U.S. Payrolls Rise 171,000 in October, Factory Orders Up 4.9%

Nichole Harper
02 Nov, 2012
New York City

Stocks in New York traded higher after employers added more than expected jobs in October and data for September and August were revised sharply higher. Unemployment rate increased to 7.9%. Factory orders increased 4.9%, largest increase in a year.

[R]10:15 AM New York – Stocks in New York traded higher after employers added more than expected jobs in October and data for September and August were revised sharply higher. Unemployment rate increased to 7.9%. Factory orders increased 4.9%, largest increase in a year.[/R]

Stocks in New York trading opened higher after employers added more than expected jobs in October and the gains of September and August were revised higher.

The Labor Department announced today that employers added 171,000 positions in October and September gains were revised to 148,000 from 114,000 and August increase was lifted to 192,000 from 142,000.

In a separate survey based on different sample participants, the government agency estimated unemployment rate increased to 7.9% from 7.8% in September.

The latest monthly jobs increase is the 25th gain in a row as the private sector expands the payroll in a slow and steady recovery. However, of the 12 million people looking for work 40% are unemployed longer than six months.

Factory orders increased 4.8% in September according to the latest data released by the Commerce Department. Excluding transportation, orders increased 1.4%. The September month increase was the largest gain in a year.

Transportation orders increased 31.3% and non-durable goods rose 1% after rising 2.2% in the previous month.

In European trading, indexes were generally flat after the mixed batch of earnings and manufacturing slowed down across the region in October.

Telecom stocks were hit hard after Deutsche Telekom is said to cut its dividend following similar moves by France Telecom and Telefonica.

In Asian markets, Nikkei in Tokyo traded higher following the gains in New York in the overnight trading and more corporations reported weak earnings outlook. Nikon joined Sony, Panasonic, Sharp and Ibiden and lowered its fiscal year outlook.

Stocks in Review

Chevron Corp ((CVX)) declined 1.5% after the second largest U.S. oil company reported third quarter net income declined 33% to $5.25 billion or $2.69 a share from $7.83 billion or $3.92 a share a year ago.

Falling oil and natural gas production in the last one year and a huge fire at one of the California based refinery also affected the margins.

Starbuck ((SBUX)) soared 10% after the operator of coffee chain reported higher than expected fiscal fourth quarter on strong traffic growth in the Americas. The company also raised its fiscal 2013 outlook.

Priceline.com ((PCLN)) soared 9.8% after the online travel booking service reported third quarter earnings and revenues ahead of expectations on better than expected growth in Europe.