The S&P 500 increased 1.5 percent to 1,344.90 at 4 p.m. in New York and is up 6.9 percent in 2012. Yields (USGG10YR) on 10-year U.S. Treasury notes climbed 11 basis points to 1.93 percent, the biggest increase since November. The Dollar Index (DXY) was little changed, erasing earlier gains. Oil rebounded from a six-week low, while gold and silver fell more than 1 percent.
The S&P 500 capped a fifth straight weekly gain, its longest streak in a year, and the Dow Jones Industrial Average climbed above its highest closing level since May 2008. The 243,000 increase in payrolls was the most since April and exceeded all forecasts in a Bloomberg News survey. The unemployment rate dropped to 8.3 percent, the lowest since February 2009. Equities extended gains after a gauge of service industries also showed faster-than-forecast growth.
Equities extended gains after a private report showed service industries in the U.S. expanded in January at the fastest pace in almost a year, pointing to strength in the biggest part of the economy. The Institute for Supply Management’s non-manufacturing index rose to 56.8, topping the median forecast of 77 economists surveyed by Bloomberg News for a reading of 53.2.
The S&P 500 has rallied 22 percent since its 2011 low on Oct. 3 as the Federal Reserve pledged to keep interest rates low through 2014, economic data topped estimates and the European Central Bank provided cheaper lending to help banks.
The S&P 500 has recovered after plunging 19 percent between April 29 and Oct. 3. It’s now 1.4 percent away from surpassing its peak nine months ago and reaching the highest level since June 2008.
Earnings beat projections at about two-thirds of the 264 companies in the S&P 500 that reported results since Jan. 9, according to data compiled by Bloomberg. (SPX)
Earnings Season
Profits in the S&P 500 are forecast to rise 9 percent this year to $104.68 a share, according to analyst estimates compiled by Bloomberg. At yesterday’s close, the index was trading at 12.7 times projected earnings in 2012 and 11.2 times predictions for 2013. The benchmark gauge for American equities has traded at an average price-earnings ratio of 16.4 since 1954, according to data compiled by Bloomberg. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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