Dow now at 10,991, up 42 points.
NEW YORK (AP) — Stocks rose Friday after another weak report on
unemployment added to expectations that the Federal Reserve will
step in to prop up the economy.
The Dow Jones industrial average climbed above 11,000 Friday for
the first time since early May. It rose 71 points in afternoon
trading.
High unemployment remains a major hurdle as economic growth
continues to be sluggish. The Labor Department’s report, considered
the most important piece of news on the economic calendar, did
little to alter the view that the economy remains weak.
While job creation remains scarce, however, there could be a silver
lining. Expectations are growing that the Federal Reserve will try
to stimulate the economy by stepping up its purchases of government
bonds. The gloomy jobs report could give the Fed more incentive to
act.
Jason Pride, director of investment strategy at wealth management
firm Glenmede, said “by not being stronger, (the jobs report) gives
them the window of opportunity to take action.”
Anticipation of the Fed making a move has driven bond yields and
the dollar sharply lower in recent days. Bond yields fell again
Friday after the jobs report was released. The yield on the
two-year note hit a new record low, but the dollar crept slightly
higher.
