By Peter McKay
Signs of slowing job losses in the U.S. sparked the best one-day
gain in stocks in more than two weeks on Friday as investors bet
more aggressively on economic recovery.
The Dow Jones Industrial Average (DJI) ended 122.06 points
higher, up 1.2%, at 10,566.20, its best one-day rise in both point
and percentage terms since Feb. 16.
Standard & Poor's 500-stock index (SPX) gained 1.4%. Its
financial sector rose 2%, getting a boost after an afternoon report
showed borrowing by consumers unexpectedly climbed in January.
and
In the week's most widely anticipated economic release, the
Labor Department said nonfarm payrolls fell by 36,000 in February,
well below the drop of 90,000 expected by economists polled by
MarketWatch. and
The unemployment rate held steady at 9.7%, better than the 9.8%
rate economists expected.
The jobs report comes on the heels of recent readings of
manufacturing, service-sector activity, and retail sales that have
also shown improvement, reinforcing the view of many traders and
analysts that the U.S. economy is staging a gradual comeback.
"I think this number will set the tone for the whole month,"
said Alan Valdes, head of floor operations at the New York Stock
Exchange for Kabrick Trading. "I think you'll see volume pick up,
and a lot of portfolio managers that have missed out will feel like
now is the time to finally get in."
Volume on Friday improved compared to the previous two sessions,
though it still fell shy of the 2010 daily average around 5 billion
shares. Composite turnover in New York Stock Exchange-listed
companies hit 4.3 billion shares.
"I think we could see some sideways action next week to
consolidate some of these gains," said Tom Alexander, president of
Alexander Trading. "For the longer-term, though, all signs suggest
that the market is on the right track. The demand for stocks as an
asset is high, even if the economy still has some problems."
The Nasdaq Composite Index (RIXF) was up 1.5%, helped by a 3.9%
gain in Apple (AAPL) after the electronics maker said its iPad
tablet would be available in the U.S. on April 3.
It was a second-straight week of gains for the indexes. The Dow
average added 2.3% for the week, the S&P 500 gained 3.1%, and
the Nasdaq Composite climbed 3.9%.
Shares of Monster Worldwide Inc. (MWW) and other staffing and
job-search companies gained on Friday's jobs report. Monster jumped
3.8% while Robert Half International (RHI) climbed 4% and Manpower
Inc. (MAN) climbed 3.8%.
The Dow average was led by gains of more than 3% each in Alcoa,
Inc. (AA), Boeing Co. (BA) and American Express Co. (AXP)
shares.
Commodity prices also benefited from optimism about the economy
on Friday, with traders betting on increased demand. Crude futures
approached $82 a barrel, and the broad Dow Jones-UBS Commodity
Index was up 0.6%.
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
The U.S. Dollar Index (DXY), which measures the greenback versus
a basket of six overseas denominations, was flat. The cost of one
euro rose to $1.3609, up from $1.3591 late Thursday.
Treasury prices fell. The benchmark 10-year note was off 22/32
to yield 3.689%.