259.78.

The NASDAQ rose 4.05 points (0.15 per cent) to 2,666.93.

McDonald's led the Dow upward. Its shares were up 0.9 per cent.

The oil and energy sector also posted strong gains amid cold weather in Europe and North America.

The bond market rose as traders reacted positively to an auction of seven-year bonds, after a similar event on Tuesday saw weak demand for five-year Treasuries.

The yield on 10-year Treasuries fell to 3.41 per cent from 3.48 per cent late Tuesday, while that of the 30-year bond was down to 4.41 per cent from 4.55 per cent. Bond prices and yields move in opposite directions.

AFP

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