New York - US stocks rose on Friday after data
showed the US jobless rate dropped to a two-and-a-half year low and as European
policymakers again appeared ready to collaborate in tackling the region’s debt
crisis.
US companies stepped up hiring and the jobless rate dropped to
8.6% from 9%, further evidence an economic recovery was gaining
momentum.
“Overall this is an encouraging report on the labour market,” said
David Resler, chief economist at Nomura Securities in New York.
“But we shouldn’t get too excited that we’re going to see four-tenths of a percent decline in the unemployment rate very often.”
“But we shouldn’t get too excited that we’re going to see four-tenths of a percent decline in the unemployment rate very often.”
The Dow Jones industrial average advanced 119.54 points, or 0.99%, at 12 139.57. The Standard & Poor’s 500 Index was up 15.04 points,
or 1.21%, at 1 259.62. The Nasdaq Composite Index put on 31.90 points, or
1.21%, at 2 658.10.
Equities also got a boost after Bloomberg cited sources as saying the European Central Bank was gearing up to lend as much as €200bn ($270bn) to the International Monetary Fund (IMF) in a bid to ease the debt crisis.
Earlier this week, officials told Reuters at a eurozone finance
ministers’ meeting that they had not fixed a figure for a possible increase in
funds for the IMF.
German Chancellor Angela Merkel reiterated her strong support for
the euro, and called for rapid European Union treaty changes to remedy the root
causes of the eurozone’s debt crisis. But she warned that Europeans faced a
long, hard “marathon” to restore lost credibility.
US-listed shares of Research in Motion Ltd dropped 8.7% to
$16.95 after the BlackBerry maker said it will record a pretax charge to write
down the value of its poorly received PlayBook tablet computer.
Google rose 1.1% to $620.77 after the Wall Street
Journal reported the internet group was pondering an internet service to help
consumers shop online with one-day delivery service to cut the loss of Web
traffic to Amazon.com.