Wall Street buoyed by labour market figures

Dow Jones: 11,153.98 (+143.08) Nasdaq:2,480.76 (–10.82) SP 500: 1,160.40 (+9.34)

US STOCKS rose in a volatile session yesterday as stronger than expected economic data and German approval of a beefed-up euro zone crisis fund relieved two of the worst fears hanging over the market.

The Nasdaq was knocked lower by a sell-off in US-listed Chinese stocks on news of a probe into accounting practices and profit taking in Apple shares after a huge gain during the quarter.

The US Labor Department said initial applications for unemployment benefits fell to a five-month low last week.

Europe again averted disaster in its debt crisis when German deputies rallied behind Chancellor Angela Merkel to approve a stronger euro zone bailout fund yesterday.

“The vote in Germany is obviously positive news and is exactly what is needed to give the region the go-ahead to recapitalize their banks,” said Deirdre Dennehy, portfolio manager at the Rockland, Massachusetts-based Rockland Trust.

The Dow Jones industrial average gained 143.08 points, or 1.30 per cent, to 11,153.98.

The Standard Poor’s 500 Index rose 9.34 points, or 0.81 per cent, to 1,160.40.

The Nasdaq Composite Index dropped 10.82 points, or 0.43 per cent, to 2,480.76.

Chinese Internet search engine Baidu, was down 9.2 per cent at $110.29, and other US-listed Chinese companies were among the biggest losers after a securities regulator told Reuters the US Justice Department was investigating accounting irregularities at Chinese companies listed on US exchanges.

Technology names pressured the Nasdaq, with Amazon.com off 3.2 per cent at $222.44 following a sharp rally in Wednesday’s session.

Advanced Micro Devices sank 13.7 per cent to $5.31 after cutting its third-quarter revenue outlook, prompting many analysts to downgrade their views on the stock.

Apple shares fell 1.6 per cent to $390.57 on profit taking after gaining more than 16 per cent during the quarter.

Other big-cap Internet names were also down. Netflix sank 11 per cent to $113.19 while Yahoo lost 5.4 per cent to $13.42.

Market volatility is likely to remain high as traders react to European headlines. – (Reuters)