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 1:04PM
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That's great, but it's all artificially induced by the Fed asset purchase program and QE's. Not real growth, no means production, stale corporate balance sheets, trade defecit and debt-to-GDP ratio is increasing. Total disingenuous, shallow and hollow numeration. If you're buying into this false sense of security you're in for another bruising worse than the 2007-2008 crash and recession.
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.... 
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 1:25PM
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 2:54PM
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I predict the stock market will go down again, and then back up, then back down and back up once more.  Then the world will end.  
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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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 1:18PM
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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 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 3:01PM
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"Jobs report pushes Dow above 14,000....The unemployment rate ticks up to 7.9%."

 

Wait a minute - that makes absolutely NO sense. If this doesn't show market manipulation, then I don't know what will.

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 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 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 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 3:10PM
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This is all smoke and mirrors created by the Fed buying binge, which has devalued the dollar, caused unemployment to go up, made our food cost more and made our gasoline cost more.  The Fed can't keep this up forever and the piper will have to be paid.  Too bad it will be us paying the piper and not the Fed.
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 2:52PM
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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 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 3:24PM
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" Dow crosses 14,000 on jobs rally"

This is so misleading, Jobs rally?  154,000 jobs were created, but 170,000 people LOST their jobs- a net loss which is why the unemloyment rate went UP! We're losing jobs, unemployment is stuck at 8% and MSN tries to portray this as a jobs rally? No surprise, they have a narrative and that's what they're pushing.

 

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