Thread: Stocks higher after strong jobs report

Stocks higher after strong jobs report

Kim Hjelmgaard, USA TODAY12:36 p.m. EST November 8, 2013


(Photo: Bebeto Matthews, AP)

STORY HIGHLIGHTS
Economy added 204,000 jobs in October

• S&P cuts France credit rating
• Twitter shares in focus

Stocks rose Friday after the release of a surprisingly strong monthly jobs report.

The U.S. economy added a better-than-expected 204,000 jobs in October despite a federal government shutdown that was expected to limit payroll growth. Despite the gains, the unemployment rate edged up to 7.3% from 7.2%.

At midday, the Dow Jones industrial average was up 0.6% to 15,687 and the Standard & Poor's 500 index gained 0.9% to 1,763. The Nasdaq composite index surged 1.4% to 3,910.

In the prior session, the Dow fell 0.1% to 15,727 while the broader S&P 500 shed 0.4% to 1,764. The Nasdaq composite plummeted 1.9% to 3,857.33.

Twitter started out its second day of trading a little volatile jumping about 3% at the open before quickly retreating and falling almost 4% to $43.23. On Thursday, Twitter shares (TWTR) debuted and ended the day 73% above the offering price at $44.90.

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Investors are still cautious because Friday's jobs numbers and Thursday's surprisingly strong report on U.S. economic growth could be the evidence the Federal Reserve needs to start pulling back on its economic stimulus.

The Fed has been buying $85 billion worth of bonds each month since December in an effort to keep interest rates low and boost the economy. Due to the design of the program, the Fed's actions have had a secondary effect of driving up stock prices by making bonds look expensive by comparison.

Some investors believe that the Fed now has enough evidence that the U.S. economy is going better to start pulling back its stimulus program as early as its December meeting.

"It's a close call, but these numbers point to the Fed (pulling back) in December or in January," said David Kelly, chief global strategist at JPMorgan Funds, which oversees about $400 billion in assets.

Asian stocks on Friday followed Wall Street's Thursday drop after the release of quarterly U.S. economic data showed the economy grew 2.8% in the third quarter, nearly a percentage point faster than economists had predicted.

Investors in Asia were also hanging back on Friday ahead of a weekend meeting in Beijing where China's communist leaders are expected to lay out their long-term plan for the world's No. 2 economy. A report that showed strong growth in Chinese exports last month was not enough to counter investor caution.

Japan's Nikkei 225 index closed down 1% at 14,086.80. The Shanghai composite index fell 1.1% to 2,106.13.

European shares were digesting a cut to France's credit rating by the Standard & Poor's ratings firm by one notch to AA. In a statement Friday, the rating agency said it feared the French government will struggle to reduce its deficit and debt and make the necessary reforms to make its economy more competitive. France's CAC 40 index fell 0.5% to 4,260.44.

Britain's FTSE 100 index rose 0.2% to 6,708.42 and Germany's DAX index fell 0.03% to 9,078.28.e.

http://www.usatoday.com/story/money/markets/2013/11/08/stocks-friday-payrolls-jobs-report/3473223/

U.S. stocks soar after a strong jobs report. Dow adds 167 points.