April 25, 2024

Labor Data Fuels Market Rally

Shares on Wall Street traded higher on Friday, with the Standard Poor’s 500-stock index on track for a sixth-straight day of gains after a much-stronger-than-expected payrolls report.

In midday trading, the S.P. 500 rose 0.3 percent, while the Dow climbed 0.4 percent and the Nasdaq composite index added 0.2 percent.

Data showed hiring increased in February, with payrolls jumping by 236,000, easily beating expectations for a gain of 160,000 jobs. The unemployment rate fell to 7.7 percent, the lowest since December 2008.

“Great report — there just isn’t anything that I can pull out negative at all about this report,” said Darrell Cronk, regional chief investment officer for Wells Fargo Private Bank in New York. “It is taking a little bit of this argument off the table that the Fed is doing all the heavy lifting in the economy. There is a trend building in the economic data that, while not off-the-charts-great, is definitely moving in the right direction.”

The data helped add to earlier gains triggered by data from China. Exports in the world’s second-biggest economy soared 21.8 percent in February from a year ago, exceeding expectations and suggesting that global demand may also be on the mend. Imports fell 15.2 percent to 13-month lows.

The benchmark S.P. 500 has advanced 1.7 percent this week, its biggest weekly gain so far this year. The Dow Jones industrial average ended Thursday at a record high for a third-consecutive session.

But investors were mindful of the possibility of a pullback, as the last correction for the S.P. 500 was nearly a year ago — a 9.9 percent slide between April and the start of June.

McDonald’s gained 1.8 percent after the fast-food hamburger chain said that February sales at established restaurants fell just 1.5 percent, a little better than expected.

Pandora Media shares jumped 25.3 percent on stronger-than-expected quarterly results. The company also said in a surprise announcement that its chief executive, Joseph Kennedy, was stepping down.

SkullCandy shares tumbled 18.9 percent after the headphone maker reported higher-than-expected fourth-quarter revenue but said it expected to post a loss in the current quarter.

Article source: http://www.nytimes.com/2013/03/09/business/daily-stock-market-activity.html?partner=rss&emc=rss

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