US STOCKS-GE lifts Wall St despite rising unemployment
* U.S. unemployment highest in more than 26 years
* GE shares rise after upgrade
* For up-to-the-minute market news, click [STXNEWS/US] (Recasts, updates to early trading)
NEW YORK, Nov 6 (Reuters) - U.S. stocks rose on Friday as investors took heart after the government said monthly payroll losses slowed, even as unemployment rose above 10 percent.
General Electric Co (GE.N) shares jumped more than 5 percent after a brokerage upgrade, and helped lead the industrial sector higher. The S&P industrials .GSPI gained 1.1 percent.
The market had opened lower after data showed the unemployment rate topped the psychologically key 10 percent level and reached the highest point since April 1983.
U.S. employers cut 190,000 jobs in October and unemployment hit its highest level since 1983. Despite the disturbing headline unemployment number, payroll losses continued to decline, which some investors saw as a mild positive as the hourly work week remained static. For details see [ID:nN06178752] and [ID:nN06177960]
"We have gotten the idea that the number of jobs being lost has been slowing, and that continues," said Kim Caughey, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.
The Dow Jones industrial average .DJI was up 17.84 points, or 0.18 percent, at 10,023.80. The Standard & Poor's 500 Index .SPX rose 2.30 points, or 0.22 percent, at 1,068.93. The Nasdaq Composite Index .IXIC increased 7.87 points, or 0.37 percent, at 2,113.19.
Bailed-out insurer American International Group Inc (AIG.N) dropped 7 percent to $36.42 after it said its main insurance business remained weak. [ID:nN06174086]
(Editing by Jeffrey Benkoe)
