10:30 AM New York – Stocks and indexes traded higher after employers added 157,000 jobs in January. Job additions data in November and December were revised higher and employers added 181,000 jobs a month in 2012.
Stocks in early trading shot up after the Labor Department revised recent job growth higher than initially estimated.
The S&P 500 index increased 0.8% and the Nasdaq Composite Index gained 0.8%.
Employment Revised Higher
U.S. employers added 157,000 jobs in January and hiring data were revised for November and December. Unemployment rate increased to 7.9% from 7.8% in December.
The department uses survey of businesses to calculate jobs growth and household survey to determine unemployment rate.
After the two months data revision, employers added 181,000 jobs a month in 2012 and 2011, higher than previously estimated 150,000.
One significant change in the employment market is the construction industry contribution. Contractors added 28,000 jobs in January and nearly 100,000 jobs in the past four months, reflecting a broader recovery in the housing and construction market.
European markets rebounded after a 2-day slump and the euro reached a new 14-month high after a private survey indicated manufacturing contracted at the slowest pace in January in 11 months.
Asian markets traded higher after two surveys in China reported an expansion in manufacturing at different rates. The official Chinese estimate suggested a smaller increase in manufacturing in January and HSBC survey was revised in the second reading to show faster expansion.
The weaker yen lifted Japanese indexes for the 12th week in a row. The yen dropped to a low last seen in June 2010.
Markets in Mumbai fell sharply after the largest wireless telecom Bharti Airtel reported earnings that missed expectations by a wide margin. The second largest airline is in discussion to sell 24% stake to Abu Dhabi based Etihad as early as this weekend.
Markets in Australia extended rally and jumped to a new high despite the Standard & Poor’s raising a warning that the country is at a “intermediate risk” from the slowdown in China.
Stocks in Review
) gained 51 cents to $115.66 after the oil and gas explorer reported sales in the fourth quarter ending in December rose 1% to $60.55 billion from $59.99 billion in the same period of last year. Net income in the quarter soared 41% to $7.24 billion or $3.70 per diluted share compared to $5.12 billion or $2.58 a share a year ago.
Exxon Mobil Corporation
) slid 48 cents to $89.49 after the petrochemical company reported sales in the fourth quarter ending in December declined 5% to $115.17 billion from $121.61 billion in the same period of last year. Net income in the quarter climbed 6% to $9.95 billion or $2.20 per diluted share compared to $9.40 billion or $1.97 a share a year ago.
) gained 48 cents to $51.99 after the Ireland based diversified company reported net sales in the fourth quarter ending in December slid 1% to $3.47 billion from $3.51 billion in the same period of last year. Net income in the quarter slipped 3% to $235.6 million or 78 cents per diluted share compared to $242.2 million or 76 cents a share a year ago.
For 2013, the company expects revenue in the range of $14.2 billion to $14.6 billion and earnings per share from continuing operations are between $3.45 and $3.65.
For the first quarter, revenues are in the range of $3.1 billion to $3.2 billion and earnings per share from continuing operations are between 35 cents and 40 cents.