Unemployment figures drive North American markets

(November 5 – 17:30 ET) – North American markets were active today after jobs reports in the U.S. and Canada showed decreasing unemployment levels.

U.S. unemployment dropped to 4.1%, it’s lowest rate in 30 years. But wage pressure, a key inflation indicator, was only at 0.1%. Last month it was up 0.5%, and markets reacted positively to the slow down.

The 30-year U.S. treasury yield dropped to its lowest level in a month and half based on selling speculation that the Federal Reserve’s Open market committee won’t be raising interest rates.

The Dow jumped 64.48 to 10,704.48. The S&P gained 7.50 to 1370.23. Interest rate sensitive financial stocks performed especially well. American Express traded a lot, gaining US$3 7/16 to $149 3/4. That alone added 17 points to the Dow. J.P Morgan took on $2 1/4 to $135 3/4 as well.

But the big story again was the technology sector. The Nasdaq surged 42.29 to 3102.24. Qualcomm, the U.S. wireless communications company, swelled by US$30 7/16 to $294 3/8. A number of analysts predict ednew products will boost the company’s earnings. Motorola jumped US$7 3/4 to $114 1/4 after it announced it will be out-sourcing some of its more expensive chip-making duties.

Two IPOs soared on Nasdaq. Cobalt Networks, a specialty computer server manufacture, went through the roof, gaining US$106 1/8 to $128 1/8 on its second day on the market Webvan, an online grocer, also picked up US$9 7/8 to $24 7/8.

In Canada, the TSE added 36.1 to close the week at 7,297.60. Ten of the 14 sub-indices finished up, led by the industrials and communications and media. JDS Uniphase gained C$8 to $288.70. Biovial International took on C$6.50, to close at $98.50. Rogers Communications added C$3 to $33.50, and Rogers Cantel also jumped by $2.45 to $46.60.

The financials did well in Canada too. Internet brokerage TD Waterhouse jumped by C$3.70 to $22.35., and Fairfax Financial Holdings put on $16.95 to $206.95.

The ME inched up by 8.23 to 3,808.92. The ASE gained 18.63 to 2,902.55 and the VSE was up a point.