Cebu_4_2
6th December 2013, 06:50 AM
US stocks rally; Dow surges on positive jobs report
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Published: Friday, 6 Dec 2013 | 9:49 AM ET
By: Kate Gibson (http://www.cnbc.com/id/101137435) | Markets Writer
U.S. stocks ran sharply higher on Friday, with the S&P 500 bouncing back after a five-session drop, after the November jobs report came in better than expected.
"It was a really good jobs report. There were a lot of positives in there. Besides the unemployment rate getting down to 7 percent, manufacturing jobs are at their best level in over a year. Construction jobs being higher again is always good for the economy," said JJ Kinahan, chief market strategist at TD Ameritrade.
The government's jobs report found 203,000 jobs were added in November (http://www.cnbc.com/id/101252720), with the jobless rate falling to 7.0 percent. Analysts polled by Reuters had expected that 180,000 jobs were created last month, with unemployment marginally lower at 7.2 percent.
But Kinahan did not think the data moved any cuts in stimulus by the Federal Reserve into December.
"We do have this Fed meeting coming up, but that's right over the Christmas holidays. It would be odd timing," he said.
Name
Price
Change
%Change
DJIA (http://data.cnbc.com/quotes/.DJI)
Dow Jones Industrial Average
15938.58
117.07
0.74%
S&P 500 (http://data.cnbc.com/quotes/.SPX)
S&P 500 Index
1798.79
13.76
0.77%
NASDAQ (http://data.cnbc.com/quotes/.IXIC)
Nasdaq Composite Index
4056.66
23.49
0.58%
Halting a five-session losing streak, the Dow Jones Industrial Average (http://data.cnbc.com/quotes/.DJI) rose sharply, with all of its 30 components gaining.
The S&P 500 (http://data.cnbc.com/quotes/.SPX) also rallied, with financials fronting sector gains that extended to all 10 of its major industry groups.
The Nasdaq (http://data.cnbc.com/quotes/.IXIC)'s climb had it nearly clearing its loss for the week.
The dollar edged higher against currency rivals and the 10-year Treasury yield declined 2 basis points to 2.86 percent, after leaping to 2.9 percent in the immediate aftermath of the report.
The CBOE Volatility Index (VIX), a gauge of investor uncertainty, fell below 14.
Plosser: Friday's jobs report clearly positive
Charles Plosser, Philadelphia Fed president, shares his reaction to the latest employment numbers from the Labor Department. I don't get too excited over one number, Plosser added.
Data on Thursday showed the economy grew faster-than-expected in the third quarter (http://www.cnbc.com/id/101249335), fueling fears the Fed could start tapering (http://www.cnbc.com/id/101044631) before year ends, rather than in first quarter 2014.
(CNBC Explains: Tapering (http://www.cnbc.com/id/101044631))
In corporate news, American Eagle Outfitters (http://data.cnbc.com/quotes/AEO) forecast current-quarter profit under expectations, with the teen-apparel retailer citing holiday discounts. Its shares fell sharply.
Text Size
Published: Friday, 6 Dec 2013 | 9:49 AM ET
By: Kate Gibson (http://www.cnbc.com/id/101137435) | Markets Writer
U.S. stocks ran sharply higher on Friday, with the S&P 500 bouncing back after a five-session drop, after the November jobs report came in better than expected.
"It was a really good jobs report. There were a lot of positives in there. Besides the unemployment rate getting down to 7 percent, manufacturing jobs are at their best level in over a year. Construction jobs being higher again is always good for the economy," said JJ Kinahan, chief market strategist at TD Ameritrade.
The government's jobs report found 203,000 jobs were added in November (http://www.cnbc.com/id/101252720), with the jobless rate falling to 7.0 percent. Analysts polled by Reuters had expected that 180,000 jobs were created last month, with unemployment marginally lower at 7.2 percent.
But Kinahan did not think the data moved any cuts in stimulus by the Federal Reserve into December.
"We do have this Fed meeting coming up, but that's right over the Christmas holidays. It would be odd timing," he said.
Name
Price
Change
%Change
DJIA (http://data.cnbc.com/quotes/.DJI)
Dow Jones Industrial Average
15938.58
117.07
0.74%
S&P 500 (http://data.cnbc.com/quotes/.SPX)
S&P 500 Index
1798.79
13.76
0.77%
NASDAQ (http://data.cnbc.com/quotes/.IXIC)
Nasdaq Composite Index
4056.66
23.49
0.58%
Halting a five-session losing streak, the Dow Jones Industrial Average (http://data.cnbc.com/quotes/.DJI) rose sharply, with all of its 30 components gaining.
The S&P 500 (http://data.cnbc.com/quotes/.SPX) also rallied, with financials fronting sector gains that extended to all 10 of its major industry groups.
The Nasdaq (http://data.cnbc.com/quotes/.IXIC)'s climb had it nearly clearing its loss for the week.
The dollar edged higher against currency rivals and the 10-year Treasury yield declined 2 basis points to 2.86 percent, after leaping to 2.9 percent in the immediate aftermath of the report.
The CBOE Volatility Index (VIX), a gauge of investor uncertainty, fell below 14.
Plosser: Friday's jobs report clearly positive
Charles Plosser, Philadelphia Fed president, shares his reaction to the latest employment numbers from the Labor Department. I don't get too excited over one number, Plosser added.
Data on Thursday showed the economy grew faster-than-expected in the third quarter (http://www.cnbc.com/id/101249335), fueling fears the Fed could start tapering (http://www.cnbc.com/id/101044631) before year ends, rather than in first quarter 2014.
(CNBC Explains: Tapering (http://www.cnbc.com/id/101044631))
In corporate news, American Eagle Outfitters (http://data.cnbc.com/quotes/AEO) forecast current-quarter profit under expectations, with the teen-apparel retailer citing holiday discounts. Its shares fell sharply.