By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks finished the week with
modest gains after a two-day rally helped indexes break a streak of
weekly losses. The main indexes trimmed year-to-date declines, and
some analysts are predicting an end to the pullback, which began
near the middle of January.
On Friday investors shrugged off disappointing January jobs
gains and instead focused on the more positive details in the
government's report. The unemployment rate ticked down while the
labor force participation rate edged up.
The Dow Jones Industrial Average (DJI) closed near session
highs, adding 165.55 points, or 1.1%, to 15,794.08. The blue-chip
index gained 0.6% over the past week, ending a two-week losing
streak. The S&P 500 (SPX) closed up 23.59 points, or 1.3%, at
1,797.02 and recorded a 0.8% weekly gain after three straight weeks
of losses. The Nasdaq Composite (RIXF) ended the day 68.74 points,
or 1.7%, higher at 4,125.86, gaining 0.5% for the week.
The U.S. economy added 113,000 jobs in January and the
unemployment rate fell to another post-recession low, of 6.6%, but
the pace of hiring appears to have slowed over the past few months,
according to new government figures.
Read the recap of our stock market live blog.
"The top line in the jobs report was weak but the details had
many positive aspects," said Paul Zemsky, chief investment officer
of Multi-Asset Strategies at ING U.S. Investment Management.
"The household survey side of the report, which we think leads
the businesses survey, was far stronger at 638,000 -- there is a
big discrepancy, so we believe the labor market is stronger than
what the headline number suggests," Zemsky said.
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"Also, the fact that the unemployment rate fell and labor force
participation rose is a good sign," he added.
Details in the report, including an increase in aggregate hours
worked and average weekly earnings, signaled a "reduction in
labor-market slack," said Millan Mulraine, deputy head of U.S.
research and strategy at TD Securities.
Expedia, Activision
Adding to the positive sentiment were upbeat earnings from
Expedia Inc. (EXPE). Shares surged 14% after the company's
quarterly profits beat estimates.
Shares of Activision Blizzard Inc. (ATVI) jumped 14%. The
videogame company reported a 51% decline in fourth-quarter profit
late Thursday, but shares rallied as adjusted results beat
expectations.
Apple Inc. (AAPL) shares rose 1.4% after the Wall Street Journal
reported the company bought $14 billion of its own shares in the
two weeks since reporting results that left investors
disappointed.
Shares of LinkedIn Corp. (LNKD) fell 6.2% after the social
network for professionals posted a weak outlook, though
fourth-quarter results topped analysts' forecasts late
Thursday.
Cigna Corporation (CI) shares tumbled 9.2% after the health
insurer's disappointing fourth-quarter earnings added to Wall
Street worries that insurers are getting squeezed by rising medical
costs.
In other markets, European stocks moved higher after the U.S
jobs data, while Asia closed broadly higher. The dollar rose
against the yen but fell against the euro on Friday.
Gold futures rose for the third straight day, gaining nearly 2%
over the week. Oil futures rallied, adding nearly 3% over the
week.
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