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Re: latest jobs and other economic news
title changed from the Reuters one; eflU.S. stocks rose on Friday as investors took the view that lukewarm jobs data should keep the Federal Reserve from raising interest rates any time soon... The government reported 112,000 nonfarm jobs were created in January, below Wall Streetâs average estimate of 150,000. That indicated that the recovery is moving in the right direction, but not too quickly that the Fed will be forced to hike interest rates to cool an overheating economy. "The positive is that interest rates are probably going to remain low for a longer period of time than people were expecting because you didnât see the job growth people expected," said Jay Finkel, senior equity trader at fund firm Lord Abbett & Co. The Dow Jones industrial average was up 82.52 points, or 0.79 percent, at 10,578.07. The broader Standard & Poorâs 500 Index was up 10.83 points, or 0.96 percent, at 1,139.42. The technology-laced Nasdaq Composite Index was up 28.09 points, or 1.39 percent, at 2,047.65. The odds of the Federal Reserve increasing short-term U.S. interest rates this summer for the first time since May 2000 lengthened after the jobs data. Stock investors like lower interest rates as they tend to spur consumer spending and boost corporate profits by keeping down the cost of borrowing. "The news is good, but not as good as everyone had hoped for," said Edgar Peters, chief investment officer at PanAgora Asset Management Inc. "Overall, it points to a continued, stable recovery, although it is not overwhelming." stable is good, it implies sustainability The Labor Department also said the unemployment rate fell to 5.6 percent last month, the lowest in two years, from 5.7 percent in December. Posted by: rkb 2004-02-06 |
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