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U.S. stocks soar on jobs data; Dow up 1.23%

Published 02/03/2012, 04:45 PM
Updated 02/03/2012, 04:48 PM
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Investing.com - Strong jobs data sent stocks soaring to a three-and-a-half-year high on Friday, while robust demand for technology stocks also fueled gains.

The Dow Jones Industrial Average closed up 1.23%, the S&P 500 index was up 1.46% while the Nasdaq Composite index finished up 1.61% on Friday.

Earlier during the day, the Bureau of Labor Statistics reported that the economy added a net 243,000 nonfarm payrolls in January, well above market expectations for a gain of around 150,000.

Market watchers were ecstatic with the unemployment data.

"Spectacular," said Ron Florance, managing director of investment strategy for Wells Fargo Private Bank, according to Bloomberg.

"It's a very, very strong jobs number. It shows that companies have confidence that they see global demand growth through their products and services. That will support risk assets."

Technology stocks were hot as well due to strong fourth-quarter earnings as well as anticipation that the long awaited Facebook initial public offering will serve as a shot in the arm for the sector as a whole.

Leading Dow Jones Industrial Average gainers included Bank of America, up 5.23%, Caterpillar, up 3.27%, and Alcoa, up 3.26%.

Leading index losers included Procter & Gamble, down 0.87%, Merck, down 0.18%, and Johnson & Johnson, up 0.08%.

European indices rose as well.

After the close of European trade, the EURO STOXX 50 rose 1.49%, France's CAC 40 rose 1.52%, while Germany's DAX 30 finished up 1.67%. Meanwhile, in the U.K. the FTSE 100 closed up 1.81%.  

On Monday, Swiss unemployment figures and inflation data are due out as are numbers on German factory orders.

In the U.S. on Monday, the Federal Budget Balance is due out as well.





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