Jobs Data Lift U.S. Stocks, Lawmakers Postpone Shutdown

Bikram Pandey
02 Mar, 2011
New York City

U.S. stocks traded higher and U.S. lawmakers approve temporary spending bill that will trim budget by $4 billon. A private survey indicated U.S. companies added more jobs in February. Crude oil gained as unrest in Middle East escalates. Spain

[R]4:10 PM New York – U.S. stocks traded higher and U.S. lawmakers approve temporary spending bill that will trim budget by $4 billon. A private survey indicated U.S. companies added more jobs in February. Crude oil gained as unrest in Middle East escalates. Spain’s unemployment rebound above 20% in January as construction industry shed more jobs.[/R]

U.S. indexes gained after U.S. lawmakers passed a budget bill that will prevent at least for now the shut down of the government. The bill was sent to President Obama for his signature but lawmakers are at odds on how to fund government funding till September 30.

Republicans are looking to trim federal budget and keep spending at the 2008 level and proposed $61 billion of cuts that Democrats balked at. Several lawmakers and analysts are predicting that another temporary spending bill may be needed before an agreement is reached for a wider budget.

The bill to lower $4 billion of programs was approved by a 335-91 vote and the government authority was extended to March 18 from the current March 4 deadline.

U.S. companies added 217,000 jobs in February after January increase was revised to an increase of 189,000, according to the latest survey from ADP Employer Services.

U.S. mortgage applications dropped 6.5%. NetJets ordered 120 Bombardier aircrafts in a deal valued over $6.7 billion. PPL agreed to acquire E.ON's UK distribution business for $6.4 billion. Costco quarterly sales and earnings rose.

BJ’s fourth quarter net income plunged to $10.2 million. Costco second quarter net income surged to $348 million. Joy Global first quarter net income soared to $102 million. Staples quarterly net income quarter rose 17% to $275 million. SINA fourth quarter loss widened to $100.0 million.

The European indexes fell after U.S. crude touched the $100 a barrel mark. Euro area producer price index rose 1.5% in January, Spanish jobless claims soared in February and Swedish current account surplus rose in the fourth quarter. Polish central bank retained key rate at 3.75%.

The UK indexes slid as tensions in the Middle East and Africa escalate and crude oil futures surge. The UK construction PMI rose in February. Whitbread agreed to buy Coffee Nation for £59.5 million. International Power net slumped 85% and Standard Chartered profit improved 28%.

The benchmark index Nikkei declined 2.4% as crude oil surged and the lower house of Japan passed $1.1 trillion budget. The yen strengthened. Exporters and automakers led the decliners.

Stocks in China edged lower after rising for four days in a row and the benchmark Hang Seng index fell 1.4%. Airlines and property developers declined and cement makers fell after rising for two days. China Railway Construction dropped after it halted three construction projects.

Australian stocks closed lower after oil and gold surged and unrest spread in Iran. Fighting continued in Libya and protesters returned to streets in Yemen and Oman. Australian GDP expanded 0.7% in the fourth quarter and increased 2.7% in 2010.

Commodities, Bonds and Currencies

Yield on 10-year bond increased to 3.46% and on 30-year bond rose to 4.55%.

The U.S. dollar increased to $1.385 to a euro and fell against the Japanese yen to 81.88 yen.

Immediate delivery futures of Texas crude oil increased $2.35 to $101.98 a barrel, for natural gas fell 0.05 cents to $3.81 per mbtu and gasoline prices increased 3.62 cents to 301.96 cents a gallon.

In metals trading, copper prices decreased 2.00 cents to $4.47 per pound, gold increased $1.40 to $1,430.90 per ounce and silver rose $0.01 to $34.42.