US stocks surge on jobs growth news
Publish date: Sat, 09 Nov 2013, 07:37 AM
NEW YORK CITY: US stocks roared higher on Friday after jobs growth in October widely topped forecasts, lifting the Dow to an all-time closing high.
The Dow Jones Industrial Average surged 167.80 points (1.08 per cent) to 15,761.78, topping the blue-chip index's record close two days ago. The broad-based SandP 500 Index advanced 23.46 (1.34 per cent) to 1,770.61, while the tech-rich Nasdaq Composite added 61.90 (1.60 per cent) at 3,919.23.
Stock markets rebounded from Thursday's steep losses after the Labor Department reported the US economy added 204,000 jobs in October, double what analysts forecast, and revisions to the previous two months added another 60,000 jobs.
"Investors may have begun to price in expectations for when the Federal Reserve will begin its tapering process" for its monetary stimulus, Charles Schwab and Co. said in a market note.
There was good news, too, on personal incomes, which rose a more-than-expected 0.5 per cent in September, the Commerce Department reported separately, while personal spending edged up 0.2 per cent.
The positive data offset a fall in the University of Michigan's consumer sentiment index for November, to 72.0 from 73.2 in October.
Financial shares were in demand. On the Dow, JPMorgan Chase led the gainers, soaring 4.5 per cent. Goldman Sachs added 2.2 per cent and American Express rose 1.1 per cent.
Twitter dived on its second day of trade after a blockbuster Wall Street debut. Shares in the messaging service, which has not made a profit, dropped 7.2 per cent to close at US$41.65. On Thursday the stock shot up 73 per cent to US$44.90, from the initial public offering price of US$26.
Dow member The Walt Disney Co. surged 2.1 per cent after reporting a better-than-expected fiscal fourth-quarter, with earnings of 77 cents a share beating estimates by a penny.
McDonald's, another Dow member, slipped 0.2 per cent. The fast-food giant reported global comparable store sales rose 0.5 per cent in October.
"We cannot figure out how it can maintain any future growth at this rate, compared to the past decade," said Jon Ogg of 24/7 Wall St. -- AFP
The Dow Jones Industrial Average surged 167.80 points (1.08 per cent) to 15,761.78, topping the blue-chip index's record close two days ago. The broad-based SandP 500 Index advanced 23.46 (1.34 per cent) to 1,770.61, while the tech-rich Nasdaq Composite added 61.90 (1.60 per cent) at 3,919.23.
Stock markets rebounded from Thursday's steep losses after the Labor Department reported the US economy added 204,000 jobs in October, double what analysts forecast, and revisions to the previous two months added another 60,000 jobs.
"Investors may have begun to price in expectations for when the Federal Reserve will begin its tapering process" for its monetary stimulus, Charles Schwab and Co. said in a market note.
There was good news, too, on personal incomes, which rose a more-than-expected 0.5 per cent in September, the Commerce Department reported separately, while personal spending edged up 0.2 per cent.
The positive data offset a fall in the University of Michigan's consumer sentiment index for November, to 72.0 from 73.2 in October.
Financial shares were in demand. On the Dow, JPMorgan Chase led the gainers, soaring 4.5 per cent. Goldman Sachs added 2.2 per cent and American Express rose 1.1 per cent.
Twitter dived on its second day of trade after a blockbuster Wall Street debut. Shares in the messaging service, which has not made a profit, dropped 7.2 per cent to close at US$41.65. On Thursday the stock shot up 73 per cent to US$44.90, from the initial public offering price of US$26.
Dow member The Walt Disney Co. surged 2.1 per cent after reporting a better-than-expected fiscal fourth-quarter, with earnings of 77 cents a share beating estimates by a penny.
McDonald's, another Dow member, slipped 0.2 per cent. The fast-food giant reported global comparable store sales rose 0.5 per cent in October.
"We cannot figure out how it can maintain any future growth at this rate, compared to the past decade," said Jon Ogg of 24/7 Wall St. -- AFP
Discussions
Be the first to like this. Showing 13 of 13 comments
When Obama added 5 trillion debts....Bernanke open his mouth and whispered "taper" and the global stock market went berserk, interest rate on US govt bonds spiked up to almost 3% from 1.8%..and guess what happened??
Obama realized that he has to pay higher interest rates on the 5 trillion US Dollar debts and he cant afford to pay the sudden incremental spike in interest rate and so Obama decided to fire Bernanke for whispering "FED may taper" and replaced him with Janet Yellen who had broached the idea of negative interest rate on cash deposits with US banks...Imagine what will happen if US citizen has to pay bank interest rate to put their cash money as fixed deposit in the banks??
Just ask yourself...if you are deep into debts to your eyeballs just like the US, do you want interest rate to go up or interest rate to go down??? Do u want more pain or lesser pain???
2013-11-10 01:09
US is now Bananaland! This only reason US still powerful is its innovations like late Steve Jobs, Allen Musk etc! Without innovations US long gone! All financial systems run by crooks waiting to collapse! US only good spending money on military and latest toys! You know, I know US will eventually collapse! They can try to smart talk but the facts is purely in their faces, US cannot even pay interest on their 17 trillions debts! How long can they print 85 billions a month! Come January, they will face the reality that their national debts already beyond control! Obama can shout yes we can! But reality is no they cant!
2013-11-10 01:13
Obama slogan was " Yes, we can change" ..what he did was ..he "short changed the Americans"
2013-11-10 01:16
Obama worst than Bush! Question now how Obama manage to accumulate 5 trillions yet didn't even spend on military! Basically Obama did nothing to change US!
2013-11-10 01:19
After 5 years, honestly, did US fair better then or now! My answer is now is 5 times worst than 2008! We are all brainwash to think that the world economy is getting better but the reality is almost every countries balloon up their national debts! You may say Bolehland half trillion is shocking! But look further and you see almost every countries more or less the same! And we all know that US is the source of such exploding debts! Its only a matter of time, I suggest the rest of you including myself to prepare for the worst financial crisis ever hitting mother earth! If US collapse, the first country she will take down together is China! Why, because China is holding huge chuck of US national debt and 2nd, China totally dependent on US intellectual for its manufacturing! Whatever products come out of China is US innovations! South Korea is completely independent in its intellectual manufacturing capacity just like Japan!
2013-11-10 01:42
It will take a Great Depression for USA to balance the world economic divide. Re-balancing and the New World Economic is slowly shaping.The real culprit is the fiat money system aided by Rating Agencies. All these economic indicators are massaged figures and just noises.
The big picture for USA is Kicking the Can down the road until all the bubbles popped: State pension bubble, education finance bubble, fraudulent financial institution scandals surfacing, treasuries bubble. Ultimately let hyperinflation to deflate their debts. Another Brenton Woods agreement to restore world order to complete the transfer of power to the EAST.
Hopefully there will not be any charismatic leader who could resonate the economic sufferers for any UPRISING and cause any catastrophic global disaster. Dont imagine the WW1 or WW2 scenarios with much lives being killed. Actually USA ( under GB with Robert Rubin) has already won successfully in using Strong USD policy to buy cheapest things they can get. Conversely using mighty USD with its derivatives gearing, GB has caused Asian financial crisis and win the world over. But Karma has its cause and effect. The Wall Street Bankers connection with Treasuries abused their power and reaped so much golden eggs from their geese (their own Americans)that USA is trapped in quick sand pit.
The new world disorder will be linked to technologies that we are so dependent on nowadays. Imagine a banking system that went berserk and all of your money can disappear through a cyber attack. Can you function without internet? WW3 will be a technological war and not massive destructive nuclear bombs.
Just hypothesis. So guys take it as a like reading.
2013-11-10 10:56
Come January, Replicans and Democrats sit down to talk about their already balloon national debts! Maybe another 3 months of increasing debt limit! Maybe they already realise the time bomb almost pop! It wont be long for them to realise that paying interest on 17 trillions will take until the end of the world! Convert your USD to gold bars!
2013-11-10 12:13
Obama will go down in history for misleading americans! The only president that help to add 5 trillion debts and postponing financial nuclear time bomb!
2013-11-10 12:18
The moment US collapse, it will bring China with it! Its like you fail to pay for your house loan and your guarantor will also go down with you! So observe how US Dow move lately! The moment tapering talk pop up for sure Dow go down! They are trying hard not telling the rest of the world, they working hard just to pay interest on their trillion debts! How long can US lie to the rest of the world!
2013-11-10 12:28
Interesting, lets c on jan how US comes out with new plan. Gosh still have few piles of US dollar, guess better to convert to Gold.
2013-11-10 12:34
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Complete bull about US! One day say afraid of tapering down 100 points, next day say complete confidence about job growth up 100 points! Fund managers and analysts in US quote the same donkey stocks over and over daily! Its always Apple, Apple, Apple! Yet not a single one mention about Obama adding 5 trillions debts! US is nothing more that financial nucklear waiting to blow the whole financial world! So ignore all those optimistic talks! Try making money while you can!
2013-11-10 00:50