US stocks open flat after mixed jobs data

January 08, 2011 | 08:00

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US stocks opened with small gains on Friday as traders weighed data showing weak US job creation but a sharp drop in December unemployment.

The Dow Jones Industrial Average rose 3.11 points (0.03 per cent) in opening trades, while the S&P 500 index, a broader measure of the market, was up 1.81 points (0.14 per cent) at 1,275.62 points.

The tech-rich Nasdaq gained 2.71 points (0.10 per cent) at 2,713.89.

Shortly before trade opened, the Labor Department released its closely watched monthly unemployment report which investors hoped would confirm recent data showing the US economic recovery was gaining speed.

But the data offered a mixed picture.

The unemployment rate fell sharply to 9.4 per cent in December from 9.8 the previous month, its lowest level since May 2009.

But at the same time, the economy created 103,000 jobs, much fewer than the 150,000 forecast by analysts.

"This is a cold(ish) shower after the excitement generated by (private payrolls firm) ADP," which reported earlier this week a stellar rise in private-sector hiring in December, said Ian Shepherdson of High Frequency Economics.

"The underlying trend is accelerating, but progress is quite slow," he said in a client note.

AFP

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