Jobs report pushes Dow above 14,000

The blue-chip index hits its highest level since October 2007. The S&P 500 also reaches a 5-year high. Employers add 157,000 jobs in January; November and December gains were better than thought. The unemployment rate ticks up to 7.9%.

By Charley Blaine Feb 1, 2013 12:46PM
Updated: 4:08 p.m. ET

Stocks took off on Friday, and the Dow Jones Industrial Average ($INDU) closed above 14,000 for the first time since October 2007 as investors cheered a decent jobs report and improvements in U.S. manufacturing and consumer confidence.

The blue chips topped 14,000 shortly after 10 a.m. The index fell back below 14,000 several times during the day. But late buying pushed the Dow to close at 14,010, a 148-point gain. The Standard & Poor's 500 Index ($INX) hit a five-year high of 1,513, up 15 points.

The Nasdaq Composite Index ($COMPX) had gained 37 points to 3,179, its highest level in 12 years.
The rally was the biggest for stocks since Jan. 2, when the Dow soared 308 points. The blue chips are about 150 points under their 2007 closing high of 14,165. The S&P 500 is 52 points below its 2007 closing high.

The market rally was set off by Friday's jobs report, which estimated that employers added 157,000 jobs in January, although the unemployment rate moved up slightly to 7.9% from 7.8% in December. Revisions showed that job gains in November and December were stronger than originally thought.

The market gains put the Dow up 6.9% for the year, with the S&P 500 up 6.1%. The Nasdaq is up 5.2%. The Dow finished January up 5.8%, its best January since 1994. The S&P 500's 5% gain was its best for a January since 1997. © Nicholas Monu/iStock Exclusive/Getty Images

Twenty-eight of the 30 Dow stocks were higher, led by Bank of America (BAC) and United Technologies (UTX). The laggards were Hewlett-Packard (HPQ) and pharmaceutical giant Merck (MRK).

Google (GOOG) hit a new high of $776.73 before closing at $775.60, a new closing high. Other stocks hitting all-time highs included 3M (MMM), Procter & Gamble (PG), J.M. Smucker (SJM) and Tupperware (TUP).

Apple (AAPL) shares did not participate in the rally, falling $1.76 to $453.73.

Crude oil climbed on news of a bombing outside the U.S. embassy in Ankara, Turkey, as well as an explosion at the headquarters of Pemex, the state-owned oil company, in Mexico City.  Crude oil in New York settled up 28 cents to $97.85 a barrel. Brent crude, the North Sea benchmark, was up $1.08 to $116.63.
 
A solid market rally became a big rally after when the Institute for Supply Management said its January index of manufacturing rose to 53.1 from 50.7 in December. Analysts had expected a reading of 50.7.

And the University of Michigan's second reading of consumer sentiment showed a rebound to 73.8 from 71.3. Economists had expected the index to reach only 71.5.

Auto sales for January were strong. Chrysler reported a 16% gain. Ford Motor (F) sales were up 22%, and General Motors (GM) sales added 22%. Toyota (TM) said its January sales jumped 26%.

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215Comments
Feb 1, 2013 2:52PM
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I wonder... if the Kool Aid addicts in power spent as much as they have faking this recovery and put it into legitimate recovery... how much farther ahead we would be now? We are going to crash soooooo badly. This is going to hurt.
Feb 1, 2013 2:51PM
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There are only 2 rules in this game:

Rule #1 - Don't fight the Fed.
Rule #2 - See Rule #1.

As a bear, there's still plenty of ways to make money without betting against Bernanke.  The Euro has been on a steady march in the last several weeks and it continues to climb - there's still oodles of cash to be made there.  There's also room for silver to make a sizable run up in a short period of time.  Note how gold and silver are both up today, along with stocks.  You can also make out pretty well playing the dividend game by buying between the announcement and the "date of record" and selling shortly after.

Feb 1, 2013 2:50PM
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The poor and middle class need decent jobs.  Where are we as a country on that front?  I don't beleive we have done anything to improve this.  The market will eventaully have to reflect reality instead of it's current level that is the result of Fed manipulation!
Feb 1, 2013 2:50PM
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There is something seriously wrong when we use the stock market to gauge our economy. The market only should have been used as a tool to get companies up and running not to bet on how good they are going to do.
Feb 1, 2013 2:49PM
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Go America ... about time we put the Bush years behind us.
Feb 1, 2013 2:47PM
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There isn't any real growth.  It's been artificailly created and it will not end well. At some point you have to make a profit.  and that profit has to be based on growth and not cutting jobs, maximizing efficiency and refinancing debt with cheap money!  You can't cut fovever to improve your bottom line!
Feb 1, 2013 2:43PM
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president obama has fixed the damage  president obama is the greatest president ever
Feb 1, 2013 2:32PM
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maybe its just me:

 

GDP shrinks

 

The unemployment rate ticks up to 7.9%.

 

it sounds like a KOOLADE rally to me....

 

Feb 1, 2013 2:06PM
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Hey I want to send Junior to a slightly better college...I was wondering iif anyone would give me the 'green light' to double down with his current fund to make that possiblitity...should I 'go for it'?
Feb 1, 2013 2:05PM
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I believe something is fishy with the numbers.....I wonder if can we trust the figures that are being feed to us anymore?   I know that this is good for my investments at this point but I am concerned about what may be ahead.

Feb 1, 2013 1:58PM
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This will be the first gain in the markets since 2007. All other gains were to recover lossess since then.
Feb 1, 2013 1:51PM
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Ahhh! The Sunshine Pump...What a wonderful tool to distract the sheep from reality.

Feb 1, 2013 1:51PM
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Labor Participation rates

‎2008 66.2 66.0 66.1 65.9 66.1 66.1 66.1 66.1 65.9 66.0 65.8 65.8
2009 65.7 65.8 65.6 65.6 65.7 65.7 65.5 65.4 65.1 65.0 65.0 64.6
2010 64.8 64.9 64.9 65.1 64.9 64.6 64.6 64.7 64.6 64.4 64.5 64.3
2011 64.2 64.2 64.2 64.2 64.2 64.1 64.0 64.1 64.1 64.1 64.0 64.0
2012 63.7 63.9 63.8 63.6 63.8 63.8 63.7 63.5 63.6 63.8 63.6 63.6

2013 63.6

Doesn't look like a job recovery to me. Looks like people are losing benefits. Must be Bush's fault!!!

Feb 1, 2013 1:51PM
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What a joke. As soon as the folks realize these numbers are twisted and false it'll be way to late. The truth of the matter is we're headed for a double dip recession. The  phony in the White House and his administration will soon have you believing he can change water into wine. The morons who I thought had the sense to realize after 2008 they made a terrible mistake elected the phony again. They deserve what they get. 
Feb 1, 2013 1:50PM
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This is such great news for all of the rich people, but what good is this news to the average working and poor person in this country. All they are doing is putting us deeper in the hole by making us pay more for things like gas and food. This will have a devastating effect on consumer spending if gas prices continue to rise and they will, because traders want them to and their Greed will not let them stop. Time to regulate excessive speculation in oil futures trading by requiring these traders to take full physical delivery of all futures bought ahead and currently they never see or have to deal with them. It is time to level the playing field.
Feb 1, 2013 1:27PM
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i have MY guns............when will the lies stop?
Feb 1, 2013 1:25PM
Feb 1, 2013 1:22PM
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Since 2007 the Intelligence Czar, via the President of the United States, has had the ability to allow publicly traded corporations to suspend standard accounting practices (in the name of national security).  As such, I'd recommend taking these numbers with a grain or two of salt.
Feb 1, 2013 1:18PM
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These numbers are so false, there's no way anything is improving or doing better if the unemployment number is ticking up, let's not forget about the small companies that don't even report layoffs or closing because they are so small and not even counted by the government or the people that have been kicked off of unemployment and still have not gotten a decent job and are working part-time, so all them false numbers they can keep!
Feb 1, 2013 1:17PM
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I don't understand why the market is up.  These numbers seem hollow.  With unemployment up one tick, and all of the people who've stopped looking for a job not being reported, this shows how we're still not making any headway.  I think I've seen this irrational exuberance a few times in the past twenty years.... 
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