Stock Jumps on Solid Employment Data

Published on Friday, 03 February 2012 13:39 Written by J Hawk

New York, February 3^rd (TradersHuddle.com) – U.S. stocks opened at higher levels this morning as the United States reported favorable employment and non-manufacturing data.

The Dow Jones Industrial Average rose more than +150 points on the opening or 1.2 percent to 12,856. The broader indexes also rallied, with the S&P 500 index adding +17, or +1.2 percent and the Nasdaq Composite gaining + 40 points or +1.4 percent.

At midday, the Dow held on to most of its earlier gains, up  +136 or +1% to  to 12,841, while the broader based indexes also higher with the  S&P 500, gaining +16or +1.2 percent to 1,341, and the Nasdaq Composite index better by +40 or +1.4 percent to 2,899, its best level since 2001.

U.S. employment numbers were this morning’s big market movers, with the closely watched Non-Farm Payrolls number showing the U.S. economy had added 240K jobs last month, significantly higher than the analyst consensus of 150K. In addition, he U.S. Unemployment Rate dropped from 8.5 percent to 8.3 percent.

Also out this morning was the Institute for Supply Management’s Non-Manufacturing PMI number, which came out at 56.8, also beating analyst expectations of a 53.1 print. Nevertheless, U.S. Factory Orders came out lower than expected, rising just +1.1 percent, versus an expected rise of +1.5 percent.

U.S. Stocks in the News

Tyson Foods (NYSE: TSN) stock was up +0.92 or +4.94 percent midday to $19.54 per share, after the company reported net income for the first quarter fell by 48 percent from one year ago. The country’s largest meat company attributed the decline in profit margins came from higher feed costs. Tyson reported net income for the quarter ended December 31^st was $156 million or 42 cents per share, compared to $298 million or 78 cents per share in the same quarter last year. Revenue was higher at $8.33 billion compared to $7.62 billion last year. Despite the lower profit, the earnings beat street estimates which expected earnings to come in at 34 cents per share.

Weyerhaeuser (NYSE: WY) stock was trading up +0.65 or +3.23 percent at midday to $20.79 per share, after the company reported net income for the fourth quarter had dropped to $65 million or 12 cents per share, compared with $171 million or 32 cents per share in the same period one year ago. Excluding restructuring and plant closures, profit was 14 cents per share. A survey of 10 analysts conducted by Bloomberg called for the company to release earnings of 6.4 cents per share.

Gilead Sciences (NASDAQ: GILD) stock was up +3.98 or +8.07 percent midday to $53.29 per share after the company reported positive results from an experimental drug for the treatment of hepatitis C, and despite reporting lower than expected earnings out late Thursday. Gilead reported earnings of 97 cents per share for the fourth quarter versus 95 cents per share in the same quarter one year ago. The analyst consensus for fourth quarter earnings called for $1.05 per share. Nevertheless, sales rose 10 percent to $2.2 billion, up from $2.18 billion in Q4 of 2010.

Bank of America (NYSE: BAC) was surging 4.6 percent to $7.79, posting the biggest gain in the blue chip index, following the improved jobs figures. A lawsuit from New York Attorney General to all-major banks over fraudulent and deceptive foreclosure fillings had little impact in the session, amid a broad rally in the financial space.

Edward Lifesciences (NYSE: EW) was plunging 9.5% to $73 as participants reacted to earnings that fell short of expectations. The maker of tissue replacement heart valves, heart valve repair products, and hemodynamic monitoring devices was still trading above calculated support at $62.69.