Stocks jump as US adds more jobs than expected
July payrolls increased by 163,000, though the unemployment rate rose. Average hourly earnings are up. A key index of nonmanufacturing business activity also beats forecasts.
By Andrea Tse and wire reports
Stocks surged Friday after government reports on employment and business activity for July came in better than expected.
The Labor Department reported that July nonfarm payrolls rose by 163,000, better than the expected 100,000. It was the biggest monthly gain since February. Average hourly earnings edged up by 2 cents to $23.52.
The unemployment rate rose to 8.3%, and the June nonfarm payrolls number was revised downwardly to 64,000. The jobless rate rose because the government uses two surveys to measure employment, The Associated Press explained. While a survey of businesses showed job gains, the unemployment rate comes from a survey of households, which showed fewer people had jobs. Economists say the business survey is more reliable.
The Institute for Supply Management's July nonmanufacturing index came in at 52.6 after a June reading of 52.1, CNBC reported. Economists had expected a reading of 52. A reading above 50 indicates expansion.
American International Group (AIG) reported second-quarter after-tax operating income of $1.9 billion, or $1.06 a share, topping analysts' estimates of 57 cents a share. Revenue rose 3% to $17.12 billion. The insurance giant repaid all of the loans it owed to the Federal Reserve as part of bailout funding it received in 2008 and 2009.
Procter & Gamble (PG) reported an increase in net income of 45% in its fourth quarter, helped by the sale of its snacks division. Excluding special items, earnings came in at 82 cents a share, exceeding estimates of 77 cents a share. Overall, revenue fell by 1% to $20.21 billion, missing Wall Street's target of $20.26 billion because of higher commodity costs and a strong dollar.
LinkedIn (LNKD) on Thursday met Wall Street's earnings expectations for its second quarter but beat on the top line. The company reported second-quarter earnings of 16 cents a share on revenue of $228.2 million. Analysts were expecting 16 cents a share on revenue of $216.28 million. LinkedIn expects third-quarter sales of $235 million to $240 million. Analysts expect $236.1 million.
Toyota (TM) on Friday posted profit for the April-June quarter of 290.3 billion yen ($3.7 billion), up from 1.1 billion yen a year earlier, and the automaker raised its sales target for the year. Toyota expects record sales in 2012 of 9.76 million vehicles, up from 7.95 million vehicles sold in 2011.
SAP (SAP) agreed to pay Oracle (ORCL) $306 million in damages over copyright infringement allegations. Oracle won a trial on the same issues two years ago and was awarded $1.3 billion in damages. A judge threw out the award, but the latest agreement clears the way for Oracle to ask an appeals court to restore the $1.3 billion jury award.
Bain Capital and Thomas H. Lee Partners are among several parties that have put in initial bids for McGraw-Hill's (MHP) education business, sources told Reuters. A deal could value the world's second-largest education company by sales at around $3 billion.
Sometime this year, we taxpayers will again receive another 'Economic Stimulus' payment. This is indeed a very exciting program, and I'll explain it by using a Q & A format:
Q. What is an 'Economic Stimulus' payment ?
A. It is money that the federal government will send to taxpayers.
Q.. Where will the government get this money ?
A. From taxpayers.
Q. So the government is giving me back my own money ?
A. Only a smidgen of it.
Q. What is the purpose of this payment ?
A. The plan is for you to use the money to purchase a high-definition TV set, thus stimulating the economy.
Q. But isn't that stimulating the economy of China ?
A. Shut up.
Below is some helpful advice on how to best help the U.S. economy by spending your stimulus check wisely:
* If you spend the stimulus money at Wal-Mart, the money will go to China or Sri Lanka .
* If you spend it on gasoline, your money will go to the Arabs
* If you purchase a computer, it will go to India , Taiwan or China .
* If you purchase fruit and vegetables, it will go to Mexico, Honduras and Guatemala
* If you buy an efficient car, it will go to Japan or Korea .
* If you purchase useless stuff, it will go to Taiwan .
* If you pay your credit cards off, or buy stock, it will go to management bonuses and they will hid it offshore
Instead, keep the money in America by:
1) Spending it at yard sales, or
2) Going to ball games, or
3) Spending it on prostitutes, or
4) Beer or
(These are the only American businesses still operating in the U.S. )
Go to a ball game with a tattooed prostitute that you met at a yard sale and drink beer all day!
30,000 of those jobs were in restaurants and bars! The type of jobs that shouldn't even be reported because 90% of their wage is tips!
Also, notice how the unemployment rate ticked UP to 8.3% and the news media is trying to push that aside with 'excuses' as to why that is happening........................here's a hint for the media and the rest of the world...............the unemployment rate is much, Much, MUCH higher than the numbers the government is reporting! It's more like around 20%! Hell, I have a friend who just got laid off after 34 years of loyal service to her company...........she's now working for tips!
Meanwhile, the national debt is at 16 trillion and rising!
They funded this small , start up company in CT back in the 1990's.
It was called
Today it employs over 90,000 people which is more jobs than Obuma could create in his lifetime.
Yes, that evil Bain Capital , can you imagine creating companies and jobs and wealth ?
This jobs report is actually probably great news for the markets - they get the best of both worlds; the number of jobs created was way above expectations. And on the other hand, with the increase in the UE rate, the Fed will be more likely to come through with more easing - something else the market is craving.
LA Times reports this morning of a new jersey trading company that "accidently" had their computer system buy a shid load of stock within 4 minutes that was supposed to occur over a few weeks. nearly taking that trading firm out of business.
shades of Terminator where 'we" let the computer run our national defense. the reality however is what we want computer control over is our financial lives. but the net result just may be the same as sc fi......
so how long until another accident as computers get used more and more for "cruise control" investing?
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[BRIEFING.COM] The stock market ended the holiday-shortened week on a mixed note as the Dow Jones Industrial Average shed 0.1%, while the S&P 500 added 0.1% with seven sectors posting gains.
Equity indices faced an uphill climb from the opening bell after disappointing quarterly results from Google (GOOG 536.10, -20.44) and IBM (IBM 190.04, -6.36) weighed on the early sentiment. Google reported earnings $0.15 below the Capital IQ consensus estimate on revenue of $15.42 ... More
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