NEW YORK, Dec 20: US blue-chip stocks ended at their highest level in 19 months for the fourth straight day on Friday, after a day of trading made choppy by the expiration of various derivative contracts, while bond prices slipped in a setback from three days of strong gains.

The reaction is very limited, and in the view of most traders, is a total non-event, said Keith Keenan, vice president of institutional trading at brokerage Wall Street Access. Most traders have become numb to it and look to buy any kind of sell-off related to that.

Oil prices fell as traders took profits after US crude prices this week hit their highest levels since the start of the Iraq war in March.

Gold also succumbed to profit taking after seesawing on the report of the possible terror threat.

Stock market players had been braced for heightened volatility due to the expiration of stock options, index options, index futures and single-stock futures.

This “quadruple witching” phenomenon occurs once each quarter on a Friday, and can trigger sudden moves in the market, as investors either exercise their positions or roll them forward at the last minute.

Today is mostly driven by the witch. That’s why it’s so choppy, said John O’Donoghue, co-head of listed trading at Credit Suisse First Boston.

The Dow Jones industrial average ended up 30.14 points, or 0.29 per cent, at 10,278.22, its highest level since May 17, 2002.

But other stock indexes declined. The broader Standard & Poor’s 500 Index eased 0.52 of a point, or 0.05 per cent, to 1,088.66.

The technology-laced Nasdaq Composite Index dipped 5.16 points, or 0.26 per cent, to 1,951.02.

The euro was around $1.2374, down 0.5 per cent from $1.2433 late Thursday, after reaching record highs of $1.2438 on Thursday, according to Reuters data. For the year, the euro is up roughly 19 per cent.

Against Japan’s yen, the dollar edged 0.3 per cent to 107.79 from 107.48 late Thursday in New York.

In bond markets, the 30-year US Treasury bond fell 10/32 to 106-1/32 for a yield of 4.97 per cent, up from 4.95 per cent on Thursday.

The benchmark 10-year note slipped 2/32 to 100-29/32 to yield 4.14 per cent, up from 4.13 per cent on Thursday.

The two-year note was virtually unchanged at 100-5/32, yielding 1.79 per cent.

Crude oil futures for January delivery at the New York Mercantile Exchange fell 69 cents to settle at $33.02 a barrel after hitting $33.93, which is up almost $4 from the start of December.

February crude, the coming front-month contract, also ended at $33.02, down 73 cents. London Brent fell 75 cents to close at $30.05 a barrel. —Reuters