Stocks climbed on Thursday on optimism about global growth spurred by stronger-than-expected exports in China, the world’s second-biggest economy, though gains in the Standard & Poor’s 500 were capped at a resistance level near a five-year high.
Reuters reported that financial and energy stocks were the day’s top gainers in afternoon trading. The financial sector index .GSPF rose 0.8 per cent and the energy sector .GSPE was up 0.6 per cent.
The benchmark S&P’s 500 index hovered near a five-year closing peak of 1,466.47. On Friday, the index had closed at its highest since December 2007.
“The market is technically right at the level of resistance, near 1,465-1, 467,” said Randy Frederick, managing director of active trading and derivatives at Charles Schwab.
“A solid breakthrough above the level would be the start of a next leg higher, but it looks like it is going to be difficult to break above that level for now,” Frederick said, citing concerns about the corporate earnings season and impending negotiations over the US debt ceiling.
By late morning, the S&P 500 had erased almost all its gains from earlier Thursday in minutes. Some traders said the dip was triggered by a trade in the options market that prompted a large amount of S&P futures to hit the market at the same time, sending the S&P 500 index down rapidly.
Data showed China’s export growth rebounded sharply to a seven-month high in December, a strong finish to the year after seven straight quarters of slowdown.
The Dow Jones industrial average was up 36.20 points, or 0.27 per cent, at 13,426.71. The S&P’s 500 Index was up 5.11 points, or 0.35 per cent, at 1,466.13. The Nasdaq Composite Index was up 0.05 points, or 0.00 per cent, at 3,105.86.
In company news, shares of upscale jeweler Tiffany dropped 4.3 per cent to $60.53 after it said earnings for the year through January 31 will be at the lower end of its forecast.
US-traded Nokia shares jumped 18 per cent to $4.42 after the Finnish handset maker said its fourth-quarter results were better than expected and that the mobile phone business achieved underlying profitability.