The Dow Jones Industrial Average is Up -- But Don't Thank the Jobs Report

It was another ho-hum jobs report from the Department of Labor today, showing 113,000 jobs added to the economy last month and a slight decline in the unemployment rate to 6.6%. The report included revisions in previous months that added another 34,000 jobs and also showed a slight uptick the labor participation rate from 62.8% to 63%.  

There's a little bit of everything in this report and it doesn't show any type of pickup in employment in 2014. Still, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is up 0.93% on the day and the market has almost reversed all of the losses from early in the week.  

Two of the Dow's highest price stocks, Boeing (NYSE: BA  ) and IBM (NYSE: IBM  ) , are up nicely and that's having a big impact on this price-weighted index.

Boeing keeps the momentum going
Not only was Boeing the top stock in the Dow last year, but it recorded a 7.8% increase in aircraft deliveries to a record of 648. Today came word that the momentum could continue, with Ethiopian Airlines reportedly interested in buying 10 Boeing 777X aircraft. If made at list price, which rarely happens, the order could be worth $3.8 billion to Boeing.  

At this point, not even another software glitch on a Boeing 787 Dreamliner this week -- this one on an Air India plane that had to divert to Malaysia -- can gain the attention of investors. Boeing is in full expansion mode, and with airlines around the world increasing capacity it the aerospace giant should enjoy increased demand for the next decade. The stock was up 3.3% in late afternoon  

IBM selling its chip business?
IBM, meanwhile, was up 1.4%. Reports surfaced this morning that the company is considering selling its traditional chip business and has hired Goldman Sachs to explore alternatives.  

Last month, IBM sold its server business as part of a long-term move away from hardware and into software and services. The move to sell its chip business wouldn't be a huge surprise given this shift, though reports indicate that if a decent price or joint venture partner isn't found the company is OK with keeping it in-house.

How to look at the market on days like this
On days like this isn't important to keep an eye on investments for long-term trends because the market can react irrationally to short-term data points. Our CEO, legendary investor Tom Gardner, always has an eye on the long term and he's permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2829284, ~/Articles/ArticleHandler.aspx, 4/21/2014 12:44:03 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement