Jobs report lifts Dow to highest mark since '08
Feb 04
2012
A drop in the unemployment rate to its lowest level in three years propelled the Dow Jones industrial average Friday to its highest close since May 2008, before the financial meltdown later that year. The Nasdaq composite index hit an 11-year high.
The Dow jumped 156.82 points to 12,862.23, its highest mark since May 19, 2008, about four months before Lehman Brothers investment bank collapsed. In May 2008, credit markets were tightening up, subprime mortgages were going sour and Bear Stears had already collapsed.
Before the market opened, the Labor Department said the economy added 243,000 jobs in January. It was the strongest job growth in nine months. The increase in hiring pushed the unemployment rate down to 8.3 percent, the lowest since February 2009.
The surprising data gave financial markets a morning jolt that lasted throughout the trading day. The Nasdaq index closed 45.98 points higher at 2,905.66, its highest since December 2000, during the steep decline that followed the dot-com stock bubble.
The price of ultra-safe Treasury notes dropped, sending yields higher, and the price of oil rose for the first time in a week.
"In this economy, only one variable matters right now, and that variable is employment," said Lawrence Creatura, an equity portfolio manager at Federated Investors. "This report was great news. It was beyond all expectations, literally. The number was higher than even the highest forecast."
The Standard & Poor's 500 index added 19.36 points, or 1.3 percent, to 1,344.90, its highest close since last July. The S&P 500 surged 2.2 percent for the week, its fifth straight week of gains. That's the longest weekly winning stretch since January of 2011.
James Paulsen, chief investment strategist at Wells Capital Management, said the jobs report seems to be evidence that the U.S. economy isn't as vulnerable to a shock from Europe as many had feared. If that's true, then investors should be willing to pay more for stocks.
More evidence that the economy is gaining strength followed the jobs report. A trade group said the service industry expanded at the fastest pace since last February. The government also said factory orders rose 1.1 percent in December, supported by a rebound in orders for heavy machinery.
Bank of America led the 30 stocks in the Dow, rising 5.2 percent. Only two stocks were lower: Merck and Procter & Gamble.
Treasury prices fell, lifting the yield on the 10-year note Treasury to 1.93 percent. When bond prices fall, yields rise. The benchmark 10-year rate had traded below 1.79 percent earlier this week as traders bought U.S. Treasurys on renewed concern over Europe's ongoing debt crisis.
The U.S. jobs figures helped markets in Europe rally on Friday despite further evidence that the 17-country eurozone is heading for recession. Germany's DAX closed 1.7 percent higher, and France's CAC-40 gained 1.5 percent.
Worries over Europe's debt troubles still have the potential to send markets reeling in the months ahead, Creatura said. He expects the S&P 500 to continue surging but still hit patches of turbulence from Europe in the coming months.
"It's not over yet," he said. "Even though it appears our aircraft is taking off, you should still keep your seatbelt fastened."
Among companies whose stocks made large moves:
— Genworth Financial soared 14 percent, the best gain in the S&P 500. The insurance company reported late Thursday that it swung to a profit in the most recent quarter, helped by gains in sales of life insurance.
— Weyerhaeuser gained 5.7 percent after reporting better quarterly earnings than analysts' forecasts. The timber and real estate company's earnings still sank 62 percent.
— Video game maker Take-Two Interactive Software Inc. rose 3 percent. The company reported a 65 percent drop in quarterly profits after the market closed Thursday, but Wall Street's analysts expected much worse.

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09:58 PM
anthras says
Big Dog Solyndra is getting old however in a way it is still in the news. If the Obama adm would release the information that congress is asking for the investigation could conclude and if there is any damaging news it could go away in time. Until they do release the info the situation will be under the surface possibly up till election time. The same could also be said about fast and furious. The Obama adm just keeps stone walling on these two and other items ergo the republicans can play on them up until election time it might be better for Obama to disclose the info now as there would be plenty of time to move on to possibly more positive things.
Also lest we forget the supreme court will be deciding on Obamacare sometime this summer and it could also be very damaging.
08:59 AM
digger nick says
It's Bush's Fault! It's Bush's Fault!
01:48 PM
6079 Smith W says
As I've written: It ain't Mr. Obama lifting the Dow, it's Mr. Bernanke:
http://www.cnbc.com/id/45885906
02:16 PM
6079 Smith W says
David Stockman:
The Bureau of Labor Statistics numbers are bs.
http://www.businessinsider.com/david-stockman-its-true-the-bls-data-is-made-up-2012-2
Hey! If the WH and friends would "fake" a car commercial - why believe anything they spew out?
02:03 PM
sanduskysteve says
illuminoctis - I actually should have said in the lowest of the votes rather than the lowest - however, in some he did get the lowest. Either way - no matter how much Paul should be elected - it is very doubtful that he will.
01:51 PM
goofus says
Yes, it's halftime in america and the chinese have the ball and were down 16 trillion!
01:18 PM
6079 Smith W says
While we're on the subject of Mr. Obama "saving" the American auto industry:
What about Ally Bank, the former GMAC?
It's still about 70% owned by U.S. taxpayers.
http://en.wikipedia.org/wiki/Ally_Financial
11:30 AM
looking around says
I like how the register removed my comment for containing personal information about TAXPAYER driving a white toyota truck when it was he himself that devulged this in his comment about the guy who runs all over downtown around columbus ave a few weeks back! DUH!
11:16 AM
6079 Smith W says
"It's Halftime in America"?
Wonder why the WH and the Dems aren't applauding the "real" first half results of a mismanaged formerly heavy unionized liberal Detroit:
Clint? Where are you?
Oh, that's right, they didn't actually film the commercial in Detroit.
The Remains of Detroit: http://www.time.com/time/photogallery/0,29307,1864272,00.html
06:32 AM
illuminoctis says
@sanduskysteve >.> the lowest votes in every primary?.. where are you hearing/seeing this at?.. then what is up with all the news clips on youtube showing him 2nd in alot of them and he even won a few..
to say that Romney hates Paul, i dunno where you get this information.. i heard they are friendly with one another as are their wives with each other.. one can have opposing ideas and still be friendly..
you say that a vice president has no power, huh?.. funny, i heard dick cheney was the real president from 2000-2008
07:23 PM
origen says
@steve
Ever wonder about all those votes? I mean they are counted in private, By the RNC reps. Romney has been chosen, Same as Obama, By who? Thats easy enough to answer. The United states Government is built on lies (We all know this) As the endgame approaches it is getting harder and harder for them to hide it, Those who want the illusion of a society that is still on firm ground will choose whoever will keep up that illusion the longest (The partys chose the canidates and the electorals pick the president) When the curtain is pulled away the people will see that Both partys (The oligarchy) have sold us down the river and no one will have anything to do with either of them. Right now through unfunded liabilitys the US owes more money than has ever existed, While we owe most of this amount to our own citizens, What will happen when the government tells the people "We dont have it and you now owe so pay up"? We are in a global economy now, Along with that they have to bring us into line with the rest of the world. Its easier to bring a country down rather than raise it up, So guess who is comming down from within? Please look up the IMF and how the government deals with them, It will shock you how we squabble over "cuts" to save money while they throw it away. The facts are this, The illusion has to be kept up for the longest amount of time, If a canidate cannot or will not keep up the illusion they will ignore him. The main stream media ignores Ron Paul, Whos to say the RNC doesnt either?
03:41 PM
sanduskysteve says
Not likely that any of them will pick Ron as the VP - Ron is outgoing and each of them has had their fight with him at one time or another. Perry almost punched him during a commercial break before he dropped out.
And anyone that really believes Paul will win the nomination with the lowest votes in almost every primary is sadly mistaken. The rich and big business wants Romney in there no matter how bad he may be. And he will surely never take Ron with him - they hate each other and nothing different will get done as the VP has no power unless Romney would kick the bucket at some point.
If it is romney and Obama, Obama iwll get the votes - at least this one.
03:18 PM
kURTje says
This has worked for years. Wanna know who will be next CIC? Go to any high school and ask----there's your answer. Proven for years.
03:24 PM
illuminoctis says
this is what i heard, you decide..
the unemployment rate just refers to ppl receiving unemployment checks still..
i heard that if you include the people who can no longer receive benefits, and also people who either are just not looking for a job, or they are but cannot find one and cannot qualify for unemployment.. then the unemployment rate is actually somewhere between 25-30%.. that is massive, if true..
anyone have links to prove or disprove this? i am interested..
P.S. i do not think the republicans will have a problem winning the presidency this time.. i have a feeling that they are about to make Ron Paul the Vice-President nominee, which will unify their voters (instead of dividing them).... i would rather see Paul/whoever, but i guess i would have no choice but to vote Romney/Paul.. it is better than no Paul at all..
02:09 PM
sanduskysteve says
Taxpayer and the rest of the GOP supporters - Obama will definitely win another 4 years if you guys don't get on the ball and stop supporting people that are no better and can't keep their lies straight anymore. Especially those on or from FNC that have had to admit in recent months and years to actually faking Obama interviews and speeches to make themselves look good and generate what appears to be talking points for their side.
The only reason I can think of why someone would edit a speech would be to promote themselves and make the other guy look and/or sound bad.
If hannity does it - you can bet that the rest of them do as well.
Instead of checking out Ron Paul online - you need to check out Fox News and Hannity and Rushbo. Do a search for Jon Stewart and Hannity - there are some really enlightening information there. Including the Hannity admissions.
Yes, global warming is not man-made - so what? Everyone claims we need to get off the oil dependency - but no one wants to do anything about it because when something tries to get done - they are accused of pushing "green" energy. And what's wrong with that? it does work.
The only reason why oil seems to be the big push is because the money (the rich people) are in oil and money is all that counts to republicans.
12:51 PM
goofus says
Quid Pro Quo Rootie Tootie Frootie Brutie
http://www.canadafreepress.com/index.php/article/26650
12:38 PM
The Big Dog's back says
http://www.halliburtonwatch.org/
11:54 AM
Taxpayer says
"Solyndra is geting(?) about as old as hitler?" So the premise is Solyndra = hitler? Or, hitler caused Solyndra? Be careful what you liberal, losers say. Your own proven racist HATE will surface! Ha! Ha! Solyndra is a sore subject for you entitlement whiners? I agree. We must STOP using the total FAILURE and LOSS of over a half BILLION in tax dollars by the liar-in-thief. Instead of using just one FAILURE, let's make sure we include the rest of the calumniation by 0bama and his "green" energy HOAX agenda FORCED on the people. Let's review where tax dollars were spent by the "anointed one" YOU voted for. Beacon Power ($43 MILLION). AgSouth ($80 MILLION). Solar Reserve (Half BILLION). Abengoa SA (Half BILLION-Buy American!). Nevada Geothermal ($100 MILLION-Sen. Harry Reid,D-NV). First Solar ($3 BILLION, Ding, Ding-Winner!). SunPower ($1.2 BILLION). And do NOT forget over half BILLION given to Fisker Automotive for their hybrid car built in Finland! Buy American! POOF! All GONE! Remember, $1 BILLION = One Thousand MILLION!! I WONDER why the liberal media is HIDING all these 0bama success stories? Here is tip for you crybaby, liberal losers. Gas is going UP as reported by the liberal USA Today. It WILL hit $4/Gal. and MORE. It is already speculated to hit $4.60/Gal. in the large cities by May. So, get ready liberals, start your socialist crybaby BLAME now! Let me help you. "It is Bush's fault! Ooo, those EVIL big oil companies and EVIL Wall ST." Your liberal BLAME is so predictable! Ha! Ha! Refiners switch from winter formulas to more expensive seasonal gas to meet stringent ENVIRONMENTAL standards. Oops, WHO voted for these "FEEL GOOD" HOAX standards? How does all that "green" excrement feel now? With renewed tensions in the Middle East (Where WE get our oil) speculators are betting 0bama will FAIL in leadership. A few U.S. and foreign refineries are CLOSED because of the current low demand for gas. The low demand MUST be from all those 0bama jobs that caused the spike of the Dow! "The moment when the rise of the oceans began to slow and our planet beings to heal." (Barack Hussein 0bama, 2008). Lord, it's a miracle! I couldn't even make this stuff up. FOUR MORE YEARS! Ha! Ha!
11:08 AM
6079 Smith W says
The Market giveth; the Market taketh away. Blessed be the Market.
Israel attacking Iran could be the game changer.
If that occurs, some believe that gold and the price of oil will soar higher.
http://www.businessinsider.com/richard-russell-2012s-market-moving-event-will-be-an-iranisrael-war-2012-2
10:56 AM
kURTje says
Drivel. Exaxctly. How true. BABABAAAHABH ABHbh
10:52 AM
looking around says
Moderators have removed this comment because it contained personal information. Discussion Guidelines07:49 AM
6079 Smith W says
coasterfan writes:
"3) where were they when Bush was doing all the crap in 2007 that caused the recession?"
What exactly did POTUS Bush do that "caused" the Great Contraction?
Didn't the Dems take over Congress in Jan. 2007? There's your answer. :)
BTW: One of the major fiscal problems I had with Mr. Bush and the Repubs was the large magnitude of federal spending.
After another $5 trillion, looks like Mr. Obama and the Dems have them beat by a long shot.
The only problem that you should obviously have with Mr. Bush is that he didn't spend enough.
12:40 AM
The Big Dog's back says
http://pleasecutthecrap.typepad.com/main/what-has-obama-done-since-january-20-2009.html
12:33 AM
The Big Dog's back says
Solyndra is geting about as old as Hitler.
11:46 PM
gilamonster says
I must be a wingnut to believe The US Department of Labor fails to include thousands of long-term unemployed or those that stopped searching for work into unemployment calculations; that’s a good vanishing act. This is not Dem or Repub, its how the USDL figure the data for many years now; how do you even argue that. Are you using Obama math where Solyndra is a great taxpayer investment and many more jobs than figured were not shovel-read? HAHA. How many years has it been, might as well just blame Carter.
11:46 PM
origen says
@Coasterfan
Where was the congress in 2007 (Dem controlled) or is it only good to comment when it makes the Repubs look bad? The truth is they both caused it, The difference is the Repubs have swung a different way and the Dems have stayed the course (We all no its a lie a politician is a politician, But Keeping the Bush/Obama course isnt working. Out of control spending doesnt fix anything, It postpones it). As for brain washed people on here, There seems to be more than one and for different partys so its catching.
11:22 PM
coasterfan says
@ 44846GWP: Hilarious post :) You are probably right about most people not reading Taxpayer's rants. I rarely read more than 10% of his drivel, because (has anyone else NOT noticed?) he says exactly the same thing every time regardless of the topic. Missing socks? It's those durn Democracks. Car ran out of wiper fluid? It's those durn liberals. It's obvious that his favorite keyboard shortcut is "cut-n-paste", which kinda makes sense, since that's the way his brain works: listen to Rush, then cut-n-paste talking points into brain. It's easier than having an original thought, you know?
Note to Taxpayer: nobody wants to read a 38-line paragraph, not even the 2-3 semi-literate friends you still have. Break your rants into 4-5 paragraphs, otherwise most people will just scroll right past. And what's with the random capitalized words, anyway?
11:13 PM
coasterfan says
Actually, Taxpayer, Obama wouldn't make it into the list of 25 worst presidents ever. The previous office holder, however, would make it into the Bottom 5, without a doubt. The fact that Obama's entire term thus far has been devoted to fixing all the stuff that Bush screwed up, basically tells all.
Here's why we should all dismiss all the rightwingnuts who have posted on this thread:
1) If this article said the exact opposite, they would still be complaining/blaming Obama for that.
2) they only think statistics are skewed when it makes Democrats/Obama look good.
3) where were they when Bush was doing all the crap in 2007 that caused the recession?
07:17 PM
The Big Dog's back says
I feel so much more enriched since you and T P have spoken.
06:56 PM
patriot5 says
06:42 PM
44846GWP says
Taxpayer, You might as well give it up, I bet most folks don't even read your rants anymore. Get on some meds and then take an english course on how to write.
05:36 PM
Taxpayer says
How is that file pic of the liar-in-thief look? He must truly believe the PEOPLE of this nation are idiotic, liberal, socialistic, loser sheep all willing to be lead down to the kill floor for slaughter. How can anyone continue to LIE to the nation and still believe he "has a gift" or "hope and change" or "yes, we can" or "winning the future?" 0bama knows there are many imbecilic liberals who have blind loyalty and will jump off the cliff at his command even when proven WRONG! You know, like all those losers fainting at his feet? Forget about that? The numbers ARE skewed and it is PROVEN. Come on crybaby losers, WHY isn't 0bama's own liberal media proclaiming how wonderful everything is? Because once AGAIN the numbers are a LIE. Like I have posted previously, if there are so many jobs lifting the Dow to record levels, then WHY is the housing market still DEPRESSED? WHY are you losers not buying up homes in the city? The prices and interest rates are low! WHY is business so anemic? Why is gas going up? WHY are food prices skyrocketing? WHY is 0bama STILL the foodstamp president? This should be catalyst for people getting OFF of entitlements which will make 0bama look good! No report on that?? It is because all the liberal media and the AP-0bama are trying to shore up this FAILURE every chance they get to prove their endorsements were not WRONG. My citation? Check ALL the stories in the Register and ALL the stories on this blog and see for yourselves. That AP-0bama file mugshot will look great with the title, "Worst Single Term President in the HISTORY of the United States of America!" FOUR MORE YEARS! Ha! Ha!
04:47 PM
wiredmama222 says
the unemployment levels dropped because there are people who ran out of unemployment, not because they got jobs.
This is what I hate about statistics....they get everyone going in the wrong direction. They can be twisted this way and that to make something look like it "isn't" and everyone gets all excited about it.
The truth of the matter is, unemployment rolls do not show those who NO LONGER GET UNEMPLOYMENT....and that is a falsehood of their statistics. It does not show these people went back to work, their unemployment just plain ran out.
If wall street, the dow people and the like think this false statistic is a good thing, then they are more dumb than I gave them credit for.
Why is it no one thinks to check and see where these people go when they no longer get unemployment? THEN they would have an accurate accounting of the unemployment in this country.
Instead we have a bunch of knuckleheads who say...."oh, unemployment roles went down, so those people must have gotten jobs". Yeah, right. Not likely. What jobs??????
How stupid is Wall street? The government? They must all be idiots. A child could figure this out.
02:59 PM
abigbear says
bho says "It's not over yet," he said. "Even though it appears our aircraft is taking off, you should still keep your seatbelt fastened."
headed to the 3rd world on air fuel
02:45 PM
abigbear says
CNBC’s Rick Santelli: You know what I said at 8:30 Eastern? We want a million jobs an hour. That’s what we want. What we got looked like a good report. I said, ‘Let’s get the calculator out,’ and I did. And so did a boatload of my sources and big blogs that many people read like Zero Hedge. The labor force participation rate, if you look at non-seasonally adjusted, a fresh low going back to April of ’83. If you look at seasonally adjusted, a fresh low participation rate going back to December of ’81. What does that mean in English? Shrinkage. Shrinkage. 1.2 million people are now not considered unemployed anymore. They just have left the system. So, we need to concentrate on the internals, and eventually we want to watch the fixed income market to see if some of this sets in as people do their ciphering.
Listen, if I talk about a stock that had a great report, but I don’t point out the fact that there was a one-time tax credit that did it, am I doing my viewers a service or a disservice? Listen, when you look at the body counts on the establishment survey, we created jobs. That’s a good thing. There’s my perk. But I’m sorry, if you look at the other side, you look at the household survey, yes, we had this big seasonal adjustment. You can go to the BLS, you can see their economic release, you can see their situation summary. And we can see that ‘not in labor force’ moved from about 86.6 million to 87.8. There’s your 1.2 million. And we do see the asterisk, there’s been an adjustment on population. That’s the way it goes. We make an adjustment. The last 12 months needed to be adjusted. It is what it is.
Post Continues on www.realclearpolitics.com
12:50 PM
6079 Smith W says
Did you know that the formula to count unemployment changed since 1984?
"If the 1984 formula was used today, the unemployment rate would be ~ 22.5%. How can this be? Take a look at “labor force participation rate” and “discouraged worker” and “birth-death model”."
http://investmentwatchblog.com/did-you-know-that-the-formula-to-count-unemployment-changed-since-1984/
http://www.bls.gov/home.htm
11:14 AM
6079 Smith W says
“These numbers will go up and down in the coming months.” - Barack Obama, Feb. 3, 2012
No sh*t. What a @#$% genius. LMAO!
11:07 AM
A.W.U says
10:54 AM
The Big Dog's back says
Darth (winnie) still sees a storm in the sunshine.
09:46 AM
6079 Smith W says
It's been called the "Bernanke put." Mr. Benanke is pumping dollars into the economy - they gotta go somewhere.
--------------------
Also, historically, the Dow tends to rise during a presidential election yr., 2008 was the recent exception.
"Kathy Lien at GFT, notes that stocks usually perform well in election years–over the past five decades, stocks fell only four out of the 17 presidential-election years. (The outlier, of course, was in 2008. That thing called the financial crisis had a hand in that)."
http://blogs.wsj.com/marketbeat/2011/12/27/dollar-stocks-tend-to-rise-in-election-years/
------------------------------
“On the other hand, what you’re now seeing is profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal if you’ve got a long-term perspective on it.” - Barack Obama, Mar. 3, 2009
The Campaigner-in-Chief obviously didn't know that P/E ratio stands for price-earnings ratio.
What an economic and financial putz.
09:38 AM
kURTje says
Yes 44846GWP. Further if one checked EACh county in EACh state, numbers would portray diiferences too. Glad Reagan is dead......not giving him handouts helps the national debt a bit.
09:29 AM
mikel says
how many of those have either run out of benefits or just gave up looking for a job? the numbers are tainted!
09:01 AM
6079 Smith W says
It ain't just the employment numbers, it's also GDP.
Go ahead and compare Mr. Obama to Mr. Reagan, but his first term could end up looking like Mr. GHW Bush's. Economic recovery came too late to save his presidency in Nov.:
http://online.wsj.com/article/SB10001424052970204662204577201382359559586.html
12:23 AM
origen says
Of course the numbers are up, The banks keep printing money. Too bad those who cannot count can still vote, They dont understand economic theory at all as long as they get free stuff (The scraps left over after the admins friends get through) Maybe when the system fails they will be happy, Then everyone will know(Alot of us already do) Whos fault it is.
11:14 PM
44846GWP says
The national unemployment rate is now 8.3%, the unemployment rate in 1984 was 8%, under Reagan. Didn't hear any goom and doom from the republipukes then, but now they act like the country is going to close its doors. Give me a break, OBAMA 2012!!!
10:05 PM
A.W.U says
Moderators have removed this comment because it contained obscenity. Discussion Guidelines