Stocks Gain On Jobs Data
NEW YORK (CNNMoney) — U.S. stocks rose Friday following a better-than-expected report on the nation’s job market.
The Dow Jones industrial average, the S&P 500 and the Nasdaq were all up about 0.4%.
Hewlett Packard was the worst performer on the Dow after PC-maker on Wednesday lowered its outlook for fiscal 2013. Home Depot, Du Pont and Boeing were among the top performers on the blue-chip index.
The Labor Department’s monthly report showed employers added 114,000 jobs in September, better than the 110,000 economists surveyed by CNNMoney had expected. And the unemployment rate dropped to 7.8%, falling below 8% for the first time since early 2009.
Investors welcomed the jobs data, particularly the decline in the unemployment rate, but remain concerned about the health of the economy.
“The bottom line is that the economy appears to be grinding along at a pace that is universally unsatisfying, and well short of the pace needed to ramp up the still lackluster pace of job creation and promote better household income growth,” said Jim Baird, chief investment strategist for Plante Moran Financial Advisors, in a note to clients.
Later in the day, the Federal Reserve will release data on August consumer credit, which is expected to have expanded by $5 billion, according to a survey of analysts by Briefing.com.
World Markets: European markets were also higher. Britain’s FTSE 100 rose 0.7%, the DAX in Germany added 1.3% and France’s CAC 40 gained 1.7%.
Asian markets posted gains for the day. The Hang Seng in Hong Kong rose 0.5%, while Japan’s Nikkei ended 0.4% higher. Markets in Shanghai were closed this week for a holiday.
Companies: Shares of social gaming firm Zynga plunged 17%, following the company’s announcement that it was lowering its 2012 guidance.
Facebook shares shed more than 3%, a day after company declared 1 billion people use Facebook.
Shares of Sprint rallied 3% following reports that the company may be seeking a competing big for MetroPCS.
Currencies and commodities: The dollar rose against the euro and British pound and Japanese yen.
Oil for November delivery fell $1.54 to $90.17 a barrel.
Gold futures for December delivery dropped $7.50 to $1,789.00 an ounce.
Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing up the yield to 1.73% from 1.66% from late Thursday.
By CNNMoney Staff
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