After Market: Surprisingly Strong Jobs Numbers Spark Stock Rally

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Stocks bounced back Friday on a second straight day of surprisingly good economic news. The Dow Industrials (^DJI) gained 167 points, ending the week at another record high of 15,762. The S&P 500 (^GPSC) rose 23 to 1,771, and the Nasdaq (^IXIC) rallied 62 points to 3,919. And after some big swings, the major averages were mostly higher for the full week.

The Labor Department reported the economy added 204,000 jobs last month, despite the 16-day government shutdown in October. That was nearly double the consensus expectation. The market of late hasn't always cheered strong economic numbers because of fears that an improving climate could prompt the Federal Reserve to finally begin to taper its massive economic stimulus program. But in this case, good news was indeed good news.
Portrait of black business woman shaking hands
Alamy


Still, bond prices tumbled on signs the economy is gaining strength. That sent the yield on the 10-year Treasury soaring to 2.76 percent.

Among the best performing blue chips: JPMorgan Chase (JPM), up 4 percent; Merck (MRK) up 2 percent; and Walt Disney (DIS), up 2 percent. Disney posted solid earnings and agreed to produce several series of live-action TV shows based on Marvel superheroes, exclusively for Netflix (NFLX).

Airline stocks found plenty of blue sky. United Continental (UAL) rose 4 percent. The airlines are getting help from a stronger economy and declining oil prices.

Other Big Movers on Friday:
  • Priceline (PCLN) rose 5 percent (that's 50 dollars a share) and Groupon jumped 6 percent –- both on continued earnings growth.
  • Gap (GPS) rallied more than 9 percent on much better than expected sales in October.
  • And Santarus (SNTS) soared 37 percent after agreeing to be acquired by Salix Pharmaceuticals for $2.6 billion.
  • On the downside, Twitter (TWTR) ran out of momentum after all of the excitement over its IPO on Thursday. The stock fell nearly 9 percent.
  • And homebuilders got hammered. Pulte (PHA), Lennar (LEN) and Ryland (RYL) all lost about 4 percent, hurt by the steep rise in interest rates. Higher mortgage rates make new homes less affordable, especially for first -time buyers.
  • And NetSol Technologies (NTWK), an IT applications firm, tumbled 30 percent after posting a big drop in earnings.

What to Watch Monday:
  • The bond market is closed for Veterans Day, but U.S. stock markets are open.
  • New Corp. (NWS) and Sotheby's (BID) report quarterly results after the market closes.

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38 Comments

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jdykbpl45

You can keep your health care plan, if you want it.

Barrak H. Obama, Liar in chief!

November 09 2013 at 5:45 PM Report abuse -3 rate up rate down Reply
toosmart4u

Way to go President Obama, rough job cleaning up the mess from the previous republican administration of bush jr.

November 09 2013 at 3:42 AM Report abuse +2 rate up rate down Reply
1 reply to toosmart4u's comment
willypfistergash

Good job lying to the people obama. Rough job trying to take control of their health without doing so.

November 09 2013 at 11:00 AM Report abuse -7 rate up rate down Reply
Isabel Madsara

forex spread beting
http://2014download.com/forex-spread-betting/

November 09 2013 at 2:16 AM Report abuse +1 rate up rate down Reply
willypfistergash

LMAO...tickdirt, spongebob and the other left wing mental patients still trying to milk the obama/reid shutdown. It isn't surprising considering hugobama's big obamacare lie.

November 09 2013 at 12:45 AM Report abuse -5 rate up rate down Reply
YourFtr

Libeals believe the \"Trickle-Down\" Theory works in the Stock Market.....!??

November 08 2013 at 10:59 PM Report abuse -7 rate up rate down Reply
betty_brock

Liberals love the spin even though it makes them dizzy.

November 08 2013 at 8:31 PM Report abuse -8 rate up rate down Reply
gibby1208

I love watching republitards writhing and squirming, when positive report after positive report proves that they were wrong, and are wrong. They dodge, evade and pull figures from the air, but America knows that we are far better off under a democratic president, than under a republican regime.
Thanks, President Obama!

November 08 2013 at 7:55 PM Report abuse +4 rate up rate down Reply
2 replies to gibby1208's comment
betty_brock

If you had any sense, you'd be squirming. You must be dizzy from the spin.

November 08 2013 at 8:30 PM Report abuse -8 rate up rate down Reply
betty_brock

If you had any sense, you'd be squirming. You must be dizzy from the spin.

November 08 2013 at 8:30 PM Report abuse -8 rate up rate down Reply
willypfistergash

I wonder when obama's economy will be able to put on it's big boy pants and stand on it's own without the help from the federal reserve?

November 08 2013 at 7:42 PM Report abuse -4 rate up rate down Reply
2 replies to willypfistergash's comment
gibby1208

Poor republitards. You just can't stand to see President Obama succeed. Stew in your own juices, my wooly friends, no one cares what you think.

November 08 2013 at 7:47 PM Report abuse +3 rate up rate down Reply
1 reply to gibby1208's comment
betty_brock

I for one would LOVE to see him succeed. He hasn't yet.

November 08 2013 at 8:31 PM Report abuse -8 rate up rate down
jrb359

That can't be true! Obama said that the government shutdown hurt job growth. Maybe they could shut it down more often and get rid of the 800,000 non-essential government employees!

November 08 2013 at 7:17 PM Report abuse -5 rate up rate down Reply
2 replies to jrb359's comment
gibby1208

It did, for October. Fortunately, President Obama's wise leadership overcame that temporary setback. much to republican chagrin.

November 08 2013 at 7:48 PM Report abuse +3 rate up rate down Reply
1 reply to gibby1208's comment
willypfistergash

What do you mean gibster? The fed still bought $85 billion in bonds and we kept printing.

November 08 2013 at 8:50 PM Report abuse -5 rate up rate down
ak841

Dont EVER forget when bush took office we where 200 billion in the Black, when he left office we where 8 trillion in the red or hole.

November 08 2013 at 10:42 PM Report abuse +3 rate up rate down Reply
1 reply to ak841's comment
willypfistergash

Sigh...there was over $5 trillion in national.debt when bush took office.
So you like the balanced budgets that newt put on bj clinton's.desk? Too bad nancy never put any of those on Ws desk.

November 09 2013 at 12:40 AM Report abuse -7 rate up rate down
Iselin007

I'm still waiting for the report for NJ from September they had plenty of time to (Lie)!

November 08 2013 at 7:08 PM Report abuse rate up rate down Reply