The Dow Jones Industrial Average is Up -- But Don't Thank the Jobs Report
It was another ho-hum jobs report from the Department of Labor today, showing 113,000 jobs added to the economy last month and a slight decline in the unemployment rate to 6.6%. The report included revisions in previous months that added another 34,000 jobs and also showed a slight uptick the labor participation rate from 62.8% to 63%.
There's a little bit of everything in this report and it doesn't show any type of pickup in employment in 2014. Still, the Dow Jones Industrial Average is up 0.93% on the day and the market has almost reversed all of the losses from early in the week.
Two of the Dow's highest price stocks, Boeing and IBM , are up nicely and that's having a big impact on this price-weighted index.
Boeing keeps the momentum going
Not only was Boeing the top stock in the Dow last year, but it recorded a 7.8% increase in aircraft deliveries to a record of 648. Today came word that the momentum could continue, with Ethiopian Airlines reportedly interested in buying 10 Boeing 777X aircraft. If made at list price, which rarely happens, the order could be worth $3.8 billion to Boeing.
At this point, not even another software glitch on a Boeing 787 Dreamliner this week -- this one on an Air India plane that had to divert to Malaysia -- can gain the attention of investors. Boeing is in full expansion mode, and with airlines around the world increasing capacity it the aerospace giant should enjoy increased demand for the next decade. The stock was up 3.3% in late afternoon
IBM selling its chip business?
IBM, meanwhile, was up 1.4%. Reports surfaced this morning that the company is considering selling its traditional chip business and has hired Goldman Sachs to explore alternatives.
Last month, IBM sold its server business as part of a long-term move away from hardware and into software and services. The move to sell its chip business wouldn't be a huge surprise given this shift, though reports indicate that if a decent price or joint venture partner isn't found the company is OK with keeping it in-house.
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