NEW YORK—U.S. stocks began the first week of December with a bang, as the Dow Jones Industrial Average shook off European debt worries and a weak jobs report to finish 376 points, or 3.4 percent, higher this month.
After two torrid trading sessions last Wednesday and Thursday, stocks were able to squeeze out another gain late last Friday, as Wall Street bull fended off a weak U.S. unemployment report that came in far worse than previously predicted.
Last Friday, the Dow gained 0.17 percent, while the S&P 500 Index rose 3 points, or 0.26 percent. The Nasdaq Composite Index jumped 0.5 percent, or 12 points. All major indices were higher month-to-date.
Stock markets were partially encouraged by a tumbling U.S. dollar, its value declined versus a basket of foreign currencies, a sign that exports and other commodities will see a sharp increase in sales volume.
A big hit came from the November jobs report. The U.S. Department of Labor said last Friday that U.S. nonfarm payrolls added only 50,000 jobs, more than 100,000 fewer jobs than most economists predicted. The unemployment rate also climbed from 9.6 percent to 9.8 percent, the highest level since April.
Given the dismal jobs data, some analysts predict another round of quantitative easing by the Federal Reserve. “QE2,” as it was called, flushed more than $600 billion in cash into the markets. The Fed cited the high unemployment rate as a main driver for its recent stimulus strategy.
After two torrid trading sessions last Wednesday and Thursday, stocks were able to squeeze out another gain late last Friday, as Wall Street bull fended off a weak U.S. unemployment report that came in far worse than previously predicted.
Last Friday, the Dow gained 0.17 percent, while the S&P 500 Index rose 3 points, or 0.26 percent. The Nasdaq Composite Index jumped 0.5 percent, or 12 points. All major indices were higher month-to-date.
Stock markets were partially encouraged by a tumbling U.S. dollar, its value declined versus a basket of foreign currencies, a sign that exports and other commodities will see a sharp increase in sales volume.
A big hit came from the November jobs report. The U.S. Department of Labor said last Friday that U.S. nonfarm payrolls added only 50,000 jobs, more than 100,000 fewer jobs than most economists predicted. The unemployment rate also climbed from 9.6 percent to 9.8 percent, the highest level since April.
Given the dismal jobs data, some analysts predict another round of quantitative easing by the Federal Reserve. “QE2,” as it was called, flushed more than $600 billion in cash into the markets. The Fed cited the high unemployment rate as a main driver for its recent stimulus strategy.
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