U.S. Stocks Ended Firmly Higher

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U.S. stocks posted a firm gain on Friday. The Dow industrial closed above 11,000 for the first time in five months. The first close above 11,000 was on May 3. The Dow rose 0.5% on Friday trading and 1.6% this week.

 

The Nasdaq Composite advanced 0.8% to 2,401.91. The Standard & Poor’s 500 stock index rose 0.6% to 1,165.15. Both gained 1.3% and 1.7% this week.

 

Companies likely added a small number of jobs; however, the number is not nearly enough to reduce the nation’s unemployment rate. The private sector created 64,000 jobs. Thomson Reuters’s survey shows that the rate is expected to surge to 9.7 percent from 9.6 percent. It is projected to top 10 percent by next year.

 

It was reported that 95,000 workers lost their jobs in September, higher than the 8,000 workers expected by Wall Street economists. The labor market shed more jobs than expected. Average hourly earnings were flat $22.67.

 

Brian Gendreau, market strategist with Financial Network, said that the jobs report had not changed anyone’s thinking about where they were in that economic recovery. According to Doug Cliggott, managing director and U.S. equity strategist at Credit Suisse, there were hardly real silver bullets to accelerate the recovery.

 

Among stocks in focus, Aluminum producer Alcoa, Inc. (NYSE: AA) gained 5.7%, leading the blue-chip index. The company kicked off earnings season late Thursday and raised its projection for global aluminum demand in 2010.

 

Shares of Adobe Systems Inc. lost 5.9% while J.C. Penney shares advanced 2.7%. Strong same-store sales at J.C. Penny fueled the stock and its backers.

 

In term of Treasurys, the yield on the benchmark 10-year note sank to 2.39%. Gold surged to $1,345.30 an ounce while the dollar weakened against other major currencies. The U.S. Dollar Index dropped 0.2%.

 

In the European stock markets, stocks finished mostly lower after U.S. jobs report. The Europe Stoxx 600 index closed down 0.02% at 262.26.

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Tyson Manning has 382 articles online and 12 fans

Economics is the study of our lives,our jobs, our homes, our families and the little decisions we face every day. Thus, I am keen on reading and studying economic issues.

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U.S. Stocks Ended Firmly Higher

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This article was published on 2010/10/12