Dow jumps 136 on improved jobs data

Stocks surge on improved private-sector employment; jobless claims slip. Starbucks, AIG and Priceline earnings impress. Crude is up in New York but down in London.

By Charley Blaine Nov 1, 2012 12:52PM
Charley BlaineUpdated: 7:52 p.m. ET

Stocks started November with their best performance in seven weeks, thanks to two decent jobs reports and an improved outlook on manufacturing. 

If there was a downside to the rally, it was that the major averages pulled back from their early highs. The Dow Jones Industrial Average ($INDU) jumped as many as 177 points, fueled by gains for IBM (IBM) and Caterpillar (CAT), but then profit-taking set in.

Private-sector employers added 158,000 jobs in October, the ADP National Employment Report estimated, better than expected, and the Labor Department said initial jobless claims fell to 363,000 last week, down from 372,000 the prior week and smaller than the consensus estimate of 369,000. The Labor Department will release its October jobs report at 8:30 a.m. ET Friday. The unemployment rate is expected to rise slightly from 7.8% to 7.9%, with payroll employment rising by about 125,000 jobs.

After the close, shares of Starbucks (SBUX) jumped $3.35 to $49.97 from a regular close of $46.62. The coffee-shop giant's fiscal-fourth-quarter earnings of 46 cents a share beat the Street estimate of 45 cents. Revenue was up 11% to $3.36 billion and in line with estimates. Also moving higher because of strong earnings: Priceline.com (PCLN) and American International Group (AIG).

The Dow closed up 136 points to 13,233. The Standard & Poor's 500 Index ($INX) gained 15 points to 1,428. The Nasdaq Composite Index ($COMPX) jumped 43 points to 3,020, its first close above 3,000 for the index since Oct. 22.

Article continues below.
The Nasdaq-100 Index ($NDX), which tracks the largest Nasdaq stocks, jumped 40 points to 2,688. The index had been up as many as 43 points.

Apple (AAPL), the biggest influence on the Nasdaq-100, was up $1.22 to $596.54 after peaking at $603 at 11 a.m. ET. Apple's Wednesday close of $595.32 was its first below $600 since July 30.

The Dow and the S&P 500 had their best one-day gains since Sept. 13. The Nasdaq's performance was its best since Sept. 6.  Materials, industrials and technology stocks were the market leaders.

Contributing factors to today's gains included a gain in Chinese manufacturing activity after two months of contraction. The official October manufacturing PMI came in at 50.2, slightly lower than the forecast of 50.3 -- but higher than the 50-point level, the government said. The HSBC Purchasing Managers Index was a 49.5, up from 47.9. At the very least, HSBC said, industrial activity in China has bottomed. The economy should recover slowly.

Also helping were gains in consumer confidence and auto sales.

The one group that didn't participate today: utility stocks. They fell as interest rates moved higher. The 10-year Treasury yield rose to 1.715% from 1.686% on Wednesday.

The market gains came even as earnings from Exxon Mobil (XOM) fell from a year ago. Revenue was off 7.7% to $115.71 billion, still enough to be roughly the size of the gross domestic product of Vietnam.  The decline was due to lower oil and natural gas prices  Shares, however, were up 43 cents to $91.60.

Energy shares were largely higher as crude oil (-CL) in New York settled up 85 cents to $87.09 a barrel. Brent crude, however, settled down 53 cents to $108.17 a barrel.

The average national retail price of gasoline was $3.507 a gallon, according to AAA's Daily Fuel Gauge Report. That's down from Wednesday's $3.521 a gallon. But because of power problems at gasoline terminals, there have been gasoline shortages around the New York area and in New Jersey.

Gold (-GC) settled down $3.60 to $1,715.50 an ounce.

Energy prices -- New York close



Thur.     Wed.

Month chg.

YTD chg.
Crude oil (-CL)

$87.09

$86.24

0.99%

-11.88%
(per barrel)











Heating oil (-HO)

$3.0332

$3.0623

-0.95%

4.08%
(per gallon)











Natural gas (-NG)

$3.699

$3.6920

0.19%

23.75%
(per mil. BTU)











Unleaded gasoline (-RB)

$2.6336

$2.6303

0.13%

-0.90%
(per gallon)











Brent crude 

$108.17

$108.70

-1.26%

0.74%
(per barrel)











Retail gasoline

$3.5070

$3.5210

-0.40%

7.05%
(per gallon; AAA)












Markets are still recovering from the aftermath of Superstorm Sandy, which wreaked havoc up and down the Eastern Seaboard. The storm forced financial markets to close Monday and Tuesday, and nearly 5 million people are still without power.

Trading could still be volatile, Reuters noted, with many traders and money managers unable to reach their offices because of power and gasoline shortages and limited mass transit.

Sandy hits auto sales
Sandy's fury caused U.S. auto sales to fall short of expectations in October, but industry executives still see a strong fourth quarter as the housing market improves. Sales came in at a seasonally adjusted annual rate of 14.29 million units, up 7.1% from a year ago but down 4.35% from September, according to market researcher Autodata.

While General Motors (GM) and Chrysler Group reported their strongest sales for October since the 2007-09 financial crisis, the massive storm that hit the U.S. East Coast took as much as 30,000 vehicle sales out of the mix.

The storm turned what was expected to be a big month for auto sales into a mere healthy month, TrueCar.com analyst Jesse Toprak told Reuters.

Ford Motor's
(F) October sales edged up 0.4%. Sales for Toyota Motor (TM) and Honda Motor (HMC) rose about 16% and 9%, respectively. Nissan (NSANY) sales fell 3.2%.

GM was up 18 cents to $25.68. Ford added 9 cents to $11.25. Toyota added 58 cents to $78.05 in New York. Honda was up 19 cents to $30.35. Nissan rose 18 cents to $16.90 in New York.

Winners and losers
JDA Software Group (JDAS), a maker of supply-chain management software, soared $6.61 to $44.76 after it agreed to be bought by privately held rival RedPrairie Corp. for about $45 a share, or $1.9 billion, in cash.

Pfizer (PFE), which delayed the release of its quarterly results because of the storm, posted revenue that fell far short of expectations, sending shares down 32 cents to $24.55.

Teen-apparel retailer Zumiez (ZUMZ) shares fell $4.19 to $21.13 after the teen retailer cut fourth-quarter guidance on weaker-than-expected October same-store sales. The company blamed a challenging sales environment in Europe. October same-store sales rose 0.6%. Street analyst forecasts were for a same-store sales increase of 4.6%. Zumiez now expects to earn between 38 and 39 cents per share, down from its prior view of 42 and 45 cents.

Macy's
(M) climbed  $2.45 to $40.52. The second-biggest U.S. department-store chain boosted its forecast for same-store sales in the second half of the year to a 4% gain compared with the year-ago period. The company had previously estimated an increase of 3.7%.

Ross Stores (ROST) dropped $3.82 to $57.13, second-worst among the S&P 500 stocks after Teredata (TDC). The operator of apparel and home-accessories stores said sales rose 4%, missing the average projection for a 4.3 % gain from analysts surveyed by researcher Retail Metrics.

Target (TGT) fell 81 cents to $62.94. The second-biggest U.S. discount retailer posted a 2.4% increase in same-store sales, missing the 2.9 % estimate.

Abercrombie & Fitch
(ANF) climbed $2.65 to $33.23. The teen-clothing retailer didn’t update its sales figures. The absence of pre-announcement "may mean more limited downside risk, and could provide relief" to the stock, UBS analyst Roxanne Meyer wrote in wrote in a note to clients.

Manufacturing expands in October
Manufacturing in the U.S. expanded in October at a faster pace than projected as orders and production picked up, showing the industry is stabilizing.

The Institute for Supply Management’s factory index climbed to 51.7 last month, the highest since May, from 51.5 in September. Economists estimated 51 for October. A reading of 50 is the dividing line between growth and contraction.

The report shows American factories are holding up amid a global economic slowdown that’s weakened manufacturing from Asia to Europe. At the same time, companies such as Cummins (CMI) are feeling the effects of the so-called fiscal cliff that’s prompted cutbacks in equipment purchases.

Short hits from the markets -- New York close



Thur.

Wed.

Month chg.

YTD chg.
Treasury yields











13-week Treasury bill

0.0900%

0.110%

-18.18%

800.00%
5-year Treasury note 

0.726%

0.715%

1.54%

-12.53%
10-year Treasury note

1.714%

1.686%

1.66%

-8.39%
30-year Treasury bond

2.894%

2.851%

1.51%

0.17%
Currencies











U.S. Dollar Index

80.136

79.987

0.19%

-0.48%
British pound

1.6129

1.6137

-0.05%

3.81%
(in U.S. $)

 








U.S. $ in pounds

£0.620

£0.620

0.05%

-3.67%
Euro in dollars

$1.29

$1.30

-0.17%

-0.13%
(in U.S. $)

 








U.S. $ in euros

€ 0.773

€ 0.771

0.17%

0.13%
U.S. $ in yen 

80.16

79.80

0.45%

3.97%
U.S. $ in Chinese

6.24

6.23

0.09%

-1.37%
yuan











Canada dollar

$1.004

$1.000

0.35%

2.32%
(in U.S. $)

 








U.S. dollar 

$0.996

$1.000

-0.35%

-2.34%
(in Canadian $)

 








Commodities

 

 

 

 
Gold (-GC)

$1,715.50

$1,719.100

-0.21%

9.49%
(per troy ounce)

 








Copper (-HG)

$3.552

$3.5175

0.98%

3.38%
(per pound)

 








Silver (-SI)

$32.248

$32.316

-0.21%

15.52%
(per troy ounce)

 








Wheat (-ZW)

$8.6850

$8.645

0.46%

33.05%
(per bushel)

 








Corn (-ZC)

$7.5100

$7.558

-0.63%

16.16%
(per bushel)

 








Cotton 

$0.7021

$0.701

0.20%

-23.42%
(per pound)

 








Coffee

$1.5345

$1.547

-0.78%

-33.18%
(per pound)

 








Crude oil (-CL)

$87.09

$86.240

0.99%

-11.88%
(per barrel)










 

649Comments
Nov 1, 2012 2:51PM
avatar
OH,don't forget,we've got get the oil prices booming again to yank out all the short and curlies come the holiday drive time ! !
Nov 1, 2012 2:46PM
avatar
This kind of reporting is absolutely despicable. Lies. All of it. Propaganda. You need 90,000 jobs added per month just to keep up with population growth. Plus, the figure supplied here is not defined. These are seasonal jobs. Seasonal means temporary. Why does the press lie so much? Why does the government lie so much? Because the truth is that the country is in a terrible way. Things have gotten so bad that the liars want to talk about the glass being either half full or half empty, not fully broken. Shame on America.
Nov 1, 2012 2:44PM
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Hey Right Wing Punks ohhh I mean Pundits.

Nice employment numbers huh! and that's with no help from the filibuster say no GOP congress
Nov 1, 2012 2:39PM
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YAAAAAYYYYYY ! ! ! ! The "revised expectations" and fantasy data have pooofed in and saved the market today !! Can't wait until January when the unemployment fillings explode,should be fun !!
Nov 1, 2012 2:36PM
avatar

"According to MoveOn.org, the two minute long ad is a "moving, inspirational message." 

"We will burn this m*****f****r down," one elderly woman says in the ad. 

Another woman threatens to "track down" Mitt Romney and give him a "c**k punch, right in the n*t sack" if Republicans "steal the election." 

"Liberals think violence is funny," Jim Hoft wrote at the Gateway Pundit. "Especially when they’re talking about beating Republicans."


Now you'll hear the Obama Campaign insist they had nothing to do with it, which is true, but don't hold your breath waiting for them to demand that it be taken down..............................

Nov 1, 2012 2:34PM
avatar
Mike your portfolio is up so much because the Fed is pumping in miilions of our dollars every minute the market is open. This is insanity!!
Nov 1, 2012 2:32PM
avatar
Anyway have to go get some work done so I can help support you rightwing trailer trash whacks.
Nov 1, 2012 2:30PM
avatar
Love seeing Republicans upset over this while investors like me reap the rewards. Keep screaming "the sky is falling", and telling us how you avoid the market. Since Obama took office, my portfolio has tripled... while cry-baby Republicans have avoided the market and made no money. You will never move out of your trailer park, and that makes me smile.
Nov 1, 2012 2:30PM
Nov 1, 2012 2:30PM
avatar

Stay classy...LIBTARDS




MoveOn.org, with the help of Michael Moore, produced a very graphic ad that is "not safe for work" and advocates violence if Mitt Romney wins the November election, The Right Scoop reported Monday.

 

According to MoveOn.org, the two minute long ad is a "moving, inspirational message." 

"We will burn this m*****f****r down," one elderly woman says in the ad. 

Another woman threatens to "track down" Mitt Romney and give him a "c**k punch, right in the n*t sack" if Republicans "steal the election." 

"Liberals think violence is funny," Jim Hoft wrote at the Gateway Pundit. "Especially when they’re talking about beating Republicans."

Nov 1, 2012 2:29PM
avatar
Poverty level jobs abound. We're saved!!!!
Nov 1, 2012 2:28PM
avatar

Jef Wrote:

EMPTY HEAD IS MAD BECAUSE HE DID NOT GET A JUICE BOX AND A COOKIE.===

 

 

Good for you, Jeff keep your head buried up your A$$

Nov 1, 2012 2:27PM
avatar
Lots of Nervous Republicans on here today. It doesnt look good for us next Tues.
Nov 1, 2012 2:26PM
avatar

MK Wrote:

So Romney's campaign started off by donating. If Obama did that, You'd be calling him a friggin' HERO.

Ultimately, the only thing you've done, is vilify Romney for giving $5000 worth of food to the relief effort.======
 
You kool-aid drinking moron.
Nov 1, 2012 2:25PM
avatar

EMPTY HEAD IS MAD BECAUSE HE DID NOT GET A JUICE BOX AND A COOKIE.
Nov 1, 2012 2:25PM
avatar
Gov Crispy Creme says he doesn't have time to play with Mitt now; he's busy with the President and recovery efforts. Good for him.

To those in NJ, NY, and everyone who suffered losses from hurricane Sandy, my thoughts are with you.

Nov 1, 2012 2:24PM
avatar
Team Romney Admits “Relief” Event Was Staged for Political Reasons

I also found this part of the story fascinating. The Romney campaign admits that the intent behind the rally was swing state election visibility, not hurricane relief:

But Boston wasn’t quite ready to lose a full day of swing state visibility with a week left in the race. So, after some deliberation, the campaign decided to use their existing venue in Ohio to stage a makeshift, and nonpartisan, humanitarian project. It would be a way for Romney to show leadership — and get on the local news — without looking craven or opportunistic.

They weren’t willing to lose a day’s visibility in a swing state, so they came up with the event and crafted it in a way that would still get them political benefit, but would camouflage the intent.  So, as I predicted, Team Romney saw Hurricane Sandy – saw the imminent peril of tens of millions of Americans – as a political "oppotunity" to exploit.

Nov 1, 2012 2:24PM
avatar
If a libtard said something flattering about Romney, Obama would appoint him to be the new Libyan ambassador.
Nov 1, 2012 2:23PM
avatar
I wish Uncle Charley would take control of this forum and keep it to the economic side instead of all these left wing bashers that seem to think the only way through this is to start a fight with words but not put good use to actions.
Nov 1, 2012 2:23PM
avatar

No relief for you!

We’ve all been through it before. Grandma’s getting old. Mom goes and buys grandma’s Christmas gifts, or maybe mom even gives you a 20 and tells you to buy yourself something from grandma, then wrap it up for Christmas eve – and make sure you look surprised when you unwrap your gift in front of grandma!

And that’s okay, cuz grandma’s 90 years old and has a hard time getting around.

What’s Mitt Romney’s excuse?

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