Traders Cheer Jobs Report

By Paul Shread | September 01, 2006
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Traders sent stocks higher in midday trade Friday on a government report that showed solid jobs growth and tame inflation.

The Labor Department reported that the economy added 128,000 jobs in August, slightly better than expected. The unemployment rate ticked lower to 4.7%, and wage growth was a very subdued 0.1%, below 0.3% expectations. The report added to expectations that the Federal Reserve is done raising interest rates, at least for now.

Other reports showed consumer sentiment solid and manufacturing and construction slowing.

Intel edged higher on reports that it could cut 10-20% of its workforce as soon as next week.

Gateway shed 2% after rejecting an offer for its retail business.

Qualcomm rose 2% after a court dismissed antitrust claims by Broadcom .

Monster lost 3% on a downgrade, and also sold its advertising and communications business.

Intergraph soared 17% on a buyout offer.

Open Text , Wind River and Vimpel gained on their earnings reports, while Nam Tai , OmniVision and Peerless fell on their results.

In midday trade, the Nasdaq was up 9 to 2193, the S&P 500 climbed 5 to 1309, and the Dow gained 60 to 11,441. Volume was light at 803 million shares on the NYSE, and 638 million on the Nasdaq. Breadth was modestly positive, with advance-declines and up volume hovering around 55-60%.