Stocks Close Down on First Trading Day of 2014

U.S. stocks fell on their first day of trading in 2014, as investors booked profits after the market’s strong rally in 2013. The Dow Jones Industrial Average declined 135.31 points, or 0.8%, to 16,441.35. The S&P 500 index dropped 16.38 points, or 0.9%, to 1,831.98. The Nasdaq Composite fell 33.52 points, or 0.8%, to 4,143.07.

U.S. mortgage rates rose to the highest since September, increasing borrowing costs for homebuyers as prices climbed across the country. The average rate for a 30-year fixed mortgage was 4.53 percent this week, up from 4.48 percent, according to a statement today from Freddie Mac.

U.S. construction spending rose to its highest level in nearly five years in November as a surge in private construction projects offset a drop in public outlays. Construction spending increased 1 percent to an annual rate of $934.4 billion, the highest level since March 2009, the Commerce Department said on Thursday.

Gold futures on Thursday jumped by nearly $23 an ounce while silver prices led percentage gains among the precious metals following reports of physical buyers looking for bargains after the metals suffered their worst year of trading in decades. Gold for February delivery rose by $22.90, or 1.9%, to settle at $1,225.20 an ounce on the Comex division of the New York Mercantile Exchange, while silver for March delivery
gained 76 cents, or 3.9%, to end at $20.13 an ounce.