U.S. stocks jump on encouraging job data

08:32, March 08, 2010      

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Wall Street extended gains on Friday,with all three major averages surging more than 1 percent, as monthly report on job market came in better than expected, an encouraging sign that the economic recovery was well on track.

The U.S. Labor Department said U.S. employers cut a smaller- than-expected 36,000 jobs in February, leaving the unemployment rate steady at 9.7 percent, while economists expected it to rise to 9.8 percent.

Meanwhile, the number of temporary help jobs, which is regarded as a sing for future hiring, rose by 48,000 while the average hourly earnings of employees rose 3 cents to 22.46 dollars. The report was closely watched by the market as the stabilization in the job market is crucial to a sustained economic recovery and investors believed the report may set the tone for the market in the coming one or two weeks.

On relief of concerns for further job market deterioration, investor bought into the market after the market, sending the market to a six-week high.

Adding to the gains, the Federal Reserve reported borrowing by U.S. consumers unexpectedly climbed in January for the first time in a year.

Fed said in Washington that consumer credit increased 5 billion dollars in January after dropping 4.6 billion dollars in December, showing Americans are gaining confidence in the economy and more willing to spend.

As the result, the Dow Jones industrial average rallied 122.06, or 1.17 percent, to 10,566.20. The Standard & Poor's 500 index jumped 15.72, or 1.40 percent, to 1,138.69 and the Nasdaq surged 34.04, or 1.48 percent to 2,326.35.

The technology-heave Nasdaq led the gains as Apple touch an all- time high during the session after the company announced that the iPad will go on sale in the United States on April 3, with preorders being taken beginning March 12.

As for the week, the Dow gained more than 2 percent, while broader indexes jumped more the 3 percent. Notably, S&P's winning streak has been extended to the sixth day.

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