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 1:16PM
avatar
It's called holiday seasonal help. The company I work for alone hired 175 seasonal employees for the holidays. When the holidays are over so is their employment. 
Nov 1, 2012 1:29PM
avatar
Max said;
"The last month we had a Republican in the White House we lost 800 thousand jobs, under Obama we've had 36 straight months of job growth and added 158,000 last month."

Who's giving you your facts, the blow up doll in your avi?

36 straight months of Lower percentages of the Population in the Work Force
RECORD numbers on WELFARE. ( Likely including you )
RECORD numbers UNDEREMPLOYED
RECORD numbers who's benefits have expired, and aren't counted toward Unemployment.
RECORD foreclosures
RECORD Debt
We're going BACKWARDS................

avatar
 
The Queen's Riddle

Barack Obama met with the Queen of England.

He asked her, "Your Majesty, how do you run such an efficient government? Are there any tips you can give me?"

"Well," said the Queen, "the most important thing is to surround yourself with intelligent people."

Obama frowned, and then asked, "But how do I know the people around are really intelligent?"

The Queen took a sip of tea. "Oh, that's easy; you just ask them to answer an intelligent riddle."

The Queen pushed a button on her intercom. "Please send Tony Blair in here, would you?"

Tony Blair walked into the room and said, "Yes, Your Majesty?"

The Queen smiled and said, "Answer me this, please, Tony. Your mother and father have a child. It's not your brother and it's not your sister.

Who is it?"

Without pausing for a moment, Tony Blair answered, "That would be me."

"Yes! Very good," said the Queen.

Obama went back home to ask Joe Biden the same question. "Joe, answer this for me. Your mother and your father have a child. It's not your brother and it's not your sister. Who is it?"

"I'm not sure," said Biden. "Let me get back to you on that one." He went to his advisers and asked everyone, but none could give him an answer.

Finally, Biden ran in to Sarah Palin out eating one night. Biden asked, "Sarah, can you answer this for me? Your mother and father have a child and it's not your brother or your sister. Who is it?"

Sarah Palin answered right back, "That's easy; it's me!"

Biden smiled, and said, "Thanks!" Then, he went back to speak with Obama. "Say, I did some research and I have the answer to that riddle. It's Sarah Palin!"

Obama got up, stomped over to Biden and angrily yelled into his face, "No! You idiot! It's Tony Blair!"
 
AND THAT IS PRECISELY WHAT'S GOING ON AT THE WHITE HOUSE!!!
Nov 1, 2012 1:06PM
avatar
Such media manipulated garbage! Well why are we laid off at my job?!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!  MSNBC GAG ME!
Nov 1, 2012 1:13PM
avatar
Stocks are up only so that fools will spend on black friday,making people believe that the economy is inproving!  Well it's NOT at all!!
Nov 1, 2012 1:37PM
avatar

hehe heard this very same thing last year, same time too, hello out there!!!! anybody left out there with a tenth of a brain cell functioning???

 

HOlidays coming up, temp jobs are NOT private sector job improvements, PERMANENT solid high paying jobs would be!!!!!

Nov 1, 2012 1:20PM
avatar
     This is what the kids of today are going to find out the hard way. That getting a good education and hard work wont pay off if youhave to give your blood sweat and tears to someone else.
Nov 1, 2012 1:27PM
avatar
Interesting, no mention that the ADP numbers for adding new jobs was done on a new method of calculation.  And, no mention of seasonal part-time help.  Hmmmmm, and right before the election too.  I wonder why?  And the market moves up on hope?  Again, at 13,000, the market is overvalued on a pure value basis.  This is really a 9,000 -10,000 market.  Sooner or later it will get there.  Gee, I hope that doesn't happen right after the election.  That would show what really has happened over the past 4 years.
Nov 1, 2012 1:36PM
avatar

Today is just pent up tension from the market being closed for a couple of days.  Jobs report means nothing.  They haven't been close for years.

 

It will give it back tomorrow.

Nov 1, 2012 2:07PM
avatar
363,000 initial jobless claims

158,000 NEW SEASONAL / PART TIME / MINIMUM WAGE JOBS which will likely be revised DOWN in a week or so.


PARTY ON DUDE!

Nov 1, 2012 1:56PM
avatar

"The historical data for the ADP National Employment Report was revised as part of the new methodology, which was used for the first time in the October report. September's increase has halved to 88,200 new jobs from an initially reported 162,000."

 

Sept was 162,000 now adjusted down to 88,000

 

Oct est. 158,000

 

Should we divide Oct by half to 79,000

 

Looks like we're trending down. 

 

I think I'm am economist.

 

Nov 1, 2012 1:55PM
avatar
Obama's plan for moving Forward;

Barry, we've got it!      Everyone works Part Time!        Unemployment near ZERO!!!!!!!

Nevermind that Underemployment, Welfare, and Food Stamps will be near 100%. That doesn't count towards Unemployment numbers!!!!!!!!!!!!!!!!!

Obama;  "Look............................................. Make it happen........................"


Nov 1, 2012 2:29PM
avatar
Poverty level jobs abound. We're saved!!!!
Nov 1, 2012 2:19PM
avatar
ADP changes how they calculate job numbers and everyone cheers. We need 400,000 jobs to grow out of this slump.
Nov 1, 2012 1:27PM
avatar
  Its funny how they keep removing my post i thought we lived in the united states where we have free speach.  HMMMM
Nov 1, 2012 2:09PM
avatar
The historical data for the ADP National Employment Report was revised as part of the new methodology, which was used for the first time 


LOL, what a bunch of manipulating scum bags.
avatar

 You never know.
 
 Her 4th marriage
 
 A woman who had been married three times walked into a bridal shop one
 day and told the sales clerk that she was looking for a wedding gown
 for her fourth wedding.
 
 "Of course, madam," replied the sales clerk, "exactly what type and
 color dress are you looking for?"
 
 The bride to be said, "A long frilly white dress with a veil."
 
 The sales clerk hesitated a bit, then said, "Please don't take this the
 wrong way, but gowns of that nature are considered more appropriate for
 brides who are being married the first time - for those who are a bit
 more innocent, if you know what I mean? Perhaps ivory or sky blue would
 be nice?"
 
 "Well," replied the customer, a little peeved at the clerk's
 directness, "I can assure you that a white gown would be quite
 appropriate. Believe it or not, despite all my marriages, I remain as
 innocent as a first-time bride. You see, my first husband was so
 excited about our wedding; he died as we were checking into our honey
 moon hotel. My second husband and I got into such a terrible fight in
 the limo on our way to our honeymoon hotel that we had that wedding
 annulled immediately and never spoke to each other again."
 "What about your third husband?" asked the sales clerk?
 
 "That one was a Democrat," said the woman, "and every night for four
 years, he just sat on the edge of the bed and told me how good it was
 going to be, but nothing ever happened."

Nov 1, 2012 2:21PM
avatar
Commie Obamie has been holding a fake Presidency for the last 3+ years.
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