Market briefing---Bob (fast)
Unemployment rate---Su (fast)
NYSE---Lane (medium)
welcome to world financial report. i’m michael mckee reporting tonight from washington. more details on the economic reports that drove today’s stock market rally on the job front. u.s. bisses adding workers for the first time in eight months. separate reports for managers showing continued expansion in retail, financial construction, and other service industries. su keenan has more on all of that. sue?
>> the unemployment rate held steady at 6.1% last month. the economists say the unexpected growth in jobs t first sign of job growth since january indicates companies are starting to show confidence in the economic recovery. and that’s welcome news for the bush administration. all the economic indicators are voting well. what was lagging was the employment number. it’s satisfying, finally, to see that the employment is beginning to catch up with the economic recovery.
>> let’s get to those numbers. payrolls increased by 57,000 last month. exceeding all forecasts and a bloomberg news survey of 70 economist. and the job loss in august was revised to 41,000 -- that’s less than half the number originally reported. now, manufacturering payroll did shrink, but less than expected. the job loss here came to 29,000. some economists say one month of job growth does not constitute a recovery. the drop in manufacturing jobs the smallest decline since july of last year. it does represent the 38 straight monthly declines. several months of job growth is a better indication of recover roy.
>> we can add a couple hundred thousand jobs so we can see 57,000 do a bit better in october, november, and december , particularly as you get to some of the holiday in some of the sales season and the seasonal hiring that happens in the year.
>> check tout rally here. shares of temporary staffing and employment-related companies rose on the rise in jobs. manpower and kelly services rose to new highs of the year. and the world’s largest specialized staffing company and monster worldwide against u.s. advertising internet sites, both of those shares rose 10%. moving on the latest indication for the service industries. the institute for supply management index for retails, financial services construction, and other nonmanufacturing businesses grew at the second fastest pace ever. it is a drop from last month’s reading which was the highest reading since the survey began. check out the gauge that came in at 63.3 in september, readings have registered above 50 which signals expansion since april. economists say improving consumer and spending suggests the economy is in a recovery that will extend to next year. mike, of course, will be checking on the latest numbers to confirm that.
>> week-by-week, and month-by-month. yes, that’s right. thank you, su keenan. sue gave you the cause, let’s give you the effects on wall street today. the dow jones industrial average higher by 84 points. the s&p 500 rising by nine. and the nasdaq 44 points higher over a 2% gain. volume on the new york stock exchange, 1.5 million shares up about 18% from yesterday. nasdaq volume up about 20% from yesterday, a little over two billion shares. taking a look at the wilshire 5000, the broadest market indicator, 102-point gain over 1% on the day. bonds took it on the chin. the 10-year note falling 1 5/8 on the day. its yield up 20 basis points to 1.2% t. five-year note falling about a point on the day. the dollar doing much better than it has been. it’s up against the yen, the euro, and the pound for the day. and getting close to it for the week. the economy was the story at the new york stock exchange today. it sparked that rally that couldn’t quite hold on to all of its gain, but still, by the close of the trading, the stock market was the gain on the week. lane bajardi is at the big board, lane?
>> thank you very much, michael. the word that the economy seems to be building jobs once again is something that was very much welcomed on the floor of the new york stock exchange. one trader says it’s the last bit of information they needed to understand and to realize and to fully say that this economy is moving forward finally. now, as we take a look at the dow jones industrial average today and we see that chart, you can see that things were well off behind this session. it was up around 9666, the high of the day. things go back later on. but by the end of the day, it was still up under 1%, eight points be 95672. stocks and traders don’t make much the fact that it pulled off by the end of the session. people taking advantage to the rise but not to the extent that would send the dow lower by the end of the day and it was a strong gain with a strong breadth. 3m shares up. new 52-week high. this after the stock split went through here. up 2.5%. it’s not as much as 4% on the day. the catalyst for this, apart, of course, from the economic news, the lehman brothers analyst robert cornell increasing a 2004 profit estimate on the stock . raising the outlook and earnings and to stock markets, i should say. raising the stock price from overweight to equal weight lifting things there. a.m.r. a gainer today. airline names rising. a.m.r. shares up 8%, 93 cents to 1266. the story of the day, mark stearns analyst david stride updating the owner of american airlines from outperform to pier perform on the labor agreement. cost cutting efforts see it rising to 2004. take a look at the retailer, two key names, wal-mart and target rising on the session. economy related. wal-mart shares better by .75%. also target quickly noting it was up 3% outperforming wal-mart in the session. take a look at something that was dropping, the amex gold index here. this one down nearly 5%. a number of gold names also declining, leading to that, newmont, freeport among them. analyst at revco l.l.c. he said it was not a gold story. he said it was a nice day for people looking for an economic recovery in the u.s. low unemployment, strong stocks , the good dollar. all those things not much for the gold bugs out there. back to you.
>> lane bajardi. the new york stock exchange formed a search committee for a chairman richard grasso resigned over his pay package. laurence fink will head the committee. fink will lead seven directors in the exchange to find a permanent leader. another potential scandal brewing at the exchange. the wall street chairman reporting that grasso pressured goldman sachs to buy shares of a.i.g., the insurance company. grasso acted after the insurer complained repeatedly about how the ip surer was being handled on the stock exchange floor. it found no violations of trading but they asked whether they felt undue pressure to purchase the stock . the spotlight is what’s becoming a key issue with the debate surrounding the key issue of the exchange. that is, should the exchange keep the dual role as regulator and marketplace. state pension fund managers from california, kentucky, and new york are skeptical saying that the dual roles have a conflict of interest that will enroll the investor confidence.
>> there’s a great deal of problem for the new york stock exchange now. it needs to be corrected promptly. mr. reid is the first to know that. he knows he needs to act quickly to restore profit in the marketplace.
>> the interim chairman of the big board repeated yesterday that the two functions should remain tightly coupled. reid said yesterday that a preliminary governor nance plan for the stock exchange will be disclosed in about three to four weeks. two brokers were fired who helped partners trade millennium funds. they enabled traders at the hedge fund to illegally profit from mutual fund price that is weren’t available to all investors. merrill-lynch declined to comment on the firings but said it’s investigating whether market timing was taking place at the firm. yesterday, a former trader at millennium partners pleaded guilty to a felony for engaging in afterhours trading. merrill-lynch is a passive minority investor in bloom berle l.p., the parent of this network. gold futures had their biggest one-day drop in six years in new york. it fell 3.5% to $370 an ounce. the stocks and the dollar rallied. meanwhile t price of crude oil in new york rose to about 2% to $3.40 a barrel. that’s the highest close since august 29. stocks as we’ve been saying finished the day higher lifting the benchmark indexes to the biggest weekly gain in more than six months. take a look at where stocks may be headed next with matt tellman, the president and manager of the tellmore fund next
