Stocks Climb on Microsoft News

Dismal labor report can't keep Dow down
By Jonas Oransky,  Newser Staff
Posted Feb 1, 2008 3:29 PM CST
A wet, gloomy morning greeted traders at the New York Stock Exchange, Friday, Feb. 1, 2008. Stocks gave up an early rally after a weak construction spending report and a warning from Moody's that it will...   (Associated Press)
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(Newser) – Microsoft’s offer to buy Yahoo outweighed a dismal jobs report today as the Dow ended up 92.83 at 12,743.19 after a seesaw session. Hopes for a new M&A wave bumped up against fears of broad economic slowdown. “This is a trader’s market, because traders love volatility,” said one trader. The Nasdaq gained 23.50 to 2,413.36 and the S&P 500 16.87 to 1,395.42.

Analysts told the Wall Street Journal the first monthly labor slowdown since 2003 wasn’t a drag on stocks because investors have been factoring in a recession for several weeks. "Microsoft's bid for Yahoo offers investors hope that value can now be found in the US stock market," an analyst told MarketWatch.