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U.S. stocks gain on solid jobs, sentiment data; Dow rises 1.26%

Published 12/06/2013, 04:15 PM
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Investing.com - U.S. stocks shot up on Friday after the November jobs report and a widely watched gauge of consumer sentiment beat expectations and fueled hopes for a more robust economic recovery around the corner.

At the close of U.S. trading, the Dow Jones Industrial Average rose 1.26%, the S&P 500 index rose 1.12%, while the Nasdaq Composite index rose 0.73%.

The Department of Labor reported earlier that the U.S. economy added 203,000 jobs in November, beating expectations for a 180,000 increase and up from a downwardly revised 200,000 rise the previous month.

In the private sector, 196,000 jobs were added last month compared to expectations for a 180,000 rise, after an increase of 214,000 in October.

The report also said the U.S. unemployment rate fell to 7.0% in November, from 7.3% in October, beating expectations for a downtick to 7.2%.

Also on Friday, the preliminary Thomson Reuters/University of Michigan consumer sentiment index increased to 82.5 in December from 75.1 the previous month, far surpassing expectations for a 76.0 reading.

Stocks also rose on sentiment that despite the improving data, the Federal Reserve won't begin to taper stimulus tools such as monthly bond purchases in December but will likely wait until early 2014.

Stimulus tools such as the Fed's USD85 billion in monthly bond purchases drive down interest rates to spur recovery, boosting stock prices in the process, though talk of their dismantling can dampen stock prices by fanning uncertainty as to how equities will perform without a monetary crutch.

Leading Dow Jones Industrial Average performers included Intel, up 2.25%, Procter & Gamble, up 2.22%, and DuPont, up 2.04%.

The Dow Jones Industrial Average's worst performers included Visa, which was up 0.04%, JPMorgan Chase, up 0.41%, and Wal-Mart Stores, up 0.64%.

European indices, meanwhile, finished higher.

After the close of European trade, the EURO STOXX 50 rose 0.97%, France's CAC 40 rose 0.72%, while Germany's DAX 30 rose 0.96%. Meanwhile, in the U.K. the FTSE 100 finished up 0.83%.









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