2/3/2012 12:07 PM ET
(RTTNews) - With traders reacting positively to a much better than expected jobs report, stocks have moved sharply higher over the course of the trading day on Friday. The markets are benefiting from broad based buying interest on optimism about the economic outlook.
The major averages have moved roughly sideways in recent trading, hovering near their best levels of the day. The Dow is up 134.12 points or 1.1 percent at 12,839.53, the Nasdaq is up 39.72 points or 1.4 percent at 2,899.40 and the S&P 500 is up 15.96 points or 1.2 percent at 1,341.50.
Much of the strength on Wall Street stems from the release of a much better than expected report on the employment situation in the month of January, with the report showing stronger than expected job growth and an unexpected drop by the unemployment rate.
The Labor Department report showed that the non-farm payroll employment jumped by 243,000 jobs in January following a revised increase of 203,000 jobs in December. Economists had expected employment to increase by about 140,000 jobs.
With the stronger than expected job growth, the unemployment rate unexpectedly fell to 8.3 percent from 8.5 percent in the previous month. The drop pulled the unemployment rate down to its lowest level since a matching number in February of 2009.
Adding to the positive sentiment, the Institute for Supply Management released a report showing that its index of activity in the service sector jumped to an eleven-month high in January.
The ISM said its non-manufacturing index rose to 56.8 in January from a revised 53.0 in December, with a reading above 50 indicating growth in the service sector. Economists had expected the index to edge up to 53.3 from the 52.6 originally reported for the previous month.
With the bigger than expected increase, the index rose to its highest level since coming in at a reading of 59.0 in February of 2011.
Among individual stocks, shares of Tyson Foods (TSN) have surged up by 5.1 percent after the meat processor reported better than expected first quarter earnings and said it expects its beef segment to be profitable in 2012.
Weyerhaeuser (WY) is also turning in a strong performance after the lumber and real estate company reported much better than expected fourth quarter earnings.
Sector News
While broad based buying interest has contributed to significant strength in a variety of sectors, networking stocks are turning in some of the best performances. Reflecting the strength in the networking sector, the NYSE Arca Networking Index has jumped by 3.9 percent to a six-month high.
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