Unemployment Rises... and the Dow Soars?
Welcome to the world of lowered standards, where still-high unemployment is a cause for joy. Expectations had been anchored around a net gain of only a 100,000 jobs, so when that number came in 63,000 higher than anticipated, rejoicing ensued. July's data more than doubles the April-June average, but it still pales compared to where we were earlier in the year. Feel the recovery!
With stocks up across the board, let's take a closer look at how the three major indexes are faring and check out several stocks making headlines.
|Dow Jones Industrial Average (INDEX: ^DJI)||218.42||1.70%||13,097.30|
Source: Yahoo! Finance as of 11:00 a.m. EDT.
All thirty of the Dow's components are seeing green. The biggest gainer is currently Kraft (NYS: KFT) , up 4.3% to a new 52-week high after the hedge fund Third Point bought a massive $8.7 billion stake in the company. Procter & Gamble (NYS: PG) isn't far behind, enjoying a 3.1% post-earnings pop thanks to a 45% increase in the bottom line while engaging in a $10 billion cost-cutting initiative.
We have to go off the Dow to find a big decliner, and there are few bigger today than Molycorp (NYS: MCP) , which had a quarter of its value erased after a poor earnings report that saw costs surge and production decline. Competitor Rare Element Resources (NYS: REE) is also down 5% on the news. The rare-earth minerals sector is filled with hype and speculation, so only the most risk-tolerant investors should play in the space. (And even then, it still probably isn't a great idea.)
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The article Unemployment Rises... and the Dow Soars? originally appeared on Fool.com.David Williamsonholds no position in any company mentioned.Click hereto see his holdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of Procter & Gamble. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.