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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44 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
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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
ticknert2

The numbers would have been even better if not for the idiotic Tbaggie $26,000,000,000 Gov shutdown.

November 08 2013 at 10:33 PM Report abuse +5 rate up rate down Reply
1 reply to ticknert2's comment
willypfistergash

There was a shutdown?

November 09 2013 at 12:35 AM 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
1 reply to betty_brock's comment
ticknert2

Spin and a miss silly baggie!

November 08 2013 at 10:27 PM Report abuse +4 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
willypfistergash

932,000 people dropped out of the workforce in October...just gave up...lost hope. We can nist stick to the numbers that gibby likes though. When hugobama's economy adds 1.1 million jobs in one month like another non'democrat president's economy did in September, 1983...I'll be here with a hat tip.

November 08 2013 at 9:06 PM Report abuse -7 rate up rate down Reply
2 replies to willypfistergash's comment
chessgms2

One problem with that comparison is that the economy today has little in common with 1980s style recessions. Back in those days, when we had a downturn and some old geezer of a security guard padlocked the factories, even though times were going to be rough, we knew eventually he\'d be back to unchain the gates and life would go on largely as before. And, in 1983, things did.
But over the past two decades, we\'ve shipped our industrial base offshore. There\'s no gate and no plant left.
Frankly, what I see is a failure of our notions of Free Market Globalism more than anything either Bush......or Obama......have, or haven\'t done. Yes, wars and tax and fiscal policies have indeed played their part.
But you can\'t have a vibrant economy when something like 80% of all jobs created over the past two Presidential administrations are low wage service sector jobs. For awhile back in the early 2000s when a tax cutting Republican was at the helm, the fastest growing job occupation titles in America were Bartenders, Hospitality Workers, and healthcare......mostly on the menial end of the health industry too.
Old Ross Perot was crazy as a bedbug for the most part, but he was right back the in day. Our industrial base was sucked dry. The fashion in business and economic circles has been that industry is for emerging nations, and our future is in the Financial and technology sectors. But you cant totally run an economy on wealth creating wealth in a series of market bubbles and debt, and our technological innovations are quickly sent to Singapore and India. You cant thrive without still making SOMETHING which hurts when you drop it on your foot, but unlike Germany and Japan and others, that\'s what we\'ve had done to us by our business and political elites.
And no matter WHO is in the White House, those ideas simply havent worked out very well, and it\'s time to re-think our game plan.
And in any case, this isn\'t 1983 anymore, and can\'t be with the current economic philosophies en vogue with our Fearless Leaders.

November 09 2013 at 12:02 AM Report abuse +4 rate up rate down
willypfistergash

If the fastest growing job titles were bartender and hoslitality workers, wouldn't it stand to reason that people had a few extra bucks in their pocket to go out for a drink and travel now and then? Yes, the tax cutting Repub in the early 2000s (which by the way were across the board for all income levels) knew, just like the tax cutting Repub did back in the early 1980s that more money in the hands of the private sector is always stimulative. Their respective employment numbers and GDP proved them correct. And if cutting taxes was as you say be incentive for manufacturing to leave, I hope you can explain how raising taxes would be incentive for them to return. On another note, when the Repub took office in 1981we were looking at not only quickly rising unemployment, but double digit inflation and interest rates north of 20%.

We are going through the worst economic recovery since the great depression .

November 09 2013 at 11:22 AM Report abuse -7 rate up rate down
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