NEW YORK (AP) — A burst of hiring in February pushed stocks higher on Wall Street.
The Dow Jones industrial average gained 48 points, or 0.3 percent, to 14,378 as of 11:54 a.m. EST Friday. The index surpassed its record close Tuesday and is on track for its sixth straight increase.
The Standard & Poor’s 500 rose four points, or 0.3 percent, to 1,546. The Nasdaq composite advanced seven points, or 0.2 percent, to 3,237.
U.S. employers added 236,000 jobs and the unemployment rate fell to 7.7 percent from 7.9 percent in January, the Labor Department reported. That’s far better than the 156,000 job gains and unemployment rate of 7.8 percent that economists surveyed by FactSet expected.
The strong job growth shows that employers are confident about the economy despite higher taxes and government spending cuts.
Optimism that hiring is picking up has been one of the factors bolstering the stock market this year. Stocks have also gained on evidence that the housing market is recovering and company earnings continue to growing.
Stocks have also been boosted by continuing economic stimulus from the Federal Reserve.
The U.S. central bank began buying bonds in January 2009 and is still purchasing $85 billion each month in Treasury bonds and mortgage-backed securities. That has kept interest rates near historic lows, reducing borrowing costs and encouraging investors to move money out of conservative investments like bonds and into stocks.
Investors have also been pondering what the Fed’s next move will be. That question was in especially sharp focus Friday after the government reported the surge in hiring last month.
Andres Garcia-Amaya at JPMorgan Asset Management said that the strong jobs report may heighten speculation that the Fed may end its stimulus sooner than investors had anticipated, which would be a negative for the stock market.
“If the economy maintains or increases the pace of job creation….that could change the Fed’s stance,” said Garcia-Amaya. “That could mean that the Fed could take the ‘punch bowl’ away.”
The Dow has gained 9.7 percent this year and is trading at record levels, having broken its previous record of 14,164 on Tuesday. The Standard & Poor’s 500 index is up 8.6 percent since the start of the year, and remains 1.1 percent short of its all-time high close of 1,565 set Oct. 9, 2007.
The jobs report strengthens the case of stock market bulls, who say the economy is gaining momentum following a long and tepid recovery after the financial crisis and Great Recession, said JJ Kinahan, chief derivatives strategist at TD Ameritrade.
“It gives hope to those that say this rally isn’t just about the Fed, it’s about the economy recovering,” said Kinahan. “It’s giving people confidence that maybe the economy is turning the corner.”
Twenty one stocks in the 30-member Dow advanced, with McDonald’s logging the biggest percentage point gain. The fast-food restaurant chain reported that a key sales figure fell 3.3 percent in February, but the decline wasn’t as bad as analysts were expecting. The stock advanced $1.54 to $98.63.
The Dow is on course to advance for a third straight week.
The yield on the 10-year Treasury note, which moves inversely to its price, rose to 2.05 percent from 2 percent Thursday.
Among stocks making big moves;
— Pandora gained $1.94, or 17 percent, to $13.66 after the Internet radio company issued a strong profit forecast and said its mobile business was improving. Pandora also said its CEO, Joseph Kennedy, would leave.
— Skullcandy fell $1.51 to $5.21, a loss of 20 percent, after the headphone maker projected a big loss and drop in sales for the current quarter, and said this year’s results will likely be worse than in 2012.
— Foot Locker fell $2.17 to $33.14 even after reporting that its fiscal fourth-quarter profit jumped 28 percent. An extra sales week helped boost earnings, but analysts were expecting more.
More Related Stories
- Insurance company forces out historic women's safe house to build luxury hotel
- Kaitlyn Hunt refuses plea offer, will go to court over high school relationship
- DHS admits "impossible" to control 3D-printed guns
- Journalists file suit against Manning trial secrecy
- Russia: Syrian regime ready to talk peace
- Report: Nearly a quarter of all Americans struggle to afford food
- Ted Cruz against the world
- Louie Gohmert: Women should be forced to carry nonviable pregnancies to term
- 2 men arrested for endangering commercial aircraft
- Oversized load blamed for bridge collapse
- This is what Guy Fieri looks like as a balloon
- Iran hackers aiming at U.S. energy firms
- Lawyers release data in attempt to discredit Trayvon Martin
- Anonymous rallies behind Kaitlyn Hunt
- Bridge collapse: Part of "aging infrastructure"
- Mistrial in penalty phase of Arias case
- Amanda Bynes arrested after hurling bong from window
- Interstate 5 bridge collapses north of Seattle
- Mississippi could begin prosecuting women for miscarriages
- Teenage girl claims she was beaten up for looking like Taylor Swift
- UK Military: London attack victim was a "model soldier"
Featured Slide Shows
Mobile Entertainment: 9 Amazing Drive-In Movie Theaters Still Standingclose X
- 1 of 11
Two-for-one for Everyone — West Wind Solano Twin Drive-In, Concord, Calif. This family-friendly attraction with several spots across the U.S. (including California, Nevada and Arizona) prides itself on offering first-run double features (save for premiere events) on the cheap — which is quite the deal, considering their 65-foot screens are among the biggest in the biz. And if you have great car speakers, even better: squawk boxes of old have been replaced with Dolby quality audio piped through your car’s FM stereo.
For the Four-legged Friendly — Warwick Drive-In, Warwick, N.Y. Northeast city slickers looking for a place to watch their favorite movie stars under the stars need only veer six miles east of Vernon, N.J. What began as a family affair in 1950 has since become a seasonal institution offering rural and urban (and pet!) audiences two movies for the price of one on any of its three giant screens.
Image credit: Gettywarwickdrivein.com
See Stars Collide — Ford-Wyoming Drive-In, Dearborn, Mich. Open year-round (unlike many of its surviving contemporaries), this five-screen staple of the Midwest known as the “largest drive-in in the world” plays host for up to 3,000 cars on any given night. And if the double-feature doesn’t hold your attention, relax; you’ve got the best (car)seat in the house for the occasional overhead meteor shower.
Image credit: waymarking.comwaymarking.com
A Hole (Lot of Fun) in One — Wellfleet Drive-In, Wellfleet, Mass.Built in 1957 and still offering original mono sound boxes for those looking for an authentic experience (or not, as FM stereo is available as well), the summer-exclusive theater hosts double features of first-runs on its giant 100’ x 44’ screen. Come for the movies, stay for the mini-golf and flea market (on select days).
Image credit: Gettywellfleetcinemas.com
Go Big or Drive Home — Bengies Drive-In, Baltimore, Md. The only thing bigger than Bengies’ prolific history (57 years and going) is its main attraction — boasting the biggest theater screen in the U.S. at 6,240 square feet. That’s 52’ x 120’ of pure anamorphic presentation. Complementing its time capsule of a snack bar (unchanged since ’56), previews old and new occupy the venue’s old-timey intermissions between features.
Image credit: Gettybengies.com
Proof That Film is Forever — Shankweilers, Orefield, Pa. While we’re on superlative street, consider stopping at this roadside treasure: America’s oldest drive-in. Operating since 1934, it may not have the frills and pony rides of nearby Becky’s Drive-In, but it’s defied hurricanes and the wear and tear of time. Worth the one-hour drive from Philly.
Image credit: Gettyshankweilers.com
The Gritty Hollywood Reboot — Corral Drive-In, Guymon, Okla. Like a slasher movie menace that died (several times) in the ’80s only to be rebooted years after, the long-vacant Corral Drive-In was resurrected and restored in 2009, providing big entertainment at a nominal fee. And if the $6 adult admission doesn’t make you feel like a kid again, the venue’s inflatable bouncers most definitely will.
Image credit: Gettycorraldrivein.com
Hop the Healthy Highway — Delsea Drive-In, Vineland, N.J. Less than an hour’s trip from Atlantic City, New Jersey’s only drive-in offers the best of both worlds — old school aesthetic outfitted with modern tech and healthier food choices to boot. Open seasonally, with first features beginning around dusk.
Image credit: Gettydelseadrive-in.com
Bring Your Backyard to the Big Screen — Starlight Six Drive-In, Atlanta, Ga. As much a backdoor barbecue as it is a night out at the movies, this six-screen Atlanta drive-in encourages what most in the theater biz forbid: bringing your own food and grilling it. Those looking to add a hip twist of the theatrical to their Labor Day getaway need only stock the cooler and pack some brats or burgers for the Starlight’s annual “Drive-Invasion,” which features a hot-rod show, live music, and B-movies galore.
Image credit: yelp/ivan.s.starlightdrivein.com
And really, what better way is there to cruise the nostalgia highway of old Hollywood than in a MINI Roadster? Allowing all the headroom one needs to see the stars on the screen and those directly above, the 2013 convertible goes the distance where it counts — on the road (obviously), not to mention the discerning driver’s wallet. Never mind that its fun-size frame also makes motoring in and out of tight traffic all the more enjoyable (or parking in even tighter spots for cozy romantics all the more convenient).
Image credit: miniusa.com
Recent Slide Shows
Mobile Entertainment: 9 Amazing Drive-In Movie Theaters Still Standing
The week in 10 pics
The week in 10 pics
The week in 10 pics
- 1 of 11