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Bulls rule on Wall St.
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December 3, 1999: 1:48 p.m. ET
Jobs data send Dow near record high, Nasdaq and S&P into record territory
By Staff Writer Jill Bebar
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NEW YORK (CNNfn) - A market-friendly employment report that suggests inflation remains in check, easing investors’ rate hike fears, sent the Dow Jones industrial average hovering near an all-time high Friday afternoon, while the Nasdaq composite index and S&P 500 stood at record levels.
"The party continues. The report was good news for bonds, and the markets welcomed it with a big hurray. It reinforces a strong year-end rally,” said Peter Cardillo, director of research at Westfalia Investments.
Shortly before 1:30 p.m. ET, the Dow Jones industrials surged 278.92 points, or 2.5 percent, to 11,317.98. On the New York Stock Exchange, gainers beat losers 1,936 to 1,022 as trading volume reached 622 million shares.
The Nasdaq composite rallied 81.67 points, or 2.3 percent, to 3,534.45 - piercing the 3,500 mark for the first time. The S&P 500 index gained 33.45 points, or 2.3 percent, to 1,442.49. (Click here for a look at today’s CNNfn hot stocks.)
Treasury prices rose sharply following the employment report release, with the bellwether 30-year bond gaining more than three-quarters of a point in price, lowering its yield to 6.25 percent from 6.32 percent late Thursday.
In the currency markets, the dollar was slightly lower against the euro, which rebounded from the below the $1 mark for the second straight day. The dollar fell against the yen.
Tame inflation news calming
Investors cheered news that employment grew at a modest pace, suggesting that inflation remains in check. The U.S. economy added 234,000 new jobs in November, according to the Labor Department. The number was slightly above economists’ expectations of a 226,000 gain.
"The important thing for the financial markets today and the short term is that we dodged a bullet,” said Patrick Dimick, senior U.S. economist at Warburg Dillon Read. "The fundamental economic environment did not change in November.”
Analysts particularly liked the average hourly wages number, which rose 2 cents to $13.41 an hour, a smaller-than-expected increase. This component, a measure of inflation, is said to be closely watched by Federal Reserve Chairman Alan Greenspan. The next Fed monetary policy meeting is scheduled Dec. 21.
"We have continued robust growth with surprising benign inflation. We avoided a disaster,” Dimick added.
Nasdaq conquers 3,500
The employment report triggered broad-based gains. The Dow passed its previous record close of 11,326.04, set Aug. 25, before backing off.
The S&P remained above its record close of 1,424.94 set on Nov. 18.
"There is a general state of euphoria. It is the best looking rally we’ve had for quite some time,” said Ned Collins, head of trading at Daiwa Securities America.
Investors’ euphoria for the hot technology sector continued, pushing the Nasdaq further into uncharted territory above 3,500. This came just one month to the day after the index closed above the 3,000 level for the first time. The composite index posted its 17th record close in the last 24 sessions Thursday at 3,452.78.
Internets extended Thursday’s gains, especially among e-tailers. eToys (ETYS) rose 1-1/8 to 56-1/8 after a survey released late Thursday ranked the Internet retailer above Amazon.com (AMZN) as the nation’s No. 1 online toy seller. But Amazon also did well, advancing 1-1/16 to 90-1/8.
Other Internet winners included America Online (AOL), gaining 1-1/8 to 81-1/8, and Yahoo! (YHOO), adding 8-1/8 to 253-15/16.
Technology leaders fueled gains to U.S. blue chips. Microsoft (MSFT) rose 1-9/16 to 96-3/8, Hewlett Packard (HWP) gained 5-11/16 to 105-7/16 and IBM (IBM) jumped 6-7/16 to 111-11/16. Bank of America Securities initiated coverage of IBM’s stock with a "buy” rating and a $130 12-month price target, lifting that stock higher.
Financial shares upbeat
Financial shares gained ground, benefiting from the tame employment report. The sector is highly sensitive to interest rates due to the strong probability of borrowers defaulting on their loans when interest rates rise, therefore impacting corporate earnings negatively.
Chase Manhattan Corp. (CMB) rose 3-3/8 to 82-7/16 following Federal Reserve approval Thursday of the bank’s acquisition of Hambrecht & Quist Group, an investment bank.
Among the Dow components, American Express (AXP) advanced 5 to 158-7/16, Citigroup (C) jumped 2-7/8 to 56-7/8 and J.P. Morgan (JPM) added 5-1/16 to 137-9/16. 
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