By Peter McKay
New data showing a slowing pace of U.S. job losses prompted a
broad-based gain in stocks Friday, led by recovery-sensitive
categories like energy, materials, retailers, and industrials.
The S&P 500 (SPX) gained 1%, helped by advances in every
sector except telecommunications, which slipped 0.3%.
The Nasdaq Composite Index (RIXF) was up 1.2%, helped by a 4.2%
gain in Apple Inc. (AAPL) after the electronics maker said its iPad
tablet would be available in the U.S. on April 3.
The Dow Jones Industrial Average (DJI) was up 82 points, or
0.8%, at 10526.22, led by gains of more than 2% each in Alcoa Inc.
(AA), Boeing Co. (BA), and American Express (AXP).
Exxon Mobil Corp. (XOM), Chevron Corp. (CVX), and J.P. Morgan
Chase (JPM) were also strong, up more than 1.5% each.
In the week's key economic release, the Labor Department said
nonfarm payrolls fell by 36,000 in February, compared with a
revised 26,000 drop in January. Economists polled by MarketWatch
were expecting a February drop of 90,000, partly due to severe
weather.
The unemployment rate held steady at 9.7%, better than the 9.8%
rate economists expected. and
The jobs report comes on the heels of recent readings of
manufacturing, service-sector activity, and retail sales that have
also shown improvement over prior months, reinforcing the view of
many traders and analysts that the U.S. economy is staging a
gradual comeback from its deep swoon.
"In many ways this is starting to look like a traditional
recovery, with one notable exception: Credit is still difficult to
obtain," wrote Bernie Baumohl, managing director at the Economic
Outlook Group in Princeton, N.J., in a note to clients.
Commodity prices also benefited Friday from optimism about the
economy, with traders betting on increased demand.
Crude futures approached $82 a barrel, and the broad Dow
Jones-UBS Commodity Index was up 0.6%.
Friday's news from overseas was more of a mixed bag for
investors.
The Greek parliament approved a 4.8 billion ($6.52 billion)
austerity package, seen as a prelude to any European Union aid for
Greece, while thousands of union members protested the measures on
the streets outside. Prime Minister George Papandreou is embarking
on a five-day tour of foreign capitals to persuade fellow EU
leaders to back Greece as it faces one of its worst economic crises
in its modern history. and
China's government announced a conservative budget for 2010 that
reinforces its gradual shift away from stimulus programs adopted
during the financial crisis, even as officials said they were still
committed to supporting economic growth.
Meanwhile, a report from the Nikkei newspaper said the Bank of
Japan may take further easing measures, news that sent the Nikkei
225 up in Tokyo and lifted the dollar against the Japanese yen.
and
In other markets, Treasury prices fell, with the 10-year note
off 21/32 to yield 3.685%. The dollar was mixed, improving versus
the Japanese yen but losing ground versus the euro.
Among stocks on the move, InterMune (ITMN) surged 57.5% after
the company said U.S. government regulators will review the new
drug application for its pirfenidone idiopathic pulmonary fibrosis
treatment next week.
Shares of Monster Worldwide (MWW) and other staffing and
job-search companies gained on the jobs report. Monster jumped 4.3%
while Robert Half International (RHI) climbed 3.5% and Manpower
(MAN) climbed 3.4%.