Stocks Open '09 With Rally

Updated from 4:15 p.m. EST

Stocks on Wall Street started the new year on a positive note Friday, posting solid gains in the first trading session of 2009.

Though volume was on the light side, the Dow Jones Industrial Average added 258.30 points, or 2.9%, to 9035, and the S&P 500 gained 28.55 points, or 3.2%, to 931.80. The Nasdaq added 55.18 points, or 3.5%, to 1632.21.

Alcoa (AA Quote), up 7.6% at $12.11, and GM (GM Quote), which added 14% to $3.65, led the gainers on the Dow. All 30 stocks in the index rose.

Oil-service stocks were among the bright spots in New York trading, with Schlumberger (SLB Quote) adding 7.7% to $45.57 and Halliburton (HAL Quote) up 7% to $19.45. Baker Hughes (BHI Quote) advanced 7.1% to $34.33. The Philadelphia Stock Exchange Oil Service Sector index was up 7.6% at 130.57.

At the same time equities rallied, longer-dated U.S. Treasury securities were falling hard. The 10-year was down 1-26/32 to yield 2.40%, while the 30-year was sinking 3-19/32, yielding 2.81%.

"It was all equity market-movement related," says Mary Ann Hurley, vice president and bond market analyst at DA Davidson, of the selloff in the fixed-income arena. As soon as stocks posted gains, the longer-term Treasuries reacted, she says, despite the light volume. "We're definitely equity-market contained right now."

Investors closed 2008 with a small win on Wednesday, but also with historic losses for the year. In its worst year since 1931, the Dow gave up 33.8%, ending at 8776. The S&P fell 38.5% to 903, and the Nasdaq lost 40.5% to 1577.

< Previous

1 2 3 4

Next >