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Markets & Stocks
Stocks and jobs for all
March 5, 1999: 11:51 a.m. ET

Strong, non-inflationary February jobs report sends stock markets soaring
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NEW YORK (CNNfn) - News that the economy is still producing lots of jobs, but no inflation, gave work to Wall Street's bulls Friday, sending the stock market into a powerful, broad-based rally.
     Shortly before 11:30 a.m. ET the Dow Jones industrial average climbed 199.67 points, or 2.1 percent, to 9,667.07, adding to Thursday's more than 2 percent gain and trading in record territory. Advances trounced declines 2,001 to 736 as trading volume on the New York Stock Exchange reached 340 million shares.
     The Nasdaq Composite rallied 31.81 points, or 1.4 percent, to 2,324.70, in unusually light volume following a temporary failure in the exchange's electronic trading systems. The S&P 500 index gained 22.16 points, or 1.8 percent, to 1,268.80. (Click here for a look at today's CNNfn market movers)
     Bonds soared on the jobs news as investors found relief for their interest rate fears in news wages grew a modest 0.1 percent in February, even as the economy churned out 275,000 non-farm jobs in the month. The bellwether 30-year Treasury bond surged 1-20/32 points in price, its biggest one-day gain since Oct. 5, driving the yield down to 5.58 percent.
     The dollar, however, eased from its Thursday levels against the yen and the euro, slightly hurt by the jobs data, which quashed any hopes currency investors might have had that interest rates would rise.
    
A broad-based rally

     Bulls on Wall Street found encouragement in the jobs data and started loading up on a broad array of stocks the moment the market opened.
     Technology, transportation, financial, consumer, drug, oil and utilities stocks all took off as investors saw only good news ahead -- stable interest rates, no inflation and an economy whose growth rate is the envy of the world.
     Among the leading sectors, tech stocks pushed higher, once again gaining favor despite recent fears of earnings growth in the sector.
     Helping prod the bulls, news that chip giant Intel (INTC) has agreed to buy Level One Communications (LEVL), a maker of high-speed chips with built-in communications features, in a $2.2 billion stock swap, sent shares of Level One soaring 18-5/8 to 45-3/4, a gain of more than 68 percent. Level One was the most active stock and the leading net gainer on the Nasdaq. Intel's stock climbed 2-1/4 to 115-5/8.
     Other major technology names also shot up, with Dow member IBM (IBM) rising 4-11/16 to 175-11/16 and its new partner Dell Computer (DELL) jumping 1-7/8 to 83-3/4. Dell's stock splits 2-for-1 at the close of trading Friday.
     Microsoft (MSFT), which Thursday unveiled its latest aggressive plans to expand in the world of e-commerce, rose 1-9/16 to 153-13/16.
     Hewlett Packard (HWP) climbed 7/16 to 67-7/8, Cisco Systems (CSCO) advanced 1-9/16 to 99-13/16, Gateway (GTW) gained 5/8 to 67-15/16 and Compaq (CPQ) traded 5/8 higher at 33-15/16.
    
Banks bank on jobs data

     Meanwhile financial stocks, always sensitive to interest rate movements, added on to a strong rally Thursday as investors breathed a sigh of relief that the cost of money is about to remain the same.
     Shares of American Express (AXP) the Dow component that Thursday soared on the back of a "buy" rating from Salomon Smith Barney, advanced 3-7/16 to 116-7/16.
     The Dow's two other financial components also surged, with Citigroup (C) rising 1-9/16 to 61-7/8 and J.P. Morgan (JPM) gaining 1-1/2 to 114-7/16.
     Elsewhere in the market, oil stocks firmed up, adding on to solid gains from Thursday. Chevron (CHV) climbed 1-3/4 to 81-1/16 and fellow Dow 30 member Exxon (XON) climbed 1-13/16 to 69-5/8.
     In the day's corporate news, shares of Wal-Mart (WMT) rallied 3-7/16 to 92-13/16 after late Thursday the retailer announced a 2-for-1 stock split, a 29-percent hike in its quarterly dividend and an expansion of its stock repurchase program.
     News that Century Communications (CTYA) is merging with Adelphia Communications (ADLAC) sent Century's stock soaring 2-11/16 to 38-1/16. Adelphia's shares sank 4-3/8 to 52-3/4.
    
Left out of the party

     Also taking exception to the overall market rally, shares of electronics retailer CompUSA (CPU) shed 2-1/16, or more than 25 percent, to 6-1/16 after late Thursday the company said it would post surprise losses in its fiscal third and fourth quarters.
     And IDX Systems (IDXC), a provider of health-care information solutions, tumbled 10-5/8, or almost 41 percent, to 15-3/8 after it too warned earnings for the first quarter would fall sharply below market expectations. Back to top
     -- by staff writer Malina Poshtova Zang

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.