After Market: Employment Optimism Lifts Stocks to a Positive Week

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Stocks rallied for a second straight day on Friday, despite a disappointing report on job growth. The closely watched January jobs report was tepid at best, but many analysts attribute that to the horrible weather last month, and not fundamental weakness in the economy.

The Dow Jones industrial average (^DJI) rallied 165 points, the Standard & Poor's 500 index (^GPSC) rose 23 and the Nasdaq composite (^IXIC) jumped 68 points. The two days of gains were enough to offset previous loses, allowing markets to close in positive territory for the week.

A lot of the day's action was in big-name Nasdaq stocks. Apple (AAPL) gained 1.5 percent. CEO Tim Cook said the company has repurchased $14 billion worth of stock since share prices fell in the wake of the disappointing earnings report it issued two weeks ago. Google (GOOG) gained 1.5 percent on news that it bought a 6 percent stake in the fast-growing Chinese tech-giant Lenovo. Twitter (TWTR) rose 8.5 percent, bouncing back from a big sell-off on Thursday that followed its disappointing earnings report.

Netflix (NFLX) rose 5 percent, Facebook (FB) gained 3.5 percent and Tesla (TSLA) rose 4.5 percent. Expedia (EXPE) rose 14 percent after reporting strong revenue growth. Rival TripAdvisor (TRIP) rose 9 percent and Priceline (PCLN) gained 5 percent.

Green Mountain Coffee Roasters (GMCR) stayed hot, gaining another 5 percent. Investors love its deal with Coke (KO) to make and distribute single-serving pods to brew in-home cold drinks. The stock is has risen by 132 percent in the past year.

Activision Blizzard (ATVI) jumped 14 percent. It now has nearly 8 million users for its "World of Warcraft" video game. Outerwall (OUTR), which operates Redbox kiosks and Coinstar machines, rose 12 percent. It posted strong earnings and named a new top executive at Redbox. Athenahealth (ATHN) jumped 25 percent on better than expected earnings.

Bucking the upward trend, LinkedIn (LNKD) slid 6.5 percent as the professional social network issued a disappointing earnings outlook.

On the New York Stock Exchanges, defense stocks posted strong gains. Boeing (BA) and General Dyanmics (GD) both jumped 3 percent, while Lockheed Martin (LMT) gained 2 percent.

But insurance giant Cigna (CI) fell 9 percent after an earnings miss and a weak forecast.

What to Watch Monday:

These major companies are scheduled to release quarterly financial statements:
  • Hasbro (HAS)
  • Loews (L)
  • Masco (MAS)
  • Wausau Paper (WPP)
-Produced by Drew Trachtenberg.


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15 Comments

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alfrankenfool

The only optimistic thing is Obama will be gone in 3 years.

February 09 2014 at 2:46 PM Report abuse -2 rate up rate down Reply
david36rush

Record number of people in poverty, thanks to Bush
Record number of people on food stamps, thanks to Bush
Record number of people depending on disability, thanks to a record number of people uninsured under Bush
Record lenght of time on unemployment, thanks to Bush's worst economic crisis since the Great Depression
Record lenght of time from losing your job, to finding another, thanks to Bush who outsourced over 3 million jobs
Record deficits, and debt, thanks to Bush's wars and tax cuts
Record loss of purchasing power, thanks to Bush's tax cuts the 1% has all of the purchasing power while the middle class has none.
Record number of people working part time, thanks to corporate greed
Record increase in income gap between rich and poor, thanks to Bush's tax cuts which mostly benefit the 1%
TPGOP is blocking hope and change................................

February 09 2014 at 10:02 AM Report abuse +3 rate up rate down Reply
1 reply to david36rush's comment
progressivehoax

It's obvious that you are a complete phool.

February 09 2014 at 11:21 AM Report abuse -3 rate up rate down Reply
2 replies to progressivehoax's comment
progressivehoax

Evan, are you sitting comfortably in front of the heat register blow hot air compliments of your Fuel Assistance.

February 09 2014 at 12:25 PM Report abuse -1 rate up rate down
redstateredneck.hillbilly

We folks here in the south have a really hard time making ends meet. I work 40 hours and I'm still able to collect food stamps. I have worked for this company now for two years and haven't seen a raise in my wage. My co-worker has worked for this company for 5 years now and he to hasn't seen a raise in his wage.

February 09 2014 at 12:44 PM Report abuse +1 rate up rate down
drbuckles

even after a couple of days of Bull Sh!t Mountain media of Obama care killing jobs.....

February 08 2014 at 12:11 AM Report abuse +4 rate up rate down Reply
Iselin007

Stocks rallied for a second straight day on Friday, despite a disappointing report on job growth:

Since the statistics can be misleading only those hurting know the true misery. Just because someone is looking for a job it does not mean you will be counted!

The push for productivy has turned the average place into a sweatshop. People are getting older but the expectations for output are getting greater. The stress and the abuse will eventually cost the taxpayers because the businesses will just pass off the costs of underpaying or abuse off on somebody else.

February 07 2014 at 9:04 PM Report abuse +1 rate up rate down Reply
Sped Man

Unemployment will drop to 6% by June. Every month over a hundred thousand will fall off of regular unemployment benefits to no benefits. They didn't find a job they simply aren't receiving any benefits any more. Translation millions will be applying for SNAP (food stamps) in the coming months. Watch Congress pass legislation to make it harder to apply. Our paid off elected officials will be praising each other for a job well done due to low unemployment. When in reality unemployment is over 25%.

February 07 2014 at 8:50 PM Report abuse +2 rate up rate down Reply
SPQR

They took their profits and that worked great! Hmmm but where to but those millions and billions...hmmmm I guess back into the market and let's see if we can do it again ! YAY

February 07 2014 at 8:45 PM Report abuse +3 rate up rate down Reply
Iselin007

From experience I can say many employers can keep their hiring so private an applicant would be discouraged from going to a business.

You ask for an application they may say they aren\'t hiring, they don\'t have any applications, or they hire through an agency ect.

February 07 2014 at 7:24 PM Report abuse -1 rate up rate down Reply
Iselin007

By keeping the numbers faceless all employed or unemployed percentages could be worse for real persons per job opening, per gender, per race or other statistic.

The lower the skill level or common job type which more people could be capable of doing may mean the majority of unemployed in your area might apply for a job in a casino ect.

When they say there are 3 people for 1 job opening might escalate to 1,000 or more depending on the job!

February 07 2014 at 6:44 PM Report abuse +1 rate up rate down Reply
carl357

Is the hot air comfortable on your buns? Truth is the employment picture is so bleak the smart money is betting the clueless fed is going to speed up the printing presses which only feeds the stock market, not creates new jobs. This is the greatest foolishness of my life time and I'm 76 years old.

February 07 2014 at 6:44 PM Report abuse +5 rate up rate down Reply
1 reply to carl357's comment
carl357

This foolishness will come back on our children with a $10 loaf of bread and a DOW at 5000 (whatever the inflated currency may be). Our children will enjoy the legacy of fools.

February 07 2014 at 10:57 PM Report abuse +1 rate up rate down Reply
Richard

And rightfully so because more and more people are now employed, wearing those funny hats and saying....."would you like fies with this..."

February 07 2014 at 6:41 PM Report abuse +2 rate up rate down Reply