This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.guardian.co.uk/business/2013/apr/25/markets-climb-us-employment-boost

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Markets climb as drop in US unemployment claims cheer investors Markets climb as drop in US unemployment claims cheer investors
(5 months later)
US stocks climbed Thursday as investors were encouraged by a decrease in the number of claims for unemployment benefits last week and several strong earnings from companies.US stocks climbed Thursday as investors were encouraged by a decrease in the number of claims for unemployment benefits last week and several strong earnings from companies.
Weekly applications for unemployment benefits fell 16,000 to 339,000, the second-lowest level in more than five years, according to the Labor Department.Weekly applications for unemployment benefits fell 16,000 to 339,000, the second-lowest level in more than five years, according to the Labor Department.
The Dow Jones industrial average was up 65 points to 14,742 as of 12.42pm ET, a gain of 0.4%. The Standard & Poor's 500 was up nine at 1,588, or 0.6%.The Dow Jones industrial average was up 65 points to 14,742 as of 12.42pm ET, a gain of 0.4%. The Standard & Poor's 500 was up nine at 1,588, or 0.6%.
The drop in jobless claims is especially welcome in a job market that has suffered some recent setbacks. In March, employers added only 88,000 jobs. That was a sharp drop from the previous four months, when hiring averaged 220,000 per month. The unemployment rate fell to 7.6% from 7.7%, but only because more people stopped looking for jobs.The drop in jobless claims is especially welcome in a job market that has suffered some recent setbacks. In March, employers added only 88,000 jobs. That was a sharp drop from the previous four months, when hiring averaged 220,000 per month. The unemployment rate fell to 7.6% from 7.7%, but only because more people stopped looking for jobs.
Many companies have been reporting better first-quarter results, but not necessarily because of stronger economic conditions.Many companies have been reporting better first-quarter results, but not necessarily because of stronger economic conditions.
So far this season, 71% of S&P 500 companies have beat analysts' profit expectations, according to John Butters, senior earnings analyst at FactSet.So far this season, 71% of S&P 500 companies have beat analysts' profit expectations, according to John Butters, senior earnings analyst at FactSet.
The trend has a precedent: Last year, less than half of S&P 500 companies beat revenue estimates in the second and third quarters, according to Butters.The trend has a precedent: Last year, less than half of S&P 500 companies beat revenue estimates in the second and third quarters, according to Butters.
In a report to clients Thursday morning, ConvergEx Group analyst Nicholas Colas noted the higher earnings but said they don't match the "real feel" of an economy still crimped by "lackluster jobs growth, a flattening rate of improvement in the housing market, and incremental government austerity measures."In a report to clients Thursday morning, ConvergEx Group analyst Nicholas Colas noted the higher earnings but said they don't match the "real feel" of an economy still crimped by "lackluster jobs growth, a flattening rate of improvement in the housing market, and incremental government austerity measures."
"If US companies have proven anything in the last four years of subpar macroeconomic results," Colas wrote, "it is that they can make gallons of lemonade from just a few shriveled bits of citrus.""If US companies have proven anything in the last four years of subpar macroeconomic results," Colas wrote, "it is that they can make gallons of lemonade from just a few shriveled bits of citrus."
The Nasdaq composite index was up 27 to 3,296, or 0.8%.The Nasdaq composite index was up 27 to 3,296, or 0.8%.
In other markets, gold futures rose 2% to $1,455 an ounce and the price of crude oil rose 1% to $92.50 a barrel. The yield on the benchmark 10-year Treasury note edged up to 1.72% from 1.71%.In other markets, gold futures rose 2% to $1,455 an ounce and the price of crude oil rose 1% to $92.50 a barrel. The yield on the benchmark 10-year Treasury note edged up to 1.72% from 1.71%.
Our editors' picks for the day's top news and commentary delivered to your inbox each morning.