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%.

More on moneyNOW  
215Comments
Feb 1, 2013 5:36PM
avatar
Who really gives a $hit, next week it will be under 10,000, what a farce.
Feb 1, 2013 5:34PM
avatar
It's called the Obama touch. It's been a terrible ride from the abyss created by the "MBA's" of the Bush Administration. Those clowns with their greed and naked political ambitions almost destroyed the world economy. Remain vigilant for they are relentless in their goal to regain power and finish the job W wasn't able to wrap up.
Feb 1, 2013 5:34PM
avatar
Market is sitting on quicksand...nothing substantial to hold it up. It would be a good time to start selling and take your profits.
Feb 1, 2013 5:33PM
avatar

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.

Feb 1, 2013 5:32PM
avatar
The last time the Dow hit 14000 it took that big nosedive down to 6000. I transfered my stocks to bonds and mutual funds online the sunday before it all started .It was the Monday after that it started. Best move i ever made!
Feb 1, 2013 5:31PM
avatar
Jubak, W/S functions on both the positive and the negative!  For the past 6 years it has always been on the negative.  Europe this and Europe that.  Iran this and Iran that.  All it's going to take is for some analyst to dig up some bad news and you will see the same old story again. The problem with W/S is that the investors lose and the brokers and traders make out like bandits!!!!!!!!!! It's easy to work and get a huge commission when the average investor loses and you make money whether things are good or bad!
avatar

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....

 

Paul 

Feb 1, 2013 5:29PM
avatar
There is simply too much money (a la FED) and no place for it to go but the stock market.  How you can have so many negative indicators and yet the market still skyrockets?  For a while the institutions would wait for good news days to dump money into the market.  Then it became Ok to pump it up on days where there was no bad news.  Today unemployment went up and they still call it a reason for celebration and buying.  I am beginning to wonder if it is even possible for the market to drop given the amount of money being printed?   
Feb 1, 2013 5:20PM
avatar

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%.

Feb 1, 2013 5:15PM
avatar
OK, so the Dow made 14K.  How long before there's going to be some doom and gloom news to bring it back down?  With W/S anything that goes up will come down!!!!!!!!!!!!
Feb 1, 2013 5:13PM
avatar
Ist gain in the markets since 2007. Since then all gain have been to recover losses since then!!
Feb 1, 2013 5:12PM
avatar
Only here could the liberal press spin an increase in the unemployment rate to 7.9% as great news!

Higher taxes, higher unemployment, massive inflation, $3.50 gasoline, and the press CREDITS Obama with all these good things...   

I want to throw up.  Obama is a Lazy, Arrogant CORRUPT Imbecile.   When Helicopter Ben stops printing money we are going into a decades long democrat depression.
Feb 1, 2013 4:59PM
avatar
Blaine you are a plain moron.  The jobs report stinks.  The certainty that employment will stagnate with pathetic Obama at the helm plus the Fed printing money moved the market today.  Hey Charley, with all the money floating around we will be millionaires soon. 
Feb 1, 2013 4:58PM
avatar

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!

Feb 1, 2013 4:55PM
avatar
This is all a fake. Wall street and the big bank are just playing with monopoly money. It is not reality. When reality hits and the Fed raises interest rates then the "happy days" will be over. Excuse me the Fed will not touch the interest rate while his majesty BHO is still in office. If by chance we finally get a Republican in the white house in '16 then watch the rates and every other number go through the roof so as the give the MSM fodder for the new administration.  
Feb 1, 2013 4:39PM
avatar
Also, the liberal press is doing everything it can to make people think the good times are rolling again. Except there is nothing behind the curtain. Very dangerous and irresponsible journalism. You would think that Obama is running for re-election again given all the media spin on the economic numbers.
Feb 1, 2013 4:39PM
avatar

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.

Feb 1, 2013 4:35PM
avatar
Take a look at any of the market indexes since the mid-1990s. A huge spike up, big fall down..another huge spike up and big fall down...this bubble is the third leg up and huge drop to come. (shoulder, head, and shoulder.. ready to go down again). Right now the dumb money is jumping in just as the party is about to end. You can thank the Fed for printing money for this one. Economic fundmentals are miserable by most historical standard and corporate profits are all about meeting very low expectations. Sound like a big self-induced bubble.
Feb 1, 2013 4:32PM
avatar

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.

Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

Trending NOW

What’s this?

MARKET UPDATE

[BRIEFING.COM] The stock market finished the Tuesday session on an upbeat note with small caps pacing the rally. The Russell 2000 advanced 0.8%, while the S&P 500 added 0.5% with eight sectors ending in the green.

Although geopolitical concerns factored into the modest retreat on Monday, the worries were cast aside today after separatist forces in eastern Ukraine handed over black boxes from MH17 to Malaysian authorities and Secretary of State John Kerry began working on brokering a ... More

MSN MONEY'S