(By Salman - iStockAnalyst Writer)US stocks finished higher on Friday as investors shrugged off disappointing government data showing the unemployment rate hit 10.2 percent in October - the highest in 26-1/2 years.
The Dow Jones Industrial Average rose 17.46 points or 0.17% to finish at 10,023.42. The S&P 500 increased 2.67 points or 0.25% to end at 1,069.30. The Nasdaq Composite gained 7.12 points or 0.34% to 2,112.44.
Shares of diversified US firm General Electric Co. (NYSE:
GE) jumped 90 cents or 6.24% to $15.33 after analysts from Sanford C. Bernstein & Co. and Oppenheimer & Co. upped their ratings and target prices for the stock, citing greater stabilization at finance unit.
Travelers Companies Inc. (NYSE:
TRV) rose $1.26 or 2.49% to $51.90.
Shares of home improvement retailers Home Depot Inc. (NYSE:
HD) climbed 45 cents or 1.76% to $26.08.
On the downside, Merck & Co. (NYSE:
MRK) lost 59 cents or 1.89% to $30.67.
AIG (NYSE:
AIG) posted its second straight profit in the third quarter, topping Wall Street estimates. Early on Friday, the company reported that it swung to a net income of $455 million, or 68 cents per share, compared to a loss of $24.5 billion or $181.02 per share, during the same quarter last year. Results included a one-time net charge of $1.5 billion for restructuring and hedging. On an adjusted basis, the company earned $1.9 billion in the quarter, or $2.85 per share. Revenue surged 189% to $26 billion. Shares of the insurers plunged $3.80 or9.67% to $35.48.
Late on Thursday, Starbucks Corp. (NASDAQ:
SBUX) said that its fourth quarter net income climbed to $150 million, or 20 cents a share, from $5.4 million, or 1 cent, in the comparable quarter last year. Revenue dropped to $2.42 billion. Starbucks shares rallied $1.42 or 7.21% to $21.12.
Shares of Amazon.com (NASDAQ:
AMZN) surged $5.59 or 4.63% to $126.20 after Bernstein upgraded it to "outperform" from "market perform," and also lifted its 12-month target price on the stock,
Meanwhile, mortgage finance firm Fannie Mae (NYSE:
FNM) has asked for another $15 billion in federal aid after posting loss in the latest quarter. Fannie Mae reported a net loss of $18.9 billion in the third quarter ended Sept. 30, compared with a $14.8-billion loss in the second quarter and a $29.4-billion loss in the third quarter last year.
On the economic front, a release by Department of Labor on Friday showed that U.S. employers slashed 192,000 net jobs in October. Economists were expecting a drop of 175,000 in non-farm payrolls. Unemployment rate increased to 10.2% in October. Economists expected jobless rate to rise to 9.9%.
According to the Federal Reserve, consumer credit fell a seasonally adjusted $14.8 billion, or 7.2%, to $2.456 trillion in September. Economists projected a decline in total borrowing of $10 billion in September.
European stocks settled higher. The UK FTSE gained 17.08 points or 0.33% to 5,142.72. The German DAX increased 0.13% while French CAC slipped 0.04%.
Asian stocks finished up. The Nikkei 225 rose 71.91 points or 0.74% to 9,789.35. The Hang Seng index of Hong Kong jumped 350.64 points or 1.63% to 21,829.72.
NYMEX crude oil for December delivery declined $2.79 or 3.5% to settle at $76.83 a barrel.
Disclosure: Author doesn't own any of the stocks discussed here.
