US STOCKS-Wall St gains 1 percent on jobs jump
03/02/2012 at 16:28
* Payrolls report far exceeds expectations * Shares of Tyson Foods rise after results * ISM services index hits highest level in nearly year * Indexes up: Dow, S&P both 1.3 pct, Nasdaq 1.4 pct * For up-to-the-minute market news, see Updates to open By Ryan Vlastelica NEW YORK, Feb 3 Reuters - U.S. stocks rallied more than 1 percent on Friday, extending a rally in equities, after a report showed U.S. job growth surged in JanuaryNonfarm payrolls jumped by 243,000 in January, the Labor Department said, the most since April and far exceeding forecasts. The unemployment rate dropped to a near three-year low of 8.3 percent
"People have been underestimating the economic recovery and the expansion we're going through," said Brad Sorensen, director of market and sector analysis at Charles Schwab in Denver. "This report was really solid and continues a string of solid numbers. Things are better than people have expected." In another upbeat report, the pace of growth in the services sector unexpectedly accelerated in January to its highest level in nearly a year
The steady stream of positive reports has helped fuel a rally in stocks. The S&P 500 is up more than 6 percent so far this year and almost 25 percent since an October low
"We're starting to get extended in the near term, so it wouldn't be surprising to get a little bit of a pullback soon," Sorensen said, adding that he would use it to add to positions
The Dow Jones industrial average jumped 163.52 points, or 1.29 percent, at 12,868.93. The Standard & Poor's 500 Index was up 17.17 points, or 1.30 percent, at 1,342.71. The Nasdaq Composite Index rose 41.01 points, or 1.43 percent, at 2,900.69
So far this week the S&P is up 1.6 percent and on track for its fifth week of gains. The Dow has risen 1.2 percent and the Nasdaq, also set for a fifth straight winning week, is up 2.5 percent
Tyson Foods Inc rose 3.4 percent to $19.26 after quarterly earnings beat expectations
Aon Corp also reported higher-than-expected profit that just beat estimates. Its shares fell 1.2 percent to $48.77. Gilead Sciences Inc climbed 10 percent to $54.39 a day after announcing promising early results from a trial of a hepatitis C drug. It also said adjusted fourth-quarter profit was below consensus
Of the 283 S&P 500 companies that have reported results thus far, 60 percent have posted results that beat expectations, a lower rate than in previous quarters
Earnings this season have been mixed, with fewer companies beating expectations than in recent quarters. Many technology names, including Qualcomm Inc and Apple Inc , have posted blowout quarters, contributing to the recent strength in the Nasdaq
Reporting by Ryan Vlastelica; editing by Jeffrey Benkoe ryan.vlastelica@thomsonreuters.comTel: +1 646-223-6014Reuters Messaging: ryan.vlastelica@reuters.com@reuters.net Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit *BridgeStation: view story .134 For more information on Top News: ============================================================== To access running updates on what's moving U.S. stocks double click on ============================================================== For other U.S. market data and news, click on codes in brackets: U.S. Equities speed guide.......................
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