Buying spree on Wall Street

Stocks surged higher on Wall Street yesterday as investors overcame their initial disappointment with the January employment report.

The US Labour Department reported the unemployment rate fell 0.1% to 5.6% last month to its lowest level since October 2001.

The economy created 112,000 new jobs in January, and while analysts and economists had been expecting a higher number, the report was enough to motivate buyers who had been dormant for more than two weeks.

The Dow Jones industrial average surged 97.48, or 0.9%, to finish at 10,593.03, ending the week up 104.96, or 1%, after two weeks of selling.

Broader stock indicators also finished higher.

The Nasdaq composite index jumped 44.45, or 2.2%, to 2,064.01, although it fell 0.1% for the week due to a 52-point loss Wednesday, giving the tech-dominated index its third straight losing week.

The Standard & Poor's 500 index rose 14.17, or 1.3%, at 1,142.76, and finished the week 1% higher after being down the previous week.

Advancing issues outnumbered decliners by more than 4 to 1 on the New York Stock Exchange, where volume came to 1.45 billion shares, compared with 1.58 billion in Thursday's session.

The Russell 2000 index of smaller companies was up 14.46, or 2.5%, at 584.00.