NYSE Summary

Market Report

Mixed jobs report helps to counter fears of inflation

NEW YORK -- U.S. stock markets jumped Friday after a closely watched monthly employment report showed job creation slowing significantly, helping to ease fears in the market about rising inflation.

The unemployment rate dropped to 4.2% March -- a new 29-year low -- from 4.4% the previous month. Economists had expected the rate to remain steady. But nonfarm payrolls rose just 46,000, far short of the 168,000 expected, with the manufacturing job market contracting for the seventh straight month.

The mixed labor report helped to counter fears in the bond market about the strong manufacturing, construction and consumer-spending numbers released Thursday. Those reports stirred concerns that inflation pressures could begin to grow.
The monthly employment report is closely watched by Federal Reserve Chairman for hints of wage inflation. But thus far, the drum-tight labor market has yet to result in rising wage costs, and the Fed has left interest rates steady.
The bellwether 30-year Treasury bond jumped more than a full point, or $10 per $1,000 bond, in reaction to the data. The long-bond yield, which moves in the opposite direction of its price, dropped to 5.59%. The dollar was little changed against the yen and euro.
Traders noted, however, that thin trading volumes were exaggerating price movements.
While Wall Street's stock traders won't be able to act on any news until Monday, futures on the Standard & Poor's 500-stock index edged higher in electronic trading.
On Thursday, hopes for a pleasant surprise from first-quarter earnings, together with a spurt of new second-quarter investment money, pushed stocks ahead despite the uncertainty about news developments over a long holiday weekend.
Investors still believe that "big, blue-chip U.S. stocks are the place to put your money,"
The Dow Jones Industrial Average rose 46.35, or 0.47%, to 9,832.51 Thursday, in lighter-than-average trading.
The technology-heavy Nasdaq Composite Index rose 31.97 Thursday, or 1.30%, to 2,493.37, leaving it up 13.71% for the year. The Standard & Poor's 500-stock index advanced 7.35, or 0.57%, to 1,293.72, a gain of 5.25% for the year. The Dow industrials are up 7.09% this year.
Stock investors concluded that interest rates aren't going to rise much soon and that corporate earnings could prove robust. Investors also noted that companies issued fewer end-of-quarter earnings warnings than usual. That provoked optimism that actual earnings announcements, which begin next week, could be stronger than expected.
World-wide, stocks advanced in dollar terms Thursday. The Dow Jones World Stock Index rose 1.23. On Friday, the index rose 0.18 to 209.89

In major market action:

Stocks gained on Thursday. On the Big Board, where 701.1 million shares traded, 1,538 stocks rose and 1,474 fell.

Bond prices climbed. The bellwether 30-year Treasury bond added a full point, or $10 for each $1,000 face amount, on Friday. Its yield, which moves in the opposite direction of its price, fell to 5.59%.

The dollar was mixed. It was quoted at 120.44 yen on Friday, compared with 120.55 yen late Thursday in New York. The euro was at $1.0783 compared with $1.0790 late Thursday in New York.