Dow Jones Industrial Average Hits 2011 High On Good Numbers - The Dow Jones industrial average exceeded 12,400 Friday morning, a new 2011 high during early trading. This came after numbers released showed the jobless rate at the lowest level in two years.
The Dow’s 100-point gain early in the day seemed unwarranted because the employment report was just slightly better than expected, said Jack Ablin, chief investment officer at Harris Private Bank in Chicago. “There’s a relief that the job gains were continuing, but it’s not a huge surprise,” he said. “It’s worth maybe 40 points on the Dow.”The Labor Department said the unemployment rate fell to 8.8 percent, the lowest since March 2009, as companies added workers at the fastest two-month pace since before the recession began. Approximately 216,000 new jobs were created last month, offsetting layoffs by local governments. Economists had expected the unemployment rate to remain at 8.9 percent.
“We are clearly seeing a breakout in the labor market,” said Paul Zemsky, the head of asset allocation at ING Investment Management. “The jobless recovery is ending and we are moving into a job expansion stage of the economy.”
The Dow has already risen 6.9 percent this year. That’s the best start since 1999. READ
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