DIS, AA, and HD Leading Dow Higher. BAC Drags

Published on Thursday, 10 December 2009 13:39 Written by Christopher Lynn

New York, Dec 10^th (TradersHuddle.com) – Stocks moved higher as economic data encouraged investors that the economy is in recovery mode; however gains were tempered after a disappointing 30-year auction. The added economic optimism buoyed consumer discretionary stocks.

At 1:15 PM the Dow Jones Industrial Average was gaining 53.81 points, or 0.52%. The S&P 500 index was adding 5.58 points or 0.51%, while the NASDAQ was jumping 8.96 points or 0.41%.

The market has been higher all morning, after the Labor Department said the number of newly laid-off workers seeking jobless benefits rose by 17,000 last week but the four-week moving average, dropped by 7,750 to 473,750, its lowest level since September 2008. And a separate report showed the trade deficit shrank more than expected in October.

Consumer-discretionary stocks were the best performer among 10 key S&P sectors and also the best performer in the Dow Jones Industrial Average, as Disney (NYSE:DIS) was leading the Dow higher, with a gain of 3.53% to $31.42.

Alcoa (NYSE:AA) was jumping 2.14% to $13.36, making the aluminum producer, the second best Dow component. Shares moved higher as investors speculated that economic optimism will translate in higher aluminum demand.

Home Depot (NYSE:HD) was the third best performer in the Dow, gaining 1.85% to $28.06, the home improvement retailer, is benefiting as well from consumer discretionary strength.

Bank of America (NYSE:BAC) was the biggest drag in the Dow losing 1.36% to $15.18 as the Charlotte based bank has given back in the last 4 days all the gains that shares posted on the announcement that they will pay back the government bailout funds.