NEW YORK, Jan. 6 (Xinhuanet) -- U.S. stocks surged to four-year highs for the fourth day in a row to end the first week of 2006 with a bang Friday.
The gains came after news that U.S. job growth slowed in December to 108,000 even as the unemployment rate fell to 4.9 percent. November's increase of 305,000 was more than the 215,000 originally reported. That brought the two-month average to more than 200,000.
The unemployment rate fell to 4.9 percent from 5 percent. The lukewarm employment report convinced traders that the Federal Reserve will soon end its 18-month rate-tightening campaign.
Stock indexes were not deterred by a jump in oil prices. Crude oil for February delivery added 2.3 percent to 64.21 dollars a barrel in New York, for the first time above 64 dollars in almost three months on signs that economic growth will push fuel demand higher worldwide.
On company news, Best Buy, the No. 1 U.S. consumer electronics retailer, said December same-store sales rose 5.8 percent and will help push fourth-quarter earnings growth to 11 percent. RBC Capital Markets analyst Scot Ciccarelli estimated same-store sales gains of 3.5 percent. The shares added 3.19 dollars, or 7.3 percent, to 46.69 dollars for the second-best rally in the S&P 500.
Google, the most-used Internet search engine, headed for a record close, adding 16.51 dollars to 467.75 dollars. Goldman increased its price estimate to 500 dollars from 400 dollars based on earnings. Google is up 13 percent this year after upgrades or increases in target prices from at least three Wall Street firms.
The Dow gained 77.16, or 0.71 percent, to 10,959.31. The Dow advanced 165 points through Thursday. The average has not closed above 11,000 since June 7,2001, before the Sept. 11 attacks.
Broader stock indicators had their best finish since May 2001. The S&P 500 was up 11.97, or 0.94 percent, at 1,285.45, and the Nasdaq climbed 28.75, or 1.26 percent, to 2,305.62.
Advancing issues outpaced decliners by more than 3 to 1 on the New York Stock Exchange, where volume of 1.78 billion shares lagged the 1.79 billion shares that changed hands on Thursday.
For the week, the Dow gained 2.26 percent, the S&P 500 jumped 4.55 percent and the Nasdaq rose 2.98 percent. Enditem |