Trader Gregory Rowe works on the floor of the New York Stock Exchange. (Photo: Richard Drew, AP)
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The Dow Jones industrial average crossed 14,000 several times Friday before falling back a few points. It's the first time the Dow has broken through 14,000 since late 2007. The buying spree was triggered by Friday's release of key economic reports, starting with the January employment jobs and followed by bullish auto sales figures and robust reports on manufacturing, consumer sentiment and construction spending.
In afternoon trading, the Dow was just four points shy of 14,000 and less than 170 points from its all-time high of 14,164.53 on Oct. 9, 2007. The broader Standard & Poor's 500 index was up 1% to just under 1,513. And the Nasdaq composite index was up 1.2% to 3,179.
The yield on the 10-year U.S. Treasury bond was at 1.99%, just a basis point away from 2% -- which it has tiptoed around most of the week. Oil prices continued to rise. The contract price on a barrel of oil traded on the New York Mercantile Exchange was up 21 cents to $97.70. Earlier in the week, the price had been above $98 -- for the first time in months.
Gold prices were higher, up $10.30, or 0.6%, to $1,672.30. In currency trading, the euro was trading up 0.6% against the dollar at 1.367, while the greenback was trading up 0.9% against the Japanese yen at 92.52.
Before the January employment report was released Friday morning, economists had expected payrolls to increase by about 160,000, on target with the government's figures. However, the job creation wasn't even strong enough to keep the unemployment rate steady. It ticked up to 7.9% from 7.8% last month.
On Thursday, the major U.S. stock indexes drifted lower, backing away from new highs. At the close, the Dow lost 0.43%, the S&P 500 shed 0.3% and the Nasdaq composite index reversed course late in the trading session and ended down less than a point.
The Dow gained 5.8% in January and the S&P 500 jumped 5.1% for the month. Both indexes are within shouting distance of setting all-time highs although it may be months before the records are broken.
Asian stock markets were mixed Friday, although losses were stanched by Wall Street's overall sterling performance for January.
Japan's Nikkei 225 index, meanwhile, was once again energized by the yen's continued descent against the dollar. It rose 0.5% to 11,191.
In Europe, major stock indexes in Britain, France and Germany ended the week higher, boosted by investor reaction to the jobs report.
Source: USA Today