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NEW YORK - UNITED States stocks powered higher on Friday as a blockbuster Microsoft bid for Yahoo helped Wall Street shake off a shock report showing the first decline in jobs for the US economy in over four years.
The Dow Jones Industrial Average jumped 92.83 points, or 0.73 per cent, to close at 12,743.19, capping a strong week for the market.
The tech-heavy Nasdaq composite added 23.50 points, or 0.98 per cent, to 2,413.36 while the Standard & Poor's 500 index rose 16.87 points, or 1.22 per cent, to finish at 1,395.42.
Investors were hit with a deluge of news including data showing a loss of 17,000 jobs in January, the first decline in jobs since August 2003 for the US economy, and a blockbuster US$44.6-billion (S$63 billion) bid by Microsoft for Yahoo that would shake up the tech space.
Although the economic reports highlighted concerns about recession, the news of a potentially big merger helped set a positive tone.
'The deal is really great news for the market and in particular the technology sector,' said Ms Kimberly DuBord at Briefing.com.
Ms DuBord said Microsoft's bid highlighted the fact that stocks have been beaten down and may represent good value. Yahoo had sunk to a four-year low earlier this week.
'Microsoft, with a cash balance to rival some banks ... essentially is making a significant value deal for Yahoo,' Ms DuBord added.
The takeover bid highlighted the notion that companies are hunting for bargains again and possibly looking past the economic turmoil.
'Investors love mergers and acquisitions,' said Mr Al Goldman, market strategist at AG Edwards.
European stock markets joined the rally, extending gains as the takeover bid was announced. The London FTSE 100 index climbed 2.54 per cent to 6,029.20 while in Paris the CAC 40 rose 2.22 per cent to 4,978.06. The Frankfurt Dax advanced 1.71 per cent to reach 6,968.67. -- AFP
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