Dow up 72 as better jobs picture boosts stocks

The blue chips break a 4-day losing streak as jobless claims fall. Gold and oil jump on Netanyahu's Iran warnings. Tech stocks rebound from Wednesday's losses. Research In Motion soars on earnings beat; Nike falls back as earnings slip.

By Charley Blaine Sep 27, 2012 12:33PM
Charley BlaineUpdated: 7:39 p.m. ET

Stocks enjoyed a solid rally today, the first of the week, as U.S. jobless claims showed a surprisingly large decline and investors cheered Spain's budgetary plans.

While jobless claims fell, the Labor Department also reported that job gains for the year ended in March were larger than thought. But the government also reported a decline in durable-goods orders that was made worse by a big decline in commercial aircraft orders. In addition, a new measure of second-quarter growth showed the big 2012 drought was already weighing on the economy.

Homebuilding, energy and technology stocks were among the market leaders today, a day after all had pulled back. Gold (-GC) and crude oil (-CL) moved higher in part because of worries about an Iranian-Israeli war and as the dollar fell against the euro and the British pound. Energy stocks were higher.

After the close, Research In Motion (RIMM) shares jumped $1.56, or nearly 22%, to $8.70 after reporting one-time charges of 27 cents a share. Wall Street was looking for 19 cents. Revenue was $2.9 billion, up 2% from a year ago. Nike (NKE) shares were off $2.09 to $93.91 after hours. The company reported a 12% profit decline, although revenue was up 10% to $6.67 billion. Worldwide future orders were up 6% from a year ago, but Nike's gross profit margin fell to 43.5% from 44.3% a year ago.

The Dow Jones industrials ($INDU) closed up 72 points to 13,486; the blue chips had been up as many as 109 points. The Standard & Poor's 500 Index ($INX) gained 14 points to 1,447, and the Nasdaq Composite Index ($COMPX) gained 43 points to 3,137. The Nasdaq-100 Index ($NDX) had risen 40 points to 2,822.

Article continues below.
Apple
(AAPL), the biggest influence on the Nasdaq-100, climbed $16.14 to $681.32, gaining back all it had lost on Wednesday. Amazon.com (AMZN) gained $6.92 to $256.59, and Google (GOOG) was up $3.04 to $756.50.

Today's gains left the major averages poised to finish September with decent gains, although the market looks to end the week lower.

The gains for the Dow and S&P 500 were their largest since Sept. 13. The Nasdaq's gain was its largest since Sept. 6.

The Dow heads into Friday, the last trading day of the month, up 3.1% for September. The S&P 500 is up 2.9%, while the Nasdaq is up 2.3%.

If the Dow ends September with a gain, it will be the 11th for the blue chips in the last 12 months, something not seen since March 1958 through February 1959.

Personal income, Chicago PMI, Michigan consumer confidence reports due
Friday offers a full plate of economic reports, including reports on personal income and spending, the Chicago Purchasing Managers Index and the University of Michigan Consumer Sentiment Index.

Earnings are due from American Greetings (AM) and pharmacy retailer Walgreen (WAG).

American Greetings shares were up 34 cents to $17.01 after an investment group led by CEO Zev Weiss and his family on Wednesday offered $17.18 a share for the company, a 20% premium over Tuesday's close.

Futures trading suggests a modestly higher open for stocks on Friday.

Natanyahu speech boosts gold, energy prices
Precious metals and energy prices were higher today, in part because of the United Nations speech of Israeli Prime Minister Benjamin Netanyahu., who said Iran could have enough enriched uranium for a nuclear weapon by next summer.

The possibility of Iran’s possession of a nuclear weapon was a threat not only to Israel but to the entire world, Netanyahu said, and added that the failure to establish "red lines" for Tehran could lead to war. Netanyahu has been arguing for months that Iran must be stopped.

Thanks to his speech, gold settled up $26.90 to $1,780.50 an ounce.

Crude oil in New York settled up $1.87 to $91.85 a barrel, and futures of heating oil, natural gas and wholesale gasoline jumped as well. Brent crude, the benchmark North Sea oil that tends to move global oil prices, was up $2.19 to $112.36 a barrel.

The national average retail price of gasoline was down a penny to $3.795 a gallon, according to AAA's Daily Fuel Gauge Report.

Energy prices -- New York close



Thur.

Wed.

Month chg.

YTD chg.
Crude oil (-CL)

$91.85

$89.98

-4.79%

-7.06%
(per barrel)











Heating oil (-HO)

$3.1508

$3.1025

-0.92%

8.12%
(per gallon)











Natural gas (-NG)

$3.2970

$3.2150

17.79%

10.30%
(per mil. BTU)











Unleaded gasoline (-RB)

$2.8972

$2.8738

-2.54%

9.02%
(per gallon)











Brent crude 

$112.01

$110.04

-2.23%

4.31%
(per barrel)











Retail gasoline

$3.7950

$3.8050

-0.89%

15.84%
(per gallon; AAA)












More spending cuts for Spain
The Spanish government proposed significant spending cuts that would trim budgets for each of its ministries by an average 8.9%. The overall effect would be to trim Spain's budget deficit to 4.5% of gross domestic product, down from 9% in 2011, The Wall Street Journal said.

Not only would the central government's spending be controlled, the government is proposing to control provincial spending more tightly as well. The moves would be made so Spain can apply for and win a financial bailout from the European Union, the European Central Bank and the International Monetary Fund.

The budget announcement came after several days of protests that were often violent. While bond investors were cheered, it's not clear the Spanish people are. The country already has Europe's highest unemployment rate, and it will probably go higher.

Tempur-Pedic will buy Sealy
The day featured a deal: Tempur-Pedic International (TPX) has agreed to acquire mattress company Sealy (ZZ) in a deal valued at $229 million. Sealy shareholders will receive $2.20 a share, a premium of 2.8% to Wednesday's close. Including debt assumption, the deal is valued at about $1.3 billion.

Wall Street likes the move. Tempur-Pedic was up $3.86 to $30.64. Sealy added 5 cents to $2.19.

A bias to the upside
Twenty-four of the 30 Dow stocks were higher, led by General Electric (GE), Intel (INTC) and Bank of America (BAC). Wal-Mart Stores (WMT) and AT&T (T) were the laggards.

Meanwhile, 408 S&P 500 stocks were higher. First Solar (FSLR), Discover Financial Services (DFS) and MetroPCS Communications (PCS) were the leaders. Printer R.R. Donnelly (RRD) and spice-maker McCormick & Co. (MKC) were the laggards.

Ninety Nasdaq-100 stocks were higher, led by Green Mountain Coffee Roasters (GMCR) and Avago Technologies (AVGO). Game-maker Activision Blizzard (ATVI) and Costco Wholesale (COST) were the laggards.

Jobless claims falls; drought hits GDP
The jobless-claims report was the day's cheery news. Claims fell 26,000 to a seasonally adjusted 359,000, the lowest level since mid-July. The four-week moving average dropped to 374,000 from 378,500. The moving average smooths out week-to-week changes.

At the same time, the Labor Department now reckons the American economy created 386,000 more jobs -- or 0.3% -- in the 12 months to March than previously thought. White House economic adviser Alan Krueger said the revision indicated that the United States had added nearly 5.1 million private-sector jobs, on a net basis, over the past 30 months.

The new estimate is something the Labor Department does annually. The revision has averaged 0.3% since 2000, according to the Liscio Report, which tracks government spending patterns.

Meanwhile, the final read on second-quarter gross domestic product showed growth of 1.3%, weaker than an expected 1.7%. Analysts said the impact of the drought was the biggest factor in the downward revision.

At the same time, August durable-goods orders tumbled 13.2%, much more than the 5% drop expected. A decline in orders at Boeing (BA) were the big driver for the decline, but other sectors showed weakness as well.

Short hits from the markets -- New York close



Thur.

Wed.

Month chg.

YTD chg.
Treasury yields











13-week Treasury bill

0.0900%

0.100%

0.00%

800.00%
5-year Treasury note 

0.638%

0.612%

7.05%

-23.13%
10-year Treasury note

1.640%

1.618%

4.99%

-12.35%
30-year Treasury bond

3.032%

3.032%

12.97%

4.95%
Currencies











U.S. Dollar Index

79.592

79.948

-2.00%

-1.15%
British pound

1.6239

1.6176

2.21%

4.51%
(in U.S. $)

 








U.S. $ in pounds

£0.616

£0.618

-2.16%

-4.32%
Euro in dollars

$1.29

$1.29

2.54%

-0.31%
(in U.S. $)

 








U.S. $ in euros

€ 0.774

€ 0.777

-2.48%

0.31%
U.S. $ in yen 

77.76

77.74

-0.93%

0.86%
U.S. $ in Chinese

6.32

6.30

-0.63%

-0.03%
yuan











Canada dollar

$1.020

$1.016

0.57%

3.98%
(in U.S. $)

 








U.S. dollar 

$0.981

$0.984

-0.57%

-3.83%
(in Canadian $)

 








Commodities

 

 

 

 
Gold (-GC)

$1,780.50

$1,753.60

5.50%

13.64%
(per troy ounce)

 








Copper (-HG)

$3.744

$3.710

8.30%

8.96%
(per pound)

 








Silver (-SI)

$34.6660

$33.9400

10.25%

24.18%
(per troy ounce)

 








Wheat (-ZW)

$8.5550

$8.6925

-3.82%

31.06%
(per bushel)

 








Corn (-ZC)

$7.1625

$7.248

-10.44%

10.79%
(per bushel)

 








Cotton 

$0.7153

0.7102

-7.42%

-21.98%
(per pound)

 








Coffee

$1.7430

1.6945

5.80%

-24.10%
(per pound)

 








Crude oil (-CL)

$91.85

$89.98

-4.79%

-7.06%
(per barrel)










 

473Comments
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The numbers are misleading. There are thousands of people that are no longer eligible for unemployment, that don't even show up on the radar. If everyone that was out of work and looking for employment were counted, the unemployment rate would be over 20%.

 

Truly sad how the government and the liberal media can spin lies to tell us what they want us to hear...

Wake up SHEEPLE.

Sep 27, 2012 12:52PM
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Jobless news is good?????????  New claims at 360,000??????  What in the hell is wrong with that picture??????

 

Incredible how bad news for 4 years (regardless of the occupant in the White House) has become ok news.  My Lord.....how this country is so screwed up.

 

When all of the benefits begin to be adjusted or plain 'run out' because of lack of funds, take a good look in the mirror America.  The image that you see is the one that all of the blame should be directed at.

 

You know, I did not vote for President Obama....didn't care for him then and still don't.....but I supported him as my President when he was elected and hey "if he can turn things around, wonderful"....."I'm all for that," I said.

 

I didn't realize that he is nothing but a 'thug' and a 'liar'......and a good liar at that.

 

He demonized and demorialized Mrs. Clinton in the Democratic Primaries in 2008.  He is a politician, no  more, no less.  He has failed us as our President.

 

I am amused when I see all of the support for our 'Golden Boy' Bill Clinton.....he allowed his wife to be attacked and humiliated during that campaign and now he 'stumps' for the President....Most amusing is that the Morons in America support and love him.

 

Incredible.....I am ashamed at times to be an American.  We are quickly becoming a 'third world country'....again, take a look in the mirror.

Sep 27, 2012 12:50PM
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Lies, Lies, Lies and more lies.............Lot's of people falling off of unemployment and no jobs to be found anywhere..........not even temp jobs!  Went to the temp agency yesterday and the place was jam packed!

 

GDP has been revised down again, china's central bank is pumping money into their system now, Riots in Greece, Spain, Portugal and reports of people eating out of trash bins.  Massive reports of thousands being layed off of their high paying jobs at good companies but not to worry, Walmart, Kohls, and Target are hiring up to 150,000 part-time, temporary, minimum wage workers for the holiday season.  And, last but not least, the fiscal cliff is looming dead ahead.

 

Let's not forget folks, THE GOVERNMENT WANTS ALL TO WORK UNTIL WE REACH THE RIPE OLD AGE OF 70-80'S OLD!

Sep 27, 2012 12:54PM
avatar
The extent that the media/Obama administration is going to......well all I can say is...do they think Americans don't know that sotres are hiring part time employees for the Holiday? Do they also think that Americans wages have been decreased by some, half? Do they also think we dont know that some unemployment has run out? So tired of the lies!
avatar
don't get too excited, next week the jobless claims will be revised upwards to where it really is, just like it's revised every week.  such bs.  media pushes obama every day.  fact is, if he is elected it is only because things are so far in the crapper that people will vote for the one that they feel will give them what they need, not the one that might put them to work so they could earn a living
Sep 27, 2012 12:54PM
avatar
The Obama media zombies continue the charade of linking two exclusive events as relational.  Why not offer that Obama brings sunshine to the world because it rises every day.  Pathetic.  The jobless rate has been wrong for years and has nothing to do with the market.
Sep 27, 2012 2:54PM
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How do you expect a person that has never held a private sector job to actually create one?
Sep 27, 2012 2:58PM
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You libs are dumb as a rock.Ask any business owner what they think about this idiots policies and you will find out why our economy sucks.I know about 20 people that all own their own business and everyone of them says were screwed with this pathetic president.It's all the lazy **** free riders that are voting for this moron and cancelling out a real working persons vote.Why do you think Oblah blah let all the illegals be citizens so we could have more free loaders and he could have more votes.   
Sep 27, 2012 1:14PM
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PLEASE GIVE US THE TRUTH !!!!!!!  Do not give what either party doles out !  Just plain old truth !

  It might choke things up but  I was taught it is better to tell the truth  than to keep lying, because sooner or later the truth will come out anyway !!!!  tired of all the lies an half truths we hear from our leaders , time for it to end!

Sep 27, 2012 2:38PM
avatar
I'm tired of these guys running for president who never had a real job. I can't think of one president who ever had one. All senators and governors ever do is sit around and shoot the bull. Make it a prerequisite for candidates to have at least ten years full time experience at a real job. I'm talking waiter, grocery clerk, teacher, cop, factory worker, etc..
Sep 27, 2012 3:30PM
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Wow Charley Blaine!! Does it even pain you a little to report such nonsense and flawed data like everything is just peachy??  Q2 GDP came in revised down 1.25% this morning lower then even the lowest estimate!  The real doozy was the durable goods order number...after being down last month already, this mornings number came in at 13.2% which is just awful and the worst since Jan of 2009!  Even the CNBC pundits were shocked at this and calling them recessionary numbers.  The jobs number is barely even mentionable compared to these and we know the jobs numbers are always manipulated to the upside anyway.  

The news this morning showed that our economy is still screwed, money printing isn't working, and we are ready for a major tumble now that the FED has exacerbated it. But you needed something to explain why the markets were up???  News flash the markets no longer correlate with the economy, they have become a hot air balloon for speculators backed by the FED's funny money and now longer represent how our economy is doing...if they ever did.  Maybe dig deep inside that crusted corporate soul you have and report real news if you have the marbles, and quit sugar coating everything.

The market rallied not because of a jobs number!!  It rallied because of rumors that China will start easing policies just like our FED, that gets the Hedge funds and speculators buying and blowing more hot air in this balloon to nowhere, just like they have been the last 4 years.   But no by all means tell us more about all those thriving jobs out there.....then maybe tell my friends because they are still looking for them.
Sep 27, 2012 2:46PM
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I said this earlier,All Government Pensions,Fed,State and local pensions should not be available till 62 years of age just like soc.sec.   This will save the taxpayers Trillions and its alot more fair than raising the age of soc.sec. to five years after most people are dead.
Sep 27, 2012 3:01PM
avatar

Thumbs up Obama sucks

Thumbs down Obama blows
Sep 27, 2012 3:36PM
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yea! Only 359,000 new jobless claims this week! 

Let's go to Vegas and then jet on over to NY and tell Letterman!
Sep 27, 2012 3:47PM
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Just checking to see if there truly is intelligent life left in this country. People actually believe that "Hope and Change" has happened. First let me point out I am not racist, just a realist. Every working person in this country has a goal, retirement. It is unrealistic to hope that social security will be there intact as it is now for all of us.

We were warned two decades ago that we would need to find other ways to secure our individual futures, that is why employers started offering 401K and other retirement supplements. Investing in the markets will be the only way to secure a decent retirement. This president and his administration appear to be against individuals or business' succeeding. We need someone on our side. Obama certainly is not that man. Everyone in this country should see the movie 2016 to get a full picture. The "mainstream media" as it were, never even advertised this movie or even talked about it during news broadcasts so we the people (sheep, lemmings or whatever they want to treat us as) could make are own informed decision as to what is truth or fantasy in this movie. Romney may not be the new messiah but he is a business man with the knowledge and connections to get this stagnated economy moving again which will help all of us trying save for our future security. The fact of the matter is Romney can convince the banks, the wealthy investors and so on to loosen their purse strings getting people back to work, by letting up on regulations and repealing Obamacare. This may sound selfish but the utopian dreams that Obama has is just that - a dream. The only Utopia we will ever have is upon our deaths. This is the real world with winners and losers, what would be the point of life if we did not strive to better ourselves. (Yes Timmy, team did lose the T-Ball game.) We need to remember the "Golden Rule - Those who have the Gold Make the Rules" and money does flow from the top down. Our president seems to believe that it should flow from the middle out. It has never happened that way and never will. Again Utopia?

Sep 27, 2012 1:38PM
avatar
DUUUUH, how many dropped off the dole? and have quit looking??  Funny how they don't follow up with that statistic, huh?
Sep 27, 2012 1:22PM
avatar
WHAT A JOKE......NO NEW JOBS IN DELAWARE.
Sep 27, 2012 3:39PM
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You have to remember the people doing these polls only count the people who are seeking unemployment benefits. They do not count the people out of work who have ran out of benefits or the people who have given up on seeking a job. Look at all the large corporations, small corporations that are laying off. People young and old had better wake up! You haven't seen bad yet, but its coming if the election goes democratic!

Sep 27, 2012 2:26PM
avatar

There is no unemployment but there is nobody working.

Use your welfare money to buy the iphone5.

Sep 27, 2012 1:17PM
avatar

Where are they getting these jobs they claim to have? The reason the claims have gone down is the unemployment has ran out and it shows that the jobless is down, when in actuality it is just the opposite. Ask someone on the street looking for a job to try to feed their family if the jobless is getting better.!!!!!!

 

Give it a thumbs down and then show us where the jobs are!

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