Stock market today: Indexes close mixed as traders hold out hope for a Santa Claus rally

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• Indexes closed mixed on Thursday in their first trading day after Christmas.
• The mixed results come on the second day of a Santa Claus rally, the last five trading days of the year and first two in January.
• Meanwhile, new jobs data shows continuing claims have surged to a three-year high.

Stock indexes closed mixed on Thursday in their first trading session after Christmas, disrupting a so-called Santa Claus rally.

The Dow Jones Industrial Average gained around 29 points to close 0.1% higher, while the S&P 500 fell slightly to close nearly flat. The Nasdaq also fell slightly, down 0.1%.

The indexes’ mixed results come after two days of wins, the latter of which falls in the Santa Claus rally period.

The period is historically marked by big gains in the last five trading days of the year into the first two of January, with the S&P 500 gaining an average of 1.3% over the rally.

This year’s Santa Claus rally saw a strong start on Christmas Eve, with a nearly 400-point gain for the Dow and a 1.1% gain for the S&P 500, marking the benchmark index’s best Christmas Eve performance since 1974.

Traders have hoped the rally will help the market close out this year’s strong performance on a high note, setting up for a third year of big gains.

“When investors are on the ‘nice’ list, and Santa delivers a positive Santa Claus Rally return, the S&P 500 has generated an average January and forward annual return of 1.4% and 10.4%, respectively,” LPL Financial’s Adam Turnquist said in a Tuesday note.

Turnquist added that when stocks have traded lower during the period, both measures trend lower, with the S&P 500 typically trading near flat in January and seeing a forward annual return of 5%.

The latest jobs data, meanwhile, showed enduring unemployment is on the rise, with continuing claims surging to 1.91 million, marking their highest level in over three years.

Initial jobless claims came in at 219,000 for last week, below consensus estimates of 225,000.

Here’s where US indexes stood at the 4:00 p.m. closing bell on Thursday:

Here’s what else is happening: