Stocks close at highest level since 2007
NEW YORK — Stocks rose on Friday and posted strong weekly gains, with the S&P 500 index closing at a five-year high, after Congress passed crucial budget legislation and data showed the economy is continuing to add jobs at a moderate pace.
The S&P 500 climbed 7.10 points, or 0.5 percent, to 1,466.47, its highest closing level since Dec. 31, 2007.
The benchmark rose 4.6 percent for the week, its largest one-week percentage gain since the week that ended Dec. 2, 2011.
Before the market opened, the Labor Department reported that nonfarm payrolls rose by 155,000 in December and the jobless rate stood at 7.8 percent.
Economists polled by MarketWatch expected an increase of 160,000 jobs.
November's unemployment rate, originally reported as 7.7 percent, was changed to 7.8 percent after the annual revisions conducted each December.
A report showed that service-sector growth accelerated in December, with the Institute for Supply Management's services-sector index rising to 56.1 percent from 54.7 percent.
Around 651 million shares traded on the New York Stock Exchange. Composite volume topped 3.4 billion.
Financials and materials were the biggest gainers and information technology the biggest weight among the S&P 500's 10 major sectors.
The technology-heavy Nasdaq Composite index gained 1.09 points, or 0.04 percent, to 3,101.66, with shares of iPhone maker Apple Inc. down 2.8 percent.
For the week, the Nasdaq Composite gained 4.8 percent.
The Consumer Electronics Show will take place in Las Vegas next week, with developments in TV sets and smaller tablet and PC-hybrid devices expected to be in the spotlight.
The Dow Jones Industrial Average rose 43.85 points, or 0.3 percent, to 13,435.21, with only six of its 30 components in negative territory.
Alcoa Inc. rallied 2.1 percent, making it the top gainer in the Dow, with the aluminum producer due to report fourth-quarter results on Tuesday, marking the start of earnings-reporting season.
“The focus is going to be on corporate earnings,” Luschini said. “If companies are reporting numbers that match or exceed expectations, then that will invite investors that have been sidelined because of the paralysis over the fiscal cliff” back into the market.
Congress passed budget legislation Tuesday that averted the fiscal cliff, at least in the short term, by raising taxes only on a small portion of the wealthiest Americans and extending unemployment benefits.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Consol, Noble expect at least $325 million from partnership’s IPO
- FedEx to add 50,000 seasonal jobs
- Budweiser’s parent firm wants to buy Miller’s parent company
- UPMC buying New Castle-based Jameson Health System
- Douglas Laboratories sells Klean Athlete: products free from banned substances
- Tobacco growers forced to find profits as buyout checks end in October
- Mylan CEO Bresch sets sights on growth
- U.S. Steel to restructure Canadian subsidiary, halt 2 U.S. expansion projects
- 2 top executives at Dick’s Sporting Goods to retire
- UPS expects to hire up to 95K seasonal workers
- Mylan cuts ties with NFL star charged with child abuse