NEW YORK >> Displaying more of its recent resiliency, the stock market managed a slim advance today despite news that the economy lost jobs last month and that North Korea was pulling out of an anti-nuclear weapons agreement. Stocks rise despite news
about jobs, North KoreaBy Amy Baldwin
Associated PressAlthough modest, the market's gains built on yesterday's big rally, an indication that investors are feeling confident enough in the economy to place more bets rather than cash in profits.
"It is pretty impressive," said Todd Clark, head of listed equity trading at Wells Fargo Securities. "In general, the tone of the market has been much better."
Advancing issues matched decliners on the New York Stock Exchange. Trading volume was light.
After falling as much as 86.60 in early trading, the Dow Jones industrial average closed up 8.77, or 0.1, at 8,784.95. Lifted mostly by yesterday's 180-point surge and a 171-point rally on Monday, the Dow posted its second straight weekly advance, climbing 2.1 percent.
The Nasdaq composite index advanced 9.29 today, or 0.7 percent, to 1,447.75. For the week, the Nasdaq rose 4.4 percent.
The Standard & Poor's 500 index ended down 0.01 at 927.57. For the week, the S&P rose 2.1 percent.
The Russell 2000 index, which tracks smaller company stocks, rose 0.50, or 0.1 percent, to 396.44. It was up 6.87 yesterday and gained 1.6 percent for the week.
The price of the Treasury's 10-year note was up 5/16 point this afternoon, while its yield fell to 4.14 percent from 4.17 percent late yesterday. Two-year Treasury notes were up 3/16 point and yielded 1.76 percent, down from 1.86 percent yesterday.
Investors initially were unnerved by news that the nation's unemployment rate remained at 6 percent in December as a disappointing holiday season for retailers and manufacturers cost more than 101,000 jobs, the biggest loss in 10 months, according to the Labor Department. Analysts expected jobs to rise by 30,000.
But the market still rose advance, a sign that investors believe the market is trying to snap its three-year losing streak in 2003.
"More often than not, the data have been better than people were looking for," said Jack Caffrey, equities strategist at J.P. Morgan Private Bank.
The market's gains were limited, however, by investors considering the ramifications of North Korea's decision to withdraw from the 1968 Nuclear Nonproliferation Treaty.
Brokerage house upgrades made some stocks winners today. U.S. Steel rose $1 to $14.70 after Prudential Securities raised its recommendation the shares to "buy" from "hold."
Abercrombie & Fitch advanced 36 cents to $26.39 after Credit Suisse First Boston upgraded the retailer to "outperform" from "neutral."
Overseas, Japan's Nikkei stock average finished down 0.3 percent. In Europe, France's CAC-40 rose 0.3 percent, Britain's FTSE 100 advanced 1 percent and Germany's DAX index slipped 0.01 percent.
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