Market briefing---Matt (slow)
NYSE---Deb (fast)
Nasdaq---Julie (slow)
again above average for the new york stock exchange. 1.4 billion shares traded. the six-month average just about 1.3 billion. if we look at the nasdaq, similar strength there, the rising stocks outpacing the falling stocks by a 3-1 is margin. 2 279% higher. and the broader index is also showing strength here today. the nyse composite, 1.3% higher. 1.5 for the annex. and the russell 2000, 2.5% higher. the wilshire index, 1.4% higher today. as we said at the open, it was an interesting day for bonds and stocks to see both heading in the same direction. the 10, five, three and two all on the rise today. and last but not least, a check of the currency market. dollar buying less yen, euro and pound both higher. that’s dollar weakness across the board. 6 for a closer look at the labor picture we go to the economic center. mike is standing by in washington. mike?
>> no harm no foul, matt. the u.s. economy added fewer jobs and forecast in january restrained by a decline in factory employment. but at the same time, the unemployment rate fell again. payrolls rose by 112,000 while the gain was the most in three years, payrolls roseanne average during the record 10-year expansion. economists expected payrolls to rise by 175,000. manufacturers cut 11,000 jobs last month. that was the 42nd straight decline since august 2000. service producing industries, which includes retailers, rose less than expected 105,000 last month. 32,000 rise. a decline in the jobless rate, the lowest in two years. there were also signs companies may be starting to ratchet up hiring.
>> if you look at some of the leading indicators in this report, the number of hours worked, that is continued to go up, the number of overtime hours that manufacturers continues to go up as well. that’s i think offsetting the stage for stronger employment growth going forward.
>> hours worked rose to 33.7 from 33.5. in the manufacturing workweek, rose to 40.9 hours from 40.6 in december. still, one more bit of not soy good news, income increased but not by much, .1% or two cents.
>> ok. thanks very much. michael mckie in washington. today’s gains helped dow and s&p post gains for the week while the nasdaq actually lost a few points. almost getting back to even at the closing. deb is down at the new york stock exchange with more on the action we saw today and for the past five days.
>> well, on that one thing we did see a very broad rally today. of course, all of that really related to many of the things that mike was just talking about. we saw our broadest rally in four months, since october 1. one of the things we did see, nervousness before the jobs report really gave way to the optimism that the federal reserve will likely stay on hold with interest rates. and that really means that investors can put a higher value on some of those future earnings. yet however we saw some of this week’s big gainers show investors spreading their bets and getting maybe just a little bit more defensive just in case those interest rates do go up sooner than expected. on top this week we saw consumer staples, also health care stocks , take a look at the gains we saw there. after that, telecom and materials. some of the best performing stocks in those groops and the consumer staples and health care we saw adolph coors, eli millie and medimunne as well. take a look at some of the stocks this week. investors gravitating towards two of last year’s lagers. in contracts one of the―in contrast, technology stocks down for the week even though they made up for it in today’s session. technology stocks , of course, the biggest gainers last year. and speaking of winners, let’s talk about some of today’s biggest winners. mohawk industries, americans spending a little more on their homes. mohawk at a record high after recording its highest fourth quarter earnings ever. they make things like carpet. also, monsanto was the second best performing in the s&p 500 today. u.b.s. raised the stock to a buy urging that it will raise more seeds in brazil. they genetically engineer the seeds so some won’ting killed by their own weed killer, roundup. other things in today’s session, volume slack off a little bit. even though with the market up some traders met a little disappointed that we didn’t have bigger volume even though it was average. back to you.
>> deb, thanks very much. appreciate your time and your report. the nasdaq had its biggest rally today. in about three months after that jobs data. julie hyman has the details from the nasdaq market site.
>> that’s right. the nasdaq’s 2 279% gain was its biggest since november 24. shares gained, shares of intel and cisco systems were the biggest gainers that we saw, biggest contributors to the nasdaq’s gain after that jobs report came out. the folks are saying that the fed may keep rates on hold longer than they have previously expected so those contributing to the gain for the week. the nasdaq was still down about .1%, the third week that it’s dropped in a row. we haven’t seen a streak like that since last february. for the week level three the big loser in terms of groups, transportation was the biggest gainer and the computer group was the biggest decliner. as for today’s session in terms of some of the stocks that we had on the move, maxim integrated was the biggest percentage gainer in the nasdaq 100. it had its largest gain in 11 month’s time after the company reported second quarter results. sales and earnings both came in ahead of that. also a forecast for its third quarter earnings. that also came in ahead of what analysts had expected. maxim is also seeing the demand is on the rise. demand has been so good that it’s increasing spending on research and development. actually hired some engineers to work on new products. we saw other semiconductor stocks on the rise. broad come, altera and zilinx all rising in today’s session. as for one of the big decliners, its biggest drop in more than three years for american power conversion. it recorded its fourth quarter results. investors are saying that the companies planning to invest to make device that protect the businesses, its clients against electrical surgence. they see this as something that will be boosting expenses and not necessarily as a plus. so that was what helped contribute to that 12% decline in those shares. back to you.
>> ok. thank you very much. the bush administration’s estimate of this year’s $521 billion budget deficit is too high. that’s according to a survey of wall street’s biggest bond trading firms as a result the president may deliver a narrower short fall before the november election. the bond trading firms say the budget deficit for this year will be more like $428 billion, 7.5% below the current forecast. consumer debt shot up by nearly $7 billion in december. that’s about three times as much as the previous month. economists say consumers spent freely during the holiday season. also buying cars and furniture. so in december consumer spending grew more than income. when you look at that monthly increase in consumer credit, however, it’s also important to take note of the rise in total individual indebtedness which broke through another major milestone today. topping the $2 trillion level for the first time ever. if you look at this chart i put together, you’ll notice the white line on the top here, that’s total debt. this is underneath it in the orange line, the nonrevolving debt. that’s going to be car loans and boat loans and personal loans, student loans and what not. and then beneath that still in yellow is what is called revolving debt which is going to be simply credit card debt. and what we also want to look at is the fact of that debt growth compared to the s&p 500 over the past 25 years. again, the white line is the total amount of consumer debt. there’s the s&p 500. clearly an astronomical rise in debt to take us to that $2 trillion level makes the federal budget deficit look comparatively small. when we come back, we’ll talk a fund manager about today’s job numbers.
