Good news on job creation sets bulls loose Dow up 12


December 05, 1992|By Bloomberg Business News

NEW YORK -- U.S. stocks rose yesterday following government report showing that more than 100,000 jobs were created last month.

The Dow Jones industrial average gained 12.15, to close at 3288.68. A rally in General Electric Co., General Motors Corp. and Exxon Corp. accounted for most of the advance.

The NASDAQ Combined Composite and Standard & Poor's 500 indexes rose to record levels. The NASDAQ composite rallied 5.24, to 661.60, while the S&P 500 surged 2.15, to 432.06. The Dow Jones transportation average fell 5.64, to 1430.27, ending a streak of nine straight advances. The American Stock Exchange Major Market index rose 1.28, to 394.96.

Advancing common stocks outnumbered declining issues by more than 4-to-3 on the New York Stock Exchange. Shares of international oil, health care, telephone, electrical equipment and automobile companies led the market's rise. Trading was active, with about 229 million shares changing hands on the Big Board.

"The stock market is in a 'rally mode' where everything's considered bullish," said Jon Groveman, president at Ladenburg, Thalmann & Co.

The latest positive news was released by the Labor Department, which said the economy gained 105,000 jobs in November. It was the largest gain in non-farm jobs since July. The unemployment rate fell to 7.2 percent, the lowest since April, from 7.4 percent in October.

"The strength of the jobs report is another sign that an economic recovery is under way and that means corporate profits are on the mend," said Peter Canelo, investment strategist at County NatWest Securities.

At the same time, the yield on the 30-year Treasury bond slid 5 basis points, to 7.50 percent. The slide in Treasury bond yields is tied to market reports that say the Federal Reserve won't need to raise interest rates for three to four years.

Tyco Toys Inc., Intelligent Electronics Inc., General Motors, Glaxo Holdings PLC and Intel Corp. were the most actively traded issues on the U.S. Composite.

Tyco fell $1.875, to $12.875, after the company said it expects to report a loss of $8 million in the fourth quarter. The stock was the most actively traded issue on the U.S. Composite, with more than 6.4 million shares changing hands.

Intelligent Electronics rallied $1.75, to $11.625, in NASDAQ trading. OfficeMax Inc., a unit of Kmart Corp., said it signed a definitive agreement to acquire Intelligent Electronics' subsidiary BizMart Inc. for about $270 million.

GM rose $1.125 to $33.875. Glaxo Holdings retreated 75 cents, to $25.50, after a more than 1-point advance Thursday.

Intel rose $1.50, to $78.75, in NASDAQ trading.

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