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Job strength powers Dow to record

Friday, November 08, 2013 - 02:01

Nov. 08 - Summary: Blue chips hit lifetime high as hiring avoids DC stall; Twitter shares fall on day two; McDonald's sales hurt by Japan; Gap shares surge on October sales gain. Conway G. Gittens reports.

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Wall Street bounces back from a beating as the labor market shows greater signs of life. The Dow roars back to a record close, the S&P 500 up 1.3 percent and the Nasdaq jumps 1.6 percent. Blue chips are up five weeks in a row, the Nasdaq is down two weeks in a row. Surprise. Surprise. The U.S. economy added a stronger than expected 204,000 new jobs in October and hiring for the two months before that was revised higher. The report suggests there was too much fear out there about what the partial government shutdown did to the economy last month, says Wells Fargo Chief Economist John Silivia. SOUNDBITE: JOHN SILIVIA, CHIEF ECONOMIST, WELLS FARGO (ENGLISH) SAYING: "What we really see is that the underlying trend of job growth is really about 180,000 - 190,000, this number was a little bit higher because of retail and leisure and hospitality, which may be overstated, but bottom line is the economy continues to create jobs at a healthy pace." With hiring picking up - the Federal Reserve could start winding down its unprecedented stimulus program, some believe. But with a surprisingly high number of Americans dropping out of the labor face, the unemployment rate ticking up to 7.3 percent, and consumer sentiment shaking heading into the crucial gift-buying season, other economists say the Federal Reserve will keep its bond buying program intact through the rest of this year. In case you were wondering, shares of Twitter down over 7 percent on their second day of trading. A post-debut fall is typical. McDonald's has a new problem on its hands. Global same store sales came in below expectations for the month of October- with the fast food giant now seeing slower sales in Japan, in addition to a weak U.S. Gap was on investors' shopping lists one-day after posting sales at stores opened at least a year ahead of forecasts. The stock gained almost 10 percent in Friday trade. In European action, Shares in France were down after S&P cut the country's credit rating by one notch, other markets showed little reaction.

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Job strength powers Dow to record

Friday, November 08, 2013 - 02:01