Stocks gain after US unemployment rate drops

AP News
Posted: Oct 05, 2012 11:51 AM
Stocks gain after US unemployment rate drops

Stocks are rising on Wall Street after a government report showed that more Americans are going back to work.

The unemployment rate declined to 7.8 percent in September, the Labor Department reported Friday. It was first time the rate has gone below 8 percent in nearly four years. The drop from 8.1 percent the month before was bigger than economists were expecting.

The Dow Jones industrial average was up 48 points at 13,624 shortly before noon. The Standard & Poor's 500 index rose five points to 1,466. The Nasdaq composite was up four points at 3,154.

The yield on the 10-year U.S. Treasury note rose to 1.72 percent from 1.68 percent as investors shifted money from bonds into stocks.