Tepid job news barely dents stock market advance
By The Associated Press
Published: Friday, Aug. 2, 2013, 5:12 p.m.
NEW YORK — A tepid jobs report on Friday barely dented a summer rally on the stock market.
The Standard & Poor's 500 index ended the week 1 percent higher after breaking through 1,700 points for the first time Thursday. The index has risen for five of the past six weeks.
The Dow Jones industrial average rose 0.6 percent and is on a streak of six weekly gains.
On Friday, indexes dropped in early trading as it was revealed that employers added fewer jobs than forecast in July, curbing optimism that the economy is poised to pick up strength in the second half of the year. The market gradually recovered throughout the day, and major indexes ended slightly higher. The gains were enough to set all-time highs for the Dow and S&P.
The government reported that 162,000 jobs were established last month, pushing the unemployment rate down to a 4½-year low of 7.4 percent. The number of jobs added was the lowest since March and below the 183,000 economists polled by FactSet were expecting.
Brad Sorensen, Charles Schwab's director of market and sector research, said the jobs report was “moderately disappointing.”
Investors have been watching economic reports closely and trying to anticipate when the Federal Reserve will start easing back on its economic stimulus. The central bank is buying $85 billion in bonds every month to keep long-term interest rates low and encourage borrowing.
While the jobs report wasn't encouraging, it did make it more likely that the Fed would take its time cutting back on stimulus, said Doug Lockwood of Hefty Wealth Partners. The stimulus from the central bank has been an important factor powering a four-year bull run in stocks.
“As long as there's this concept that the Fed may still need to be involved and stimulate, that's good for both the bond and the stock market,” Lockwood said.
The S&P 500 ended Friday up 2.80 points, or 0.2 percent, to 1,709.67. The index is up 6.4 percent since the start of July. The Dow Jones industrial average rose 30.34 points, or 0.2 percent, to 15,658.36.
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.
- Chocolate prices expected to soar as ingredients grow more expensive
- Pandora sued by record companies
- Pa. unemployment rate falls to lowest since 2008; 12,000 more enter workforce
- Investment in Western Pa. startups reaches 5-year high
- Squeezed by competition, Chobani to expand offerings
- Under the Hood: A chance to take top cars for a spin
- Chrysler’s Easter eggs fun for vehicle owners
- Mazda recalls 109,000 older SUVs
- 2014 Beetle is celebration of 65th American anniversary
- Wages have soared in Pittsburgh, but economy appears to have stalled
- Shale pioneer hires Chesapeake for drilling job