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%.
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.
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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The only reason the Market is up is because the FED is pumping it full of the $80 billion of worthless money they are printing each month. Add that on top of the trillions in worthless stimulus money they printed since Obama took office and you have a dollar so devalued that the 14000 points is really only worth about 9000 in real money.
No, flooding the market with money has cheapened the value of our currency. In purchasing power, the equivalent DOW would be below 6000.
Its about money supply folks! Lets all play pretend so we can prop up the crap money policies of this president!
No? Don't agree? Look at your investments and your unemployed neighbors, or in your mirror. Are you REALLY better off than say five years ago?
Keep on tapping your retirement savings to pay for food. Maybe it will last til you pass on to whatever waits for you....
Someone - how can you possibly be so negative? After all, 157,000 jobs is only 100,000 shy of what we need just to tread water in the unemployment number.
Apparently, enough people continued to give up trying to find a job that the unemployment rate only went up 0.1%.
When I want to gamble with my money, I"ll go to Vegas!
Plus, I can get a little side action, if you catch my drift!
Pete to say the market is up without any Fed money seems to ignore the $600 billion QE 1, 400 billion QE 2 and the ongoing QE 3 and 4's. Whether the money was put in last month this month is irrelevant so long as the money is in the market. If the Fed sold it's positions how do you think the market would react?
I have been invested and made decent money since the 2009 crash but I think some profit taking over the next week or so is in order then assess the situation. I'm not saying were doomed or anything this has been a good run, but they do end.
Gee, I guess Mr. Romney was right when he said that if President Obama got re-elected, America's economy would crumble? Yep! Sure seems he was right, all the key economic indicators are pointing toward collapse! LMFAO!!!
Thank God that moron didn't win. Imagine how well our economy would be doing if those republican a$$holes in congress actually worked with President Obama and the democrats.
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[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 added just over a point, holding its weekly gain at 1.0% while the Nasdaq lost 0.4%.
The major averages began the day on an upbeat note, but relinquished their opening gains during the first 90 minutes of action. The early sentiment was boosted by a better-than-expected nonfarm payrolls report for February (175K versus Briefing.com consensus 163K), but a closer look into the report suggested that ... More
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The solid report comes a month after the retailer closed all of its Canadian operations.
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