U.S. Payrolls Expands 151,000, Unemployment at 9.6%

Bikram Pandey
05 Nov, 2010
New York City

U.S. stocks traded nearly flat after the release of better than expected employment report. U.S. employers added jobs for the first time since May. Private employers in construction and retail led the net new jobs additions. Unemployment stayed at 9.6%. Commodities increased and the dollar gained.

[R]10:40 AM New York – U.S. stocks traded nearly flat after the release of better than expected employment report. Private employers in construction and retail led the net new jobs additions. Commodities increased and the dollar gained.[/R]

U.S. stocks surged in the morning after the release of employment report. The larger than expected gains in private sector lifted indexes sharply higher in the early trading.

The S&P 500 index edged up 0.4% to 1,225.72 and the Nasdaq and the Dow indexes trade near flat line.

U.S. payrolls increased 151,000 in October after dropping the revised 41,000 in the previous month, according to the latest data from the U.S. Labor Department. Unemployment in the month hovered at 9.6%

Net private hiring increased 159,000 but manufacturing payroll declined 7,000. The employment gains were driven by increase in services of 146,000. Government agencies lowered the payrolls in the month. Federal government cut staff by 1,000 and state and local government lowered employment by 7,000.

The October employment report is the first after the completion of census conducted every ten years and the federal employment declined to 6,000 from the peak of 586,000 in May.

The average hours worked each week increased to 34.3 from 34.2 and hourly earnings increased to $22.73 from $22.68 in September.

Stocks on Move

American International Group Inc declined 2.2% after the insurance giant operating under the supervision of the U.S. Treasury reported third quarter loss on the cost of repaying the bailout.

Atmel Corp ((ATML)) soared 10% after the chip designer and maker reported quarterly sales of $444.3 million.

Blue Nile Inc ((NILE)) increased more than 3% after the online diamond and jewelry seller said quarterly sales will be near $115 million.

Starbucks Corp ((SBUX)) gained more than 2% after the coffee chain reported adjusted earnings o 37 cents a share.

TTM Technologies ((TTMI)) soared 12% after the circuit board maker reported adjusted net in the fourth quarter of as much as 35 cents a share.