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.
Updated at 12:03 p.m. ET 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 Dow Jones Industrial Average ($INDU) was up 251 points at 13,130. The S&P 500 ($INX) was up 28 points at 1,393. The Nasdaq Composite ($COMPX) was up 65 points at 2,975.
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.
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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.
Companies don't have to pay benefits to contracted and part time workers.
- U1 : Percentage of labor force unemployed 15 weeks or longer.
- U2 : Percentage of labor force who lost jobs or completed temporary work.
- U3 : "Official" unemployment rate.
- U4 : U3 + "discouraged workers", or those who have stopped looking for work because current economic conditions make them believe that no work is available for them.
- U5 : U4 + other "marginally attached workers", or "loosely attached workers", or those who "would like" and are able to work, but have not looked for work recently.
- U6 : U5 + Part time workers who want to work full time, but cannot due to economic reasons.
ABS.......Annie's Horse is history, everyone knows that....Couldn't dance itself to the Podium.
Her horse became and epicurean delight in a few French restaurants....
It was always about her Two(2) Caddies....And she doesn't even know how to Golf.
And I hope you noticed that Endive and I, only insinuate or apply "colors" to inanimate objects.
We don't want anyone implying that we have underlying racial tones in our sarcasm....
that was it - Knight Capital - with the runaway computer accidently buying too much stock too fast.
this sets up a wonderful movie plot line: serious theft at the highest levels, government involvement, mega millions being swindled.
what's cool is in a movie we know it's FICTIONAL!
>>>Did Knight Capital get their 440 million infusion from JP Morgan? Something really fishy is going on again! Both of these firms have been embroiled in the thick of criminal activity over and over again since at least the 1920's.............do your homework people.<<<<
They funded this small , start up company in CT back in the 1990's.
It was called
STAPLES
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 ?
EVIL !!
As long as we have Mutt the Dog Odes and Anne's Horse Odes for the sake of "fairness"
THIS STORY HAS BEEN EDITED AND APPROVED BY THE ACLU/ ACORN FOR POLITICAL CORRECTNESS !
Barrack the RaCcoon
One day about a decade ago, while driving through Chicago, in my Mercedes S class Convertible, a RaCcoon suddenly jumped into the car.
I was very concerned about getting attacked , rabies, etc but the RaCcoon promptly introduced himself as a Jr. Senator from Chicago. He explained that he had to jump out the window of Tony Rezko's house because the cops were coming to bust poor, old Tony, for embezzlement !
Of Course Barrack the RaCcoon had nothing to do with it , he explained, he was just a guy from the neighborhood .I asked him why he just didn't jump into the beautiful , empty lot right next door to Rezko, instead of my car. He smiled and said don't worry about that , I got that covered! Drive on.
Still in a daze, I asked this RaCcoon how did he ever learn our language ? Barrack the RaCcoon said he has a college degree with very, very high GPA. and he has a very high IQ, to boot ! I became skeptical and I asked him to prove this point , he became very feisty, said sorry, his transcripts were sealed forever! Just take his word for it, he's real smart.
I asked where we are going and he said to Bill Ayers birthday party out in another suburb about 1 hour away.
Silence reigned for a few moments , when Barrack the RaCcoon suddenly asked if I would like to hear his I have a Dream, vision. You means dreams of finding my Daddy, Barrack ?
No, no - been there , done that.
What then, Mr. RaCcoon?
I have a dream ----
Hope and Change would be someday coming to Amerika and a vision of a welfare utopia where no people of color or even white trailer trash, ever needed to work ! His dream of taking the non tax payers from 49% of the population to 70 % of the population ! Illegal's would be welcomed with a red carpet ! Free medical and they never , ever, need to pay a dime in taxes for their entire lifetime ! Not one dime and they don't even need to learn English !.
(For the sake of "fairness", we must note Strawberries are only $3.00 a PINT !) Thank you , illegal's, thank you!
To continue on the I have a Dream moment of Barrack the RaCcoon --
No person of color should EVER have to pay one single dollar of taxes !
Of food stamps and welfare increasing 45% under his regime.
Of creating a communists utopia of state run auto industry and health care !
Of racist black people controlling the government. Our attorney general being one of them.
Of lesbian, communist leaning , supreme justices.
He told me our real leader is George Soros, super commie.
When I asked , how in the world can the 30% who work pay for the upkeep of the 70% who do not, he simply smiled and said -- Think , Greece!
But yes, Barrack, Greece is going belly -up, isn't it ?
He smiled and replied, you learn fast, don't you !
We arrived at Bill Ayers hose and the "Rev" Wrong came to the car, asked what Barrack was doing with a honky, looked at me and said G DAMM America !
I drove off, hoping to distance myself from Barrack the RaCcoon.
Yes, I learned many things from Barrack the RaCcoon that day , the best being not to trust him with your money.
After he got out , I noticed my wallet was missing and replaced with small "change" and a little card that said "hope".
oh, that Barrack the RaCcoon, I wonder where he ended up, these days?
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[BRIEFING.COM] Stocks entered the weekend on a mixed note as the S&P 500 shed 0.1% while the Dow ended with a gain of 0.1%.
The major averages began the day on a lower note as nine of ten sectors saw losses of more than 0.5%.
The consumer staples sector was the lone exception as the group spent the entire day in positive territory thanks to the relative strength of Dow component Procter & Gamble (PG 81.89, +3.19). The second-largest staple stock advanced ... More
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