Trading volume was low again on the first trading session of 2009 sending markets into the green. The Dow Jones Industrial average ended 258 points higher and closed at 9,034 points. The Nasdaq composite index was up 55 points and closed at 1,632 points. The S&P 500 was up 28 points and finished at 931 points. The three major indexes have gone up over 6% for the week. The Russell 2000 index was 6 points higher and closed at 505 points. Overseas, Britain’s FTSE 100 was up 2.88% and Japanese markets were closed due to a holiday. Investors seem to have started to New Year with some optimism.
On the NYMEX, oil prices settled at $46.40 per barrel for the day. As in the equity markets, analysts believe light trading is sending crude prices higher as many traders have been on holiday vacation. Heating oil and gasoline futures both saw a rise today, finishing at $1.47 and $1.11 respectively. The price of natural gas was also slightly higher, adding $0.38 to close at $6.01 on Friday.
The manufacturing index for the Supply Management fell from 36.2 to 32.4, which is the lowest it’s been since 1980. A slowing economy and worried consumers has led to lower demand and thus lower output of nearly every product.
Seven investors scooped up the leftovers of IndyMac Bank for $13.9 billion. The team of investors formed the IMB Management Holdings LP and reached a deal on Wednesday. They plan to close by the end of March.
As for corporate news, Dynegy Inc. (DYN: 2.38, +0.38 (+19.00%)) saw a rise in share price after it ended a development venture with LS Power Associates LP due to the tight credit markets. Oshkosh Corp. (OSK: 10.30, +1.41 (+15.86%)), which specializes in making specialty trucks and other vehicles, won a contract to supply services to the U.S. government. The contract is worth $1.12 billion.
-Hassan Chaudhry
Disclosure: None.
