💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

U.S. stocks higher after jobless data; Dow Jones up 0.57%

Published 03/01/2012, 09:53 AM
NDX
-
UK100
-
FCHI
-
DJI
-
DE40
-
STOXX50
-
JP225
-
HK50
-
C
-
BAC
-
PEUP
-
BB
-
TM
-
BIG
-
IXIC
-
Investing.com - U.S. stocks were higher on Thursday, as market sentiment was boosted by positive U.S. employment data and amid diminished expectations for further monetary easing by the Federal Reserve.

During early U.S. trade, the Dow Jones Industrial Average rose 0.57%, the S&P 500 index added 0.58%, while the Nasdaq Composite index advanced 0.56%.

The U.S. Department of Labor said earlier that initial claims for state unemployment benefits fell to 351,000, holding steady near the lowest level since March 2008.

Separate reports showed that the U.S. core personal consumption expenditure index rose broadly in line with market expectations in January, while personal spending and personal income both rose less-than-expected.

The data came one day after Federal Reserve Chairman Ben Bernanke dampened expectations for a third round of monetary easing in testimony before Congress, after he acknowledged the recent improvement in the labor market and said that higher oil prices could push up inflation.

Financial stocks were sharply higher as shares in Bank of America surged 2.13% and Goldman Sachs climbed 1.66%, while Citigroup and Goldman Sachs jumped 1.62% and 1.55% respectively.

According to the Wall Street Journal, Bank of America is planning to introduce a monthly fee for customers holding checking accounts unless they agree to bank online, buy more products or maintain certain balances.

Car makers added to gains with shares in General Motors climbing 1.92% the company accepted to form a global alliance with PSA Peugeot Citroen targeting a cut in annual costs of at least USD2 billion without plant closures or job cuts in Europe.

Ford saw shares soar 2.08% and Toyota advanced 0.22%.

Elsewhere, Wal-Mart gained 0.39% after the big-box retailer boosted its annual dividend by 9% to USD1.59 a share.

On the downside, shares in Research In Motion tumbled 2.51% after Jefferies & Co. said the Blackberry maker is likely to pre-announce poor February quarter results and forecast a weak May quarter due to falling sales.

Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 surged 1.25%, France’s CAC 40 jumped 1.35%, Germany's DAX advanced 1.25%, while Britain's FTSE 100 added 1%.

During the Asian trading session, Hong Kong's Hang Seng Index tumbled 1.35%, while Japan’s Nikkei 225 Index dipped 0.2%.

Later in the day, Ben Bernanke was due to testify for a second day before Congress.


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.