Stocks ended higher Friday, with the Dow Jones industrial average closing over 14,000 points for the first time since 2007, propelled by a strong upward revision of job growth in the United States for the fourth quarter.
The Standard Poor’s 500-stock index added 1 percent by the end of trading, and the Nasdaq composite index was up 1.2 percent. The Dow, adding 149 points, or 1.1 percent, ended at 14,009.79.
Employment grew modestly in January, with 157,000 new jobs, slightly below expectations for 160,000. Still, the December report was revised upward to 196,000 from 155,000, supporting views that the American economic recovery remained on track despite a surprise contraction in fourth-quarter gross domestic product.
“Nice revision upward, and this month came in right at the sweet spot where job growth is picking up,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.
“The market may be at something of a top here, but we are rising on improved economic fundamentals so the rally has been rational,” said Mr. Luschini, who helps oversee $55 billion in assets.
Corporate earnings were also a focus for investors, with some Dow components reporting profits that beat expectations.
Exxon Mobil was flat after its results, and the drug maker Merck fell 3.1 percent. While Merck’s profit was ahead of forecasts, it gave a cautious outlook on 2013.
The S.P. 500 advanced 5.1 percent in January, with gains driven by a sturdy start to the earnings season and a compromise in Washington that postponed the impact of automatic spending cuts and tax increases that were due to take effect early this year.
Wall Street stocks closed lower on Thursday amid investor caution ahead of the payroll report.
Article source: http://www.nytimes.com/2013/02/02/business/daily-stock-market-activity.html?partner=rss&emc=rss
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