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U.S. Stocks Rise as Employment Growth Exceeds Forecast

*from www.bloomberg.com, Mar. 8, 2013 (To view original article click here.)

Take Away #1: U.S. Stocks rose as data showed employers added more jobs than forecast last month and the unemployment rate unexpectedly dropped.

Key Facts and Figures:

  • The S&P 500 Index (SPX) approaching a record high, rose 0.2% to 1,546.82 at 12:48 p.m. in New York.
  • The Dow Jones Industrial Average increased 20.05 points or 0.2% to 14,358.54.
  • Trading in the S&P 500 stocks was 3.3% lower than the 30-day average.

Take Away #2: People are starting to hire, and in fact have been hiring for a few quarters.

Key Facts and Figures:

  • Employment rose last month after a revised 119,000 gain in January that was smaller than first estimated.
  • The median forecast of 90 economists surveyed by Bloomberg projected an advance of 165,000.
  • The jobless rate dropped to 7.7%.
  • Hiring in construction jumped by the most in almost six years.

Take Away #3: The Federal Reserve continues stimulus measures as we see record highs.

Key Facts and Figures:

  • The S&P 500 has rallied 1.9% this week, on course for the biggest gain in two months.
  • Jobless-benefit claims fell to a six-week low.
  • The benchmark equity gauge is about 1% below the record of 1,565.15 reached in Oct. 2007.
  • The Dow is at an all-time high.
  • The Federal Reserve embarked on three rounds of stimulus to boost economy.
  • Fed Chairman Ben Bernanke has pledged to continue to buy bonds until the U.S. labor market improves.
  • Ryan Larson of RBC Global Asset Management (U.S.) Inc. said, “While we continue to make all-time highs, it continues to be live by the Fed, die by the Fed.”

Take Away #4: Global stocks rose as economies show signs of growth.

Key Facts and Figures:

  • Global stocks rose as a report showed GDP in Japan expanded an annualized 0.2% in the fourth quarter.
  • A preliminary estimate had shown the world’s third-biggest economy contracted 0.4% in the period.
  • China’s exports increased 21.8% in February from a year earlier, beating the 8.1% median estimate in a Bloomberg survey of economists.
  • Equities paired gains after Italy’s credit rating was cut one level by Fitch Ratings.

Take Away #5: There are numerous sectors and stocks breaking out of the 10-year trading range pointing to a very strong market.

Key Facts and Figures:

  • Restaurant chain, McDonald’s jumped 1.4% to $98.48, its highest level in almost a year.
  • Pandora surged 18% to $13.82, reporting revenue of $125.1 million in the quarter ended Jan. 31.
  • Pandora Chairman and CEO Joe Kennedy resigned unexpectedly.
  • The third-largest U.S. bank, Citigroup added 2.1% to $45.95, as it sought Fed permission to repurchase $1.2 billion in shares a year after its previous request was rejected.
  • The Fed said 17 of the 18 biggest banks could withstand a deep recession and maintain capital above a regulatory minimum.
  • Goldman Sachs, JPMorgan Chase & Co. and Morgan Stanley submitted more optimistic estimates of their capital strength than Fed projections.
  • Goldman Sachs fell 2.6% to $152.58, and JPMorgan, slipped 1.3% to $49.96. Morgan Stanley retreated 1.1% to $22.96.
  • The S&P 500 may climb to 1,600 this year as more stocks participate in the market rally.
  • The index may drop as much as 10% to 15% after it rallied this year without a retreat of more than 3% and investors should take advantage of any pullback to buy equities, says Bank of America’s Mary Ann Bartels.

*To view original article from www.bloomberg.com click here.

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