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Overnight Markets: US stocks rally as jobs data boosts stimulus hopes
by Himanshu Singh on Oct 23, 2013 at 03:55
Wall Street surged on Tuesday, with the S&P 500 scaling yet another record high, after weaker-than-expected job creation last month fulled expectations that the Federal Reserve will keep its current easy-money policies in place into next year.
The Dow Jones industrial average gained 75 points or 0.49%, to 15,468, the S&P 500 gained 10 points or 0.57%, to 1,755 and the Nasdaq Composite added 10 points or 0.24%, to 3,930.
Shares gained after the government's September nonfarm payroll showed US employers added 148,000 workers last month, well below the 180,000 economists had expected. The data was seen as supporting the Fed's decision to maintain its $85 billion in monthly bond purchases.
Consumer staples was among the best performing sectors, boosted by a 4.2% in Kimberly-Clark Corp (KMB.N) after the maker of Kleenex tissues posted bigger-than-anticipated quarterly profit.
Transocean (RIG.N) shares rose 6% after S&P Dow Jones Indices announced the drilling services company will replace Dell (DELL.O) on the S&P 500 index after the close of trading next Monday.
Shares of cloud software maker VMware Inc (VMW.N) jumped 2.8% a day after it reported a higher-than-expected profit.
Whirlpool jumped more than 11% after the appliance manufacturer reported profits more than doubled in the third quarter and increased its forecast for the year.
Freeport-McMoRan Copper & Gold Inc. jumped 3.8% amid better-than-estimated earnings.
Lockheed Martin Corp. added 3.8% after the biggest US government contractor raised its 2013 forecast as third-quarter profit jumped, defying Pentagon budget cuts.
On the negative side, However, Netflix Inc (NFLX.O) shares fell 9%, giving back gains that followed the release of the company's earnings report on Monday.
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