The U.S. stock market was mostly up for the day, after prices moved in both directions throughout the trading hours. The Dow closed up 196 points or 1.14%, while the S&P500 closed up 25.86 points or 1.30%.
The price movement in the market today was greatly influenced by the energy sector and the U.S. manufacturing reports.
Stocks opened higher in the early hours of trading, after European markets climbed following reassuring comments from France concerning Greece’s efforts to ease the terms of its financial rescue program. Those early gains were soon overcome by a downturn in the market, following poor U.S. manufacturing data. At mid-morning, it was reported that U.S. manufacturing expanded last month at the slowest pace in a year. Also, that was coupled with the fact that the Commerce Department reported that consumer spending edged lower in December as vehicle sales slowed and more Americans chose to save rather than spend.
By the end of the trading day, however, energy stocks rallied as Oil continued its positive run up. U.S. crude oil rose $1.33 to close at $49.57 a barrel in New York, its highest level in nearly a month.
The price swings from the lowest of the day to the highest of the day for the S&P500 was 2 percent, more than twice the average move over the past two years. This signifies that the market is still finding its way around today’s news and the global macro sentiment. U.S. investors have become accustomed to low volatility for so long, that this recent volatility is impacting investors sentiments about the overall market. Some investors are not sure where the market is headed, and uncertainty lies ahead.
Capitalist Square 