Stocks closed higher, Friday, propelled by positive economic news including Labor Department data showing that employers added 155,000 new workers during December. A private report also found non-manufacturing businesses continued to expand last month while a measure of future factory activity rose in November. Nearly all industry sectors were trading higher, led by shares of energy and material companies. Technology stocks struggled most of the day -- weighed down by another slump for Apple (AAPL) -- only to rebound just before the bell.
Stocks moved higher in initial trading, Friday, gaining on market speculation that the latest jobs report showed the U.S. economy continues to improve but not so rapidly that the Federal Reserve will soon withdraw its bond purchases and other stimulus measures. Shares eased Thursday following two days of big advances after minutes from the most recent Federal Open Markets Committee meeting indicated several members of policy-setting panel believe the Fed should stop its bond-buying program as soon as this summer.
The S&P 500 (SPX) hit a five-year high while the Dow (US30) saw its biggest weekly gain since December 2011.
Unemployment Rate Unchanged
Job growth during December slowed slightly from upwardly revised levels for the prior month but still managed to meet Wall Street expectations for the period. The Labor Department, Friday, reported nonfarm employers added a net 155,000 workers last month, down from a 161,000 rise in November. The unemployment rate held steady at 7.8%.
Separately, the Commerce Department said factory orders were unchanged during November after rising 0.8% in October. Analysts polled by Reuters had expected a 0.4% increase. But the report also found orders for non-defense capital goods excluding aircraft -- often seen as a measure of business confidence and spending plans -- rose a brisk 2.6% in November.
ISM
Also, the Institute for Supply Management said its services index climbed 1.4 points to a 56.1 reading last month, reaching its best levels since February and easily topping analyst expectations for 54.2. Readings above 50 indicates expansion in the sector.
Commodities were mixed. Crude oil for February delivery reversed its earlier losses to settle 17 cents higher at $93.09 per barrel. February natural gas was up 9 cents to $3.29 per 1 million BTU. Gold ended lower, with February gold falling $25.70 to $1648.80 per ounce while March silver slipped 83 cents to $29.91 per ounce. March copper fell 3 cents to $3.69 per pound.
Here's Where The Markets Stood At Day's End
- Dow Jones Industrial Average up 43.85 (+0.33%) to 13,435.21
- S&P 500 up 7.10 (+0.49%) to 1,466.47
- Nasdaq Composite Index up 1.09 (+0.04%) 3,101.66
- Hang Seng Index down 0.29%
- Shanghai China Composite Index up 0.35%
- FTSE 100 Index up 0.70%
- (+) HNR, Finds more oil off the coast of Gabon, with its Saipem Scarabeo 3 well encountering a 72-feet oil column as well as another 123 feet of pay in stacked reservoirs in the Dentale Formation.
- (+) FOLD, Reports positive preliminary results from Phase II testing of its drug candidate to treat Pompe disease.
- (+) SCTY, Reports better-than-expected growth this year and projecting 60% growth in FY13.
- (+) SVU, Reportedly close to completing a sale of selected assets to Cerberus Capital.
- (-) ARAY, Announced plans to idle about 13% of its workforce. Also expects significantly lower Q2 and FY13 results.
- (-) CSTR, Said Chief Financial Officer J. Scott Di Valerio would succeed retiring CEO Paul Davis in three months.
- (-) FSLR, Downgrade by Raymond James, cutting its rating for the stock to Underperform from Market Perform.
- (-) SIMG, Lowers its Q4 revenue guidance below the analyst consensus.