Dow Jones average climbs after jobs reportBy MATTHEW CRAFT
The Associated Press | October 05,2012AP Photo
Traders work on the floor of the New York Stock Exchange on a day that saw stocks pushed higher by a pair of encouraging economic reports.NEW YORK — An encouraging report on the labor market and better sales from Costco and other retail stores helped push the stock market higher on Thursday.
The government said that 367,000 Americans sought jobless benefits for the first time last week. That’s an increase from the previous week but fewer than economists had forecast.
The Dow Jones industrial average was up nearly 81 points to 13,575. Bank of America led the 30 stocks in the Dow with a 3 percent surge, rising 26 cents to $9.37.
“It’s not just the jobless claims numbers on their own,” said Brian Gendreau, market strategist at Cetera Financial Group. “They’re coming on the back of ... manufacturing and service-sector reports that were better than people expected this week.”
The stock market was little changed after the Federal Reserve released the minutes from its meeting in early September, when the Fed hatched a new open-ended program to spend $40 billion a month on mortgage bonds. The minutes revealed that all but one member of the Fed’s interest-rate committee voted in favor of the bond-buying effort.
The Standard & Poor’s 500 index rose nine points to 1,459. The Nasdaq composite rose seven points to 3,142.
The job-market report helped push the yield on the benchmark 10-year Treasury note up to 1.66 percent from 1.62 percent late Wednesday. Traders tend to sell Treasuries following better economic news.
The Commerce Department said that orders to U.S. factories came in better than forecasts, even though the 5.2 percent drop in orders was the biggest in more than three years.
Retailers including Costco reported September sales that came in ahead of Wall Street’s estimates. Costco gained $1.83 to $101.45.
The key event this week comes Friday morning when the Labor Department releases its monthly jobs report. Economists forecast that the unemployment rate inched up to 8.2 percent in September from 8.1 percent in August.
In the first few days of October, the major stock market indexes have climbed steadily higher. The Dow is up 1 percent and the S&P 500 is up 1.4 percent.
Among other stocks making big moves:
Google rose $3.68 to $766.27. Google and U.S. publishers announced they had settled a seven-year dispute over Google’s book-scanning project. A lawsuit filed by authors remains, though.
Sprint Nextel sank 3 percent, or 16 cents, to $5.04. Reports said the wireless carrier may launch a competing bid for MetroPCS Communications. That would pit Sprint against Deutsche Telekom, which plans to merge MetroPCS with its T-Mobile USA unit.MORE IN National / World BusinessNEW YORK — Natural gas, the nation’s most prevalent heating fuel, is getting cheaper just as... Full StoryDALLAS — The 131-year-old Texas boot-maker Lucchese is kicking up its heels — literally. Full Story
- Most Popular
- Most Emailed
- RICHARD'S POOR ALMANACK: Capt. James Cook discovers and names Christmas Island, Brits develop and test H-bombs there in 1957-58; 100 years ago today, Christmas truce takes hold on Western Front in France, combatants observe the holiday.
- RICHARD'S POOR ALMANACK: Gen. Wm. T. Sherman concludes March to the Sea, secures Savannah, Ga., offers the city as Christmas gift to Pres. Lincoln; N.Y.'s Lincoln Tunnel opens in 1937; first gorilla born in captivity, Colo, celebrates 58th birthday today.
- TOMORROW'S HEADLINES TODAY: Brent Curtis reports on the probe into a city bar fight involving police officers; Vt. Yankee has its last media day event before final shutdown next week; Depot Park hosts annual vigil to raise awareness of plight of homeless.
- TOMORROW'S HEADLINES TODAY: Vermont Gas Systems puts Phase 2 on hold as the latest estimate for Phase 1 takes a 27 percent leap upward, to a total of $157 million; U.S. Attorney Tristram Coffin quits for job with private firm; police cite man in pot bust.
- RICHARD'S POOR ALMANACK: In 1972, Christmas bombing of North Vietnam ordered by President Richard Nixon, most lethal strikes of the war; in 1989, U.S. invades Panama to depose, arrest and charge Gen. Manuel Noriega with drug trafficking, racketeering.
- TOMORROW'S HEADLINES TODAY: Gov. Peter Shumlin announces demise of his single-payer health insurance initiative; convicted first-degree murderer Alan Prue sentenced to 50 years for killing teacher Melissa Jenkins; veterans chafed about park naming snub.