Zeev's Turnips Patch-No Politics (ZEEV)

[madrose1]

Stocks End Up on Hopes for Hiring Rebound
Monday March 1, 4:37 pm ET
By Bill Rigby


NEW YORK (Reuters) - Stocks climbed on Monday as investors welcomed manufacturing data that suggested a turnaround in hiring is on the horizon and boosted expectations for Friday's crucial jobs report for February.
ADVERTISEMENT


Sepracor Inc. (NasdaqNM:SEPR - News) led the technology-focused Nasdaq Composite Index higher after the company got conditional approval for a new sleep drug. Intel Corp. (NasdaqNM:INTC - News) helped the Dow Jones industrials higher despite a broker's downgrade.

"The markets are generally reading the tea leaves as being generally good for the economy," said Ozan Akcin, chief market strategist at Puglisi & Co. "I think they're looking forward -- companies are coming out with good guidance, generally speaking."

The monthly manufacturing index from the Institute for Supply Management, known as ISM, showed that manufacturers are gaining enough confidence to hire workers. The employment index part of the survey rose to 56.3 in February -- the highest since December 1987 -- from 52.9 in January.

Investors are hoping the bullish ISM employment data bodes well for February's snapshot of the U.S. labor market on Friday. The U.S. economy has been strengthening, but the sluggish job market has remained a sore spot in the recovery.

The Dow Jones industrial average (^DJI - News) closed up 94.22 points, or 0.89 percent, at 10,678.14. The Standard & Poor's 500 Index (CBOE:^SPX - News) finished up 11.03 points, or 0.96 percent, at 1,155.97. The technology-focused Nasdaq Composite Index (NasdaqSC:^IXIC - News) rose 27.98 points, or 1.38 percent, to end at 2,057.80, based on the latest available data.

Some market watchers said gains were capped by worries over a hike in borrowing costs later in the year. A jump in the prices component of the ISM survey to an eight-year high, mostly due to rising commodity prices, stirred concerns on Wall Street that the Federal Reserve may consider raising interest rates sooner than expected to keep a lid on inflation.

In corporate action, Sepracor Inc. (NasdaqNM:SEPR - News) led the Nasdaq's gains after the company said over the weekend that it received conditional U.S. approval for a new sleep drug, Estorra, and would not need to conduct more clinical trials.

Sepracor's stock spiked $15.99, or nearly 57 percent, to $44.30 and ranked among the most active shares on Nasdaq.

Intel Corp. (NasdaqNM:INTC - News) gained 49 cents or 1.7 percent to $29.69, while Advanced Micro Devices (NYSE:AMD - News) fell 11 cents or 0.7 percent to $14.89. JP Morgan cut its rating on Intel because of indications that sales of laptop computers were slowing and lowered its rating on AMD because of price pressures, according to a market source.

The Dow's biggest percentage loser was Coca-Cola Co. (NYSE:KO - News), after The Wall Street Journal reported that federal investigators are probing the company's dealings with a Japanese company amid allegations the soft drinks maker overstated results for several years.

Coca-Cola shares fell 34 cents or 0.68 percent to $49.62.

Oil-related shares rallied as oil prices surged on persistent concerns over supply. The S&P oil and gas equipment index (^GSPOILD - News) rose 2.2 percent.

Major oil company ChevronTexaco Corp. (NYSE:CVX - News) jumped $1.92, or 2.2 percent, to $90.27. Shares of Exxon Mobil Corp.(NYSE:XOM - News), the world's biggest publicly traded oil company, rose 35 cents, or 0.8 percent, to $42.52.

Trading was moderate, with 1.45 billion shares changing hands on the New York Stock Exchange (News - Websites) , in line with the average 1.4 billion daily average for last year. About 1.7 billion shares were traded on Nasdaq, near the 1.8 billion daily average last year.

Advancers outnumbered decliners about 25 to 8 on the NYSE and by 2 to 1 on Nasdaq. (With additional reporting by Anna Driver and Denise Duclaux)