MARKET SNAPSHOT: Dow Ekes Out Gain For Its 37th Record Of 2014

By Anora Mahmudova and Carla Mozee, MarketWatch

Weekly jobless claims drop to lowest level in 7 weeks

NEW YORK (MarketWatch) -- The Dow Jones Industrial Average eked out another record close on Wednesday, but a late selloff cost the S&P 500 a fresh mark.

The S&P 500 (SPX) erased earlier gains and closed down less than a point at 2,081.88 in the holiday-shortened session, ending its five-day winning streak. But the Dow Jones Industrial Average (DJI) eked out a 6-point gain to 18,030.21, closing at a record level for the 37th time this year. The Dow closed above 18,000 for the first time ever on Tuesday.

The Nasdaq Composite (RIXF) closed with a gain of 8.05 points, or 0.2%, at 4,773.47.

Christmas Eve traditionally is one of the lightest trading days of the years. Investors wrapped up the trading day early, with both the New York Stock Exchange and the Nasdaq Stock Market closing at 1 p.m. Eastern Time. The markets will remain closed Thursday for Christmas Day, and will reopen Friday with normal hours.

A steeper-than-expected drop in the weekly jobless claims, on the heels of a surprisingly strong update on third-quarter economic growth kept the mood positive early, said Colin Cieszynski, chief market strategist at CMC Markets.

The number of people who applied for U.S. unemployment-insurance benefits fell by 9,000 to 280,000 in the week that ended Dec. 20, a seven-week low and only modestly above a 14-year low.

The Dow at 18,000 before the end of 2014 is "extremely encouraging", considering the so-called "January effect" or the idea that "markets will rally even more when we get in to 2015, as investors pile back in to the equity market," said Neal Gilbert, senior market analyst, at Forex.com, in a Tuesday note.

The Dow at 20,000 by February may be a stretch, but not entirely out of reach, said Gilbert.

"As bold as I'd like to get, the daily trendline resistance indicates that 20,000 won't be achieved until late [third quarter of 2015], so we may have a little time to wait before we start breaking out our Jules Verne-themed balloons," he wrote.

Oil: Crude prices added to earlier losses after a report from the Energy Information Administration showed an unexpected rise in U.S. oil inventories, confirming late Tuesday data from the American Petroleum Institute, which showed crude inventories rose 5.4 million barrels last week.

Oil prices, which have been volatile in recent weeks on oversupply concerns, moved lower on Wednesday. West Texas Intermediate crude futures for February delivery (CLG5) fell about 2%, to $55.78 a barrel. Brent crude futures also dropped nearly 2%, to about $60 a barrel.

Movers: Biotech stocks rebounded after a harsh selloff on Tuesday. Celgene Corp (CELG) as the biggest gainers on the S&P 500, rising 3.3%.

Energy companies were hit once more, as crude-oil prices resumed their decline. Noble Corporation PLC(NE) and Chesapeake Energy Corp.(CHK) were among the top decliners, falling 3.2% and 2.2% respectively.

GoPro Inc.(GPRO) climbed 7.9% on Thursday and has gained 23% since Monday, when a 180-day lockup period expired.

Shares of Cal-Maine Foods Inc.(CALM) dropped 3.9% after the company reported disappointing results for its fiscal second quarter on Tuesday.

Other markets: In Asia, Japan's Nikkei Average rose 1.2%, while Hong Kong's Hang Seng Index ended up a more modest 0.1%. European stock markets ended mixed ahead of the Christmas break. Gold futures (GCG5) fell $3.60 to $1,174.4 an ounce.

Also read: When do markets close on Christmas Eve?

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