US market ends 2013 on a high note

The US markets ended 2013 on a strong note on Tuesday with the Dow Jones Industrial Average and the S&P 500 rang out with record close, ensuring blue chips posted the biggest annual gain in 18 years. Speculation around the timing and scale of a Fed decision to begin scaling back - or tapering - its bond purchases was a dominant theme of financial markets throughout 2013. On the economy front, Chicago-area home prices rose 10.9 percent in October from a year ago, the best showing for the local market since December 1988. The S&P/Case-Shiller home price index also showed though, that compared with September, home prices in October fell 0.5 percent, following a month-over-month gain of 0.3 percent from August to September. The monthly decline ended a seven-month run in which local home prices rose compared to the previous month. US consumer confidence rose more-than-expected in December to hit a three-month high. The Conference Board, a market research group stated that its index of consumer confidence improved to 78.1 in December from a reading of 72.0 in November, whose figure was revised up from a previously reported 70.4. The Present Situation Index increased to 76.2 from 73.5. The Expectations Index increased to 79.4 from 71.1 last month. 

However, a closely watched economic indicator missed expectations in December after a steep decline in its gauge of demand. The Chicago Business Barometer declined to 59.1 last month from 63 in October. The monthly survey by the Institute for Supply Management-Chicago, better known as the Chicago PMI, polls purchasing managers in the retail, manufacturing and resource sectors, and is seen by traders and analysts as providing a look at national economic trends.

The Dow Jones Industrial Average added 72.37 points or 0.44 percent to 16,576.66, the S&P 500 was up 7.29 points or 0.40 percent to 1,848.36, while Nasdaq gained 22.39 points or 0.54 percent to 4,176.59.

Indian ADRs closed mostly in green on Tuesday; ICICI Bank was up 0.20%, Tata Motors was up 0.15%, Dr. Reddy’s Lab was up 0.11% and Wipro was up 0.08%. On the other hand, HDFC Bank was down by 0.34%.