Stocks soared today, with the Dow Jones industrial average once again topping the 10,000 mark, on positive economic news and bullish comments from Cisco Systems' top executive.
The Dow Jones industrial average closed up 203.82 points, or 2.08%, at 10,005.96; the S&P 500 rose 20.13 points, or 1.92%, closing at 1,066.63; and the Nasdaq composite was up 49.80 points, or 2.42%, to close at 2,105.32. All numbers are preliminary.
The Department of Labor today reported that U.S. initial jobless claims were 512,000 for the week ended Oct. 31, below the 522,000 forecast by economists. Also, the Labor Department reported non-farm productivity also increased sharply, rising 9.5% quarter-over-quarter.
Mark Vitner, Wells Fargo senior economist, said in a note to clients that the productivity numbers are a positive sign for the economy. “Stronger productivity growth is a sign that cost cutting is working and means job growth is not too far off.”
Cisco reported earnings per share of 36 cents, well above Bloomberg's consensus estimate of 30.9 cents. On a conference call, Cisco Chairman and CEO John T. Chambers said “the quarter was very strong vs. our expectations, given the challenges that are occurring in the global economy.”
Speaking on the global economy, he said: “We are starting to see solid indications of economic recovery in most geographies around the world.”