Modest Employment Gains in December, Durable Orders Revised Higher

Nichole Harper
04 Jan, 2013
New York City

Stocks in early trading in New York lacked direction after a modest increase in net new jobs in December. Manufactured goods orders increased slightly in November but durable goods orders were revised higher.

[R]11:30 AM New York – Stocks in early trading in New York lacked direction after a modest increase in net new jobs in December. Manufactured goods orders increased slightly in November but durable goods orders were revised higher.[/R]

Stocks struggled in early trading in New York after the release of jobs data and factory orders.

Stocks gained at the opening and then declined after the monthly jobs report showed hiring was steady in December but not strong enough to make a dent in unemployment rate.

155,000 Net New Jobs in December

The Labor Department reported American employers added 155,000 jobs in December.

The unemployment rate in the month was 7.8%, matching the revised rate in November from 7.7%.

Employers added 1.8 million jobs in 2012 despite the sluggish economy and ongoing Washington gridlock and anxiety related to the presidential election.

Nearly 12 million people are actively looking for work and millions more have left jobs markets as employers have been reluctant to add more positions.

The largest net jobs creations were seen in healthcare, food services and manufacturing and the governments at all levels continue to shed workers, according to the report.

Manufactured Orders Rose Slightly

Manufactured goods orders gained slightly in November according to a report by the Commerce Department.

Manufactured goods orders that include durable and no-durable goods orders increased $211 million to $477.65 billion.

Durable goods orders in the month were revised higher to an increase of 0.8% on rising demand from metals and machinery industry. Motor vehicles orders increased 2.8% and civilian aircraft orders plummeted 13.8%.

Orders for non-defense capital goods excluding aircraft increased 2.6%. And, orders for non-durable goods that include petroleum, food and clothing declined 0.6%. Petroleum and coal shipments dropped 2.9% on lower prices in the month.

Excluding defense, total factory orders increased 0.1%.

Stocks in Review

Accuracy ((ARAY)) dropped 22% after the radiation oncology company said its fiscal second quarter sales would be below expected by analysts and it plans to eliminate 13% of staff positions.

Avon Products ((AVP)) gained 3% on a broker recommendation.

Eli Lilly ((LLY)) added 4% after the company estimated 2013 earnings that were ahead of expectations set by analysts.

Harvest Natural Resources ((HNR)) soared after the company said it discovered oil at its wells at locations off the coast of Gabon in West Africa.

Lulu Lemon Atheltica ((LULU)) plunged 5% after a broker downgraded stock outlook on valuation and softer comparable sales at stores.