Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

U.S. stocks rise on jobs, service-sector data, Dow gains 0.33%

Published 01/04/2013, 04:47 PM
Updated 01/04/2013, 04:48 PM
NDX
-
UK100
-
FCHI
-
DJI
-
DE40
-
STOXX50
-
MSFT
-
AA
-
DIS
-
MRCG
-
IXIC
-
CCF
-
Investing.com - Stronger-than-expected data out of the U.S. service sector and a solid December jobs report sent U.S. stock prices climbing on Friday.

At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.33%, the S&P 500 index was up 0.49%, while the Nasdaq Composite index rose 0.04%.

In the U.S. earlier, the Bureau of Labor Statistics reported the U.S. economy added 155,000 nonfarm payrolls in December, beating market calls for the economy to create 150,000 new jobs.

In addition, the U.S. employment rate remained unchanged at 7.8% last month, though markets had hoped for a decline to 7.7%.

Meanwhile, the Bureau of Labor Statistics revised October's figures to 137,000 from 138,000 new jobs and hiked November's figure to 161,000 from 146,000.

Elsewhere, the U.S. Institute of Supply Management reported earlier that its non-manufacturing index improved to 56.1 in December from 54.7 in November, beating expectations for a rise to 54.2.

While the data failed to send investors charging into a full-fledged risk-on trading session due to question marks looming on U.S. fiscal and monetary horizons, the numbers were strong enough to send investors snapping up stocks, viewed by many as nicely priced these days.

Congress will debate raising the government's debt ceiling possibly in February.

Fears that lawmakers may stage a repeat performance of 2011's debt-ceiling debates, which nearly threw the country into default thanks to brinkmanship, kept some investors sticking with safe-haven dollar positions, especially on sentiment the jobs market is not improving fast enough to suggest the economy may be returning to its pre-recession health.

Uncertainty as to when the Federal Reserve may wind down its monetary stimulus programs also pushed down the pair.

The Fed revealed in the minutes of its December monetary policy meeting that some members are ready to consider paring back the  U.S. central bank's monthly USD85 billion bond-buying program, which weakens the greenback as a side effect.

Leading Dow Jones Industrial Average performers included Alcoa, up 2.09%, Walt Disney, up 1.91%, and JPMorgan Chase & Co., up 1.77%.

The Dow Jones Industrial Average's worst performers included Microsoft, down 1.87%, McDonald's Corp., down 0.86%, and Merck, down 0.85%.

European indices, meanwhile, finished higher.

After the close of European trade, the EURO STOXX 50 rose 0.30%, France's CAC 40 rose 0.24%, while Germany's DAX 30 finished up 0.26%. Meanwhile, in the U.K. the FTSE 100 finished up 0.70%.








Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.