Surprisingly good economic news sent stocks flying on Friday. The three major stock indices rocketed skyward immediately after the opening bell. Miami-based corporations performed just as well, although Ryder System (R) sacrificed its early gain because Thursday’s disappointing earnings report continued to cast its shadow.
The big event of the day was the release of the monthly non-farm payrolls report by Bureau of Labor Statistics:
Total nonfarm payroll employment rose by 243,000 in January, and the unemployment rate decreased to 8.3 percent, the U.S. Bureau of Labor Statistics reported today. Job growth was widespread in the private sector, with large employment gains in professional and business services, leisure and hospitality, and manufacturing. Government employment changed little over the month.
The second shock of the day came from the Institute for Supply Management. The January 2012 Non-Manufacturing ISM Report on Business brought another surprise to the upside. Bloomberg News provided this report:
The Institute for Supply Management’s non-manufacturing index rose more than forecast, to 56.8 from 53 in December, the Tempe, Arizona-based group’s data showed today. Readings above 50 signal expansion and the median forecast of 77 economists surveyed by Bloomberg News was 53.2.
The Dow Jones Industrial Average jumped by 156 points on Friday, to close at 12,862 for a gain of 1.23 percent. The S&P 500 did better, surging by 1.46 percent to finish at 1,344. The NASDAQ Composite advanced by 1.61 percent to end the day at 2,905.
With the exception of Ryder System (R) Miami-based corporations had a great day on Friday. Lennar (LEN) led the group with a huge gain of 7.36% to close at 23.34. Royal Caribbean (RCL) was next, jumping by 6.62% to finish at 30.59. Carnival Cruise Lines (CCL) advanced by 2.70% to close at 32.00. Ryder System (R) was the only member of the group to finish in the red, with a loss of 75 basis points (0.75%) to end the day at 52.62.
The following companies will be playing “beat the number” on Monday, with the release of their quarterly earnings reports: Advent Software (ADVS), American Capital Agency (AGNC), Amylin Pharmaceuticals (AMLN), Anadarko Petroleum (APC), Bankrate (RATE), Black Diamond (BDE), Cambrex (CBM), CNA Financial (CNA), Coinstar (CSTR), Comstock Resources (CRK), Dun and Bradstreet (DNB), Hasbro (HAS), HCA Holdings (HCA), Humana (HUM), Idex (IEX), Illumina Inc (ILMN), Kenexa (KNXA), KKR Financial Holdings (KFN), Lazard Ltd (LAZ), Leggett And Platt (LEG), Loews (L), Luminex (LMNX), National Retail Properties (NNN), NCR Corp (NCR), Nielsen Holdings (NLSN), Owens And Minor (OMI), Pioneer Natural Resources (PXD), PMC Sierra (PMCS), ServiceSource International (SREV), Standard Pacific Corp (SPF), Sysco (SYY), Torchmark (TMK), Towers Watson (TW), Unum Group (UNM), United States Gypsum (USG), Veeco Instruments (VECO), Viasat (VSAT), Wabash National (WNC), Wausau Paper (WPP) and Yum! Brands (YUM). Good luck!
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