Stocks Prices Climb After Jobs Report
By THE ASSOCIATED PRESS
Filed at 12:15 p.m. ET
NEW YORK (AP) -- The government's latest employment figures weren't as good as expected Friday, but investors apparently decided they were good enough and sent stocks sharply higher.
The Labor Department reported the unemployment rate fell 0.1 percent to 5.6 percent last month to its lowest level since October 2001. The economy created 112,000 new jobs in January, and while analysts and economists had been expecting a higher number, the report was enough to motivate buyers who had been dormant for more than two weeks.
``There were some solid gains in the report,'' said Hugh Johnson, chief investment officer at First Albany Corp. ``You can no longer characterize the current recovery as a jobless recovery. It's a job-creating recovery.''
At midday, the Dow Jones industrial average gained 63.04, or 0.6 percent, to 10,558.59 after falling more than 20 points shortly after the session began.
Broader stock indicators were also higher. The Standard & Poor's 500 index rose 9.04, or 0.8 percent, at 1,137.63, and the Nasdaq composite index jumped 27.94, or 1.4 percent, to 2,047.50.
The economy had not created that many jobs in a single month since December 2000, near the peak of the last bull market. The lower-than-expected job creation could be a boon to investors fearing an interest rate increase by the Federal Reserve, as well as those who have part of their portfolio in bonds.
``It's a Goldilocks report -- not too hot and not too cold,'' Johnson said. ``When you have interest rates declining and stock prices rising, like we do today, you get a great return on a balanced portfolio.''
In the meantime, companies added fuel to buying with strong earnings reports. |
