Stocks Rally; Dow Tops 14000

NEW YORK - Fresh off a blowout January, stocks started February with a bang.

The Dow industrials topped 14000 for the first time since 2007, capping their fifth-straight weekly gain, following encouraging data on US jobs and manufacturing.

The Dow Jones Industrial Average advanced 149.21 points, or 1.1%, to 14009.79 Friday, climbing above 14000 for the first time since Oct. 12, 2007.

The Standard & Poor's 500-stock index rose 15.06 points, or 1%, to 1513.17, a day after capping a 5% monthly gain, the biggest since October 2011. Telecommunications shares in the S&P 500 led gains across all 10 of the index's sectors. The Nasdaq Composite Index climbed 36.97 points, or 1.2%, to 3179.10.

US employers added 157,000 jobs in January, the Labor Department reported, falling short of the 166,000 new payrolls predicted by economists in a Dow Jones Newswires poll. But the department said the economy added an average of 181,000 jobs a month last year, better than the 153,000 pace originally reported, as it revised initial readings for November and December higher.

Last month's unemployment rate, obtained in a separate survey of US households, edged up to 7.9% from 7.8% in December. Economists had predicted it would remain unchanged. Average hourly earnings rose 0.2%, in line with economists' views.

Elsewhere on the economic front, the Institute for Supply Management's January manufacturing purchasing managers' index, a measure of factory activity, rose more than economists had expected. A preliminary reading of the Thomson-Reuters and University of Michigan consumer-sentiment index for January also rose more than expected. Construction spending for December increased.

European markets were mostly higher, with the Stoxx Europe 600 up 0.3%, after Markit's euro-zone purchasing managers' index contracted at the slowest rate in 11 months. Spanish stocks bucked the trend by selling off after a ban on short selling, or betting against shares, was lifted. The IBEX 35 index dropped 1.6%.

FOREX:

The euro hit a 14-month high against the dollar Friday after US jobs data suggested there was no near-term end in sight for the Federal Reserve's easy credit policies.

Data from the Labor Department showed nonfarm payrolls rose 157,000 in January, below the expected 166,000 rise, while the unemployment rate rose to 7.9% from 7.8% the previous month. It also revised initial readings for November and December non-farm payrolls sharply higher.

Overall, the numbers showed an economy that was expanding, but not at a rate fast enough to threaten a rollback of the Fed's quantitative easing policies, which have weakened the dollar while driving so-called ''riskier'' currencies. The common currency rallied to as high as $1.3711, its highest level against the dollar since November 2011, while trading higher against most other currencies as well.

Euro bulls were also encouraged by a report earlier in the day showing that a long-running decline in the region's manufacturing activity eased to its healthiest level in almost a year in January while unemployment and inflation stabilized, signs that the worst of the region's crisis may have passed.

Some market watchers, however, warned the euro's 8% move rise against the dollar since November may soon be due for a reversal as traders look to lock in their gains.

The dollar, meanwhile, continued to march higher against the yen, hitting its highest levels against the currency since May 2010 as traders bet that newly minted Prime Minister Shinzo Abe will be successful in implementing aggressive monetary easing in a bid to stimulate Japan's economy.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Senators fail to grill DND, AFP officials on chopper deal officials on
    Senators fail to grill DND, AFP officials on chopper deal officials on

    Senators yesterday failed to grill defense and military officials over the P1.21-billion deal for the purchase of 21 Huey helicopters for the Armed Forces of the Philippines with the joint venture of Rice Aircraft Service Inc. and Eagle Copters Ltd. Francis Escudero and Joseph Victor Ejercito were interested to know why the defense department entered into a deal to buy secondhand helicopters when it is supposed to be modernizing the Armed Forces. “I am looking at the Armed Forces of the …

  • Revilla wants to undergo therapy for aching heels
    Revilla wants to undergo therapy for aching heels

    Detained Sen. Ramon Revilla Jr. has asked the Sandiganbayan to allow him to undergo therapy sessions for two weeks to treat his aching heels and back pains. In a motion filed before the anti-graft court’s First Division on Monday, Revilla’s lawyers said the senator should undergo further medical examination and treatment of his back and feet, including physical therapy at least three times a week or six sessions for two weeks, at the Philippine National Police (PNP) General Hospital at Camp …

  • Noul may intensify into typhoon – Pagasa
    Noul may intensify into typhoon – Pagasa

    Tropical Storm Noul was forecast to intensify into a typhoon before it enters the Philippine area of responsibility today, but state weather forecasters said it was unlikely to hit landmass. The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) said Noul, which will be locally named Dodong, is expected to skirt the country’s eastern coast, bringing light to moderate with occasional heavy rains over areas in Central and Northern Luzon this weekend. Rene …

  • US fans sue Manny for hiding injury
    US fans sue Manny for hiding injury

    Two Nevada men filed a class-action lawsuit against Manny Pacquiao on Tuesday, seeking millions in damages because they say he fraudulently concealed a shoulder injury before his defeat to Floyd Mayweather Jr. It is just the latest fallout from Mayweather’s victory in Las Vegas on Saturday in a unanimous decision, with Pacquiao saying afterwards that the shoulder complaint hampered his performance in the welterweight world title showdown. The plaintiffs argue that by failing to go public with …

  • Phl expects China to attend APEC summit in November
    Phl expects China to attend APEC summit in November

    The Philippines expects all 21 leaders of Asia-Pacific Economic Cooperation member-economies, including China, to attend the summit here in November. “This is a multilateral meeting, not a bilateral meeting so there is a big difference between the two... when they come here anyway, APEC does not talk of politics, it’s all economic,” Paynor said. Yesterday at the Kalayaan grounds of Malacañang, the Asian Carmakers Corp. (ACC) held a ceremonial turnover of a fleet of BMW vehicles to be used for …

  • Noy to promote Phl in Canada
    Noy to promote Phl in Canada

    President Aquino left for the United States and Canada yesterday, bearing news of his administration’s accomplishments and hoping to attract more investments and tourists. Aquino noted the US and Canada are home to hundreds of thousands of Filipinos and have been reliable partners of the Philippines for a very long time. The two countries, he said, are participants in the Asia-Pacific Economic Cooperation summit in November to be hosted by the Philippines. He left the Ninoy Aquino …

  • Philippines says notorious bomb-maker killed by rebels

    MANILA, Philippines (AP) — A Filipino bomb-maker who was one of the country's top terror suspects was killed by Muslim rebels who earlier signed a peace deal with the government, the Philippine military said Wednesday. …

  • Philippines, Japan coast guards hold anti-piracy drills
    Philippines, Japan coast guards hold anti-piracy drills

    Philippine and Japanese coast guard teams staged an anti-piracy drill on Wednesday, featuring the storming of a cargo vessel after a mock hijack, in a show of maritime cooperation between the two nations amid rising tension in Asian waters. Both nations face a challenge from China's growing assertiveness over territorial claims in the South China Sea and the East China Sea, where it uses coast guard and fishing vessels to press into disputed areas. Wednesday's drill was the first held by …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options