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Economy Reacts to Jobs Report
Feb. 2-6, 2004
By Steven Gray
The Washington Post
Sunday, February 8, 2004; Page F12
Stocks
The Standard & Poor's 500-stock index rose 1 percent for the week, in part because of better-than-expected corporate earnings reports and favorable economic data from the federal government.
Although fourth-quarter earnings beat expectations, analysts and investors expressed disappointment that those gains were not stronger. The Nasdaq Stock Market was roiled by comments from Cisco Systems chief executive John Chambers on Tuesday that businesses are "still more cautious" than is typical for this point in an economic recovery.
Analysts said the week was saved largely by Friday's report that the nation's unemployment rate dropped to 5.6 percent in January as companies added 112,000 new jobs. Investors also responded favorably to Federal Reserve Governor Ben S. Bernanke's statement earlier in the week that he sees no "significant" rise in inflation this year or next and that the economy and hiring outlook are "promising."
For the week, the Dow Jones industrial average posted a gain of about 1 percent. However, the Nasdaq fell 0.1 percent for the week.
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