Job reports sends Wall Street higher
December 6, 2009
Wall Street closed higher Friday after the release of better than anticipated jobs data spurred a morning rally. Despite a sell-off the market managed to remain above the gain line.
In employment news, the Labor Department reported that a 23-month low 11,000 jobs were cut in November, well below the 125,000 forecast.
Meanwhile in a separate report, it was revealed the unemployment rate dropped from 10.2% the previous month to 10% in November. Forecasts were for the rate to remain steady.
The Dow Jones gained 22.75 points, or 0.22%, to 10,388.90, the S&P 500 added 6.06 points, or 0.55%, to 1,105.98 and the NASDAQ put on 21.21 points, or 0.98%, to 2,194.35.
Among the major banks, Bank of America rallied 3.3% as investors reacted positively to the $15 pricing of its new shares.
Wells Fargo and Goldman Sachs put on 1.8% each.
Solid gains within the tech sector sent the NASDAQ 1% into the black. Hewlett-Packard rose 1.7%, while Oracle and Yahoo! advanced 0.8% and 0.5%.
Apple lost 1.6%.
A stronger greenback placed pressure on commodity prices, resulting in a slide among related stocks. The dollar strengthend the most in a single session since June on the back of the positive jobs report.
Aluminium producer Alcoa lost 2.1%.
du Pont sank 7.2% after the chemical company said the release of several products in its seed business would be postponed.
Energy companies Exxon Mobil and ConocoPhillips shed 1% each as NYMEX light crude oil for January delivery fell US99c to settle at US$75.47 a barrel.
A slump in the price of the gold saw Barrick Gold and Newmont mining drop 8.9% and 4.5%.
COMEX gold for February delivery fell US$48.80 to settle at US$1,169.50 an ounce.
European Markets
European markets were buoyed by the US jobs report, sending stocksd higher. Banks and energy stocks gained ground, while miners dragged.
The UK benchmark FTSE 100 added 9.36 points, or 0.18% to 5,322.36. The French CAC40 gained 47.51 points, or 1.25% to 3,846.62, while the German DAX put on 47.30 points, or 0.82% to 5,871.65.
Financials were among the top gainers. Societe Generale and BNP Paribas rose 1.1% and 1%.
Deutsche Bank closed 1.4% higher.
UK banks were mixed. Lloyds and HSBC added 1% and 0.2%, while Standard Chartered and Royal Bank of Scotland fell 3.6% and 1.4%.
Energy majors Total and Royal Dutch Shell advanced 1.2% and 1%. BP added 0.4%, while BG Group lost 0.8%.
Xstrata led the miners lower with a 3.4% fall. All metals prices other than aluminium fell on the London Metals Exchange Friday.
Antofagasta and Anglo American shed 2.3% and 1.6%, while Aussie miners BHP Billiton and Rio Tinto lost 2.1% and 1.8%.
Pharmaceuticals made ground. AstraZeneca and GlaxoSmithKline added 2.6% and 2.2%.
Cadbury weakened 1.5% as the British business minister said Kraft’s takeover offer might face opposition from the British government.
Japanese Markets
Japan’s Nikkei closed above the 10,000 mark for the first time in five weeks on a mixed day. The market finished 10.4% higher for the week, the largest gain in 12 months.
The Nikkei 225 added 44.92, or 0.45% to 10,022.59.
Canon and Sony gained 2.8% and 1.4% as the yen weakened against the greenback. Industrial robots maker Fanuc put on 2%.
Automaker Honda advanced 1.5%, while rival Toyota slid 0.8%.
Takefuji Corp sank 9.4% on reports the lender is short of funds.
Inpex and Japan Petroleum Exploration Co. fell 2.1% and 1.7% due to a falling oil price.
Japan Tobacco climbed 2.7% following a broker upgrade.
Japan Airlines spiked 8.7% after an alliance said it was prepared to invest over US$1 billion in the company to prevent it defecting to Delta Air Lines and a rival group.
Hong Kong Markets
The Hang Seng dipped lower Friday after posting gains for the other four days of the week. The banks and consumer stocks lost ground on perceived weakness in the US service sector, while property stocks capped losses.
The Hang Seng dipped 55.72, or 0.25% to 22,498.15.
Bank of China lost 1.6%, while Bank of Communications was flat. HSBC lost 0.4%.
Clothing manufacturer for Wal-Mart, Li & Fung shed 3.8%.
China Overseas Land gained 2.4%, and R&F Properties rallied 2.8%. The property sector as a whole showed strength as many companies reached sales targets ahead of schedule.
Brilliance China Automotive slumped 7.4% as a key stakeholder sold a stake in the company, while rival BYD, backed by Warren Buffett, climbed 2.6% after receiving US$2.2 billion in credit from the Bank of China.
In employment news, the Labor Department reported that a 23-month low 11,000 jobs were cut in November, well below the 125,000 forecast.
Meanwhile in a separate report, it was revealed the unemployment rate dropped from 10.2% the previous month to 10% in November. Forecasts were for the rate to remain steady.
The Dow Jones gained 22.75 points, or 0.22%, to 10,388.90, the S&P 500 added 6.06 points, or 0.55%, to 1,105.98 and the NASDAQ put on 21.21 points, or 0.98%, to 2,194.35.
Among the major banks, Bank of America rallied 3.3% as investors reacted positively to the $15 pricing of its new shares.
Wells Fargo and Goldman Sachs put on 1.8% each.
Solid gains within the tech sector sent the NASDAQ 1% into the black. Hewlett-Packard rose 1.7%, while Oracle and Yahoo! advanced 0.8% and 0.5%.
Apple lost 1.6%.
A stronger greenback placed pressure on commodity prices, resulting in a slide among related stocks. The dollar strengthend the most in a single session since June on the back of the positive jobs report.
Aluminium producer Alcoa lost 2.1%.
du Pont sank 7.2% after the chemical company said the release of several products in its seed business would be postponed.
Energy companies Exxon Mobil and ConocoPhillips shed 1% each as NYMEX light crude oil for January delivery fell US99c to settle at US$75.47 a barrel.
A slump in the price of the gold saw Barrick Gold and Newmont mining drop 8.9% and 4.5%.
COMEX gold for February delivery fell US$48.80 to settle at US$1,169.50 an ounce.
European Markets
European markets were buoyed by the US jobs report, sending stocksd higher. Banks and energy stocks gained ground, while miners dragged.
The UK benchmark FTSE 100 added 9.36 points, or 0.18% to 5,322.36. The French CAC40 gained 47.51 points, or 1.25% to 3,846.62, while the German DAX put on 47.30 points, or 0.82% to 5,871.65.
Financials were among the top gainers. Societe Generale and BNP Paribas rose 1.1% and 1%.
Deutsche Bank closed 1.4% higher.
UK banks were mixed. Lloyds and HSBC added 1% and 0.2%, while Standard Chartered and Royal Bank of Scotland fell 3.6% and 1.4%.
Energy majors Total and Royal Dutch Shell advanced 1.2% and 1%. BP added 0.4%, while BG Group lost 0.8%.
Xstrata led the miners lower with a 3.4% fall. All metals prices other than aluminium fell on the London Metals Exchange Friday.
Antofagasta and Anglo American shed 2.3% and 1.6%, while Aussie miners BHP Billiton and Rio Tinto lost 2.1% and 1.8%.
Pharmaceuticals made ground. AstraZeneca and GlaxoSmithKline added 2.6% and 2.2%.
Cadbury weakened 1.5% as the British business minister said Kraft’s takeover offer might face opposition from the British government.
Japanese Markets
Japan’s Nikkei closed above the 10,000 mark for the first time in five weeks on a mixed day. The market finished 10.4% higher for the week, the largest gain in 12 months.
The Nikkei 225 added 44.92, or 0.45% to 10,022.59.
Canon and Sony gained 2.8% and 1.4% as the yen weakened against the greenback. Industrial robots maker Fanuc put on 2%.
Automaker Honda advanced 1.5%, while rival Toyota slid 0.8%.
Takefuji Corp sank 9.4% on reports the lender is short of funds.
Inpex and Japan Petroleum Exploration Co. fell 2.1% and 1.7% due to a falling oil price.
Japan Tobacco climbed 2.7% following a broker upgrade.
Japan Airlines spiked 8.7% after an alliance said it was prepared to invest over US$1 billion in the company to prevent it defecting to Delta Air Lines and a rival group.
Hong Kong Markets
The Hang Seng dipped lower Friday after posting gains for the other four days of the week. The banks and consumer stocks lost ground on perceived weakness in the US service sector, while property stocks capped losses.
The Hang Seng dipped 55.72, or 0.25% to 22,498.15.
Bank of China lost 1.6%, while Bank of Communications was flat. HSBC lost 0.4%.
Clothing manufacturer for Wal-Mart, Li & Fung shed 3.8%.
China Overseas Land gained 2.4%, and R&F Properties rallied 2.8%. The property sector as a whole showed strength as many companies reached sales targets ahead of schedule.
Brilliance China Automotive slumped 7.4% as a key stakeholder sold a stake in the company, while rival BYD, backed by Warren Buffett, climbed 2.6% after receiving US$2.2 billion in credit from the Bank of China.
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