Wall Street recap

Stocks post modest gains despite bad news on jobs

NEW YORK Investors undaunted by a surprisingly weak jobs report found enough positive news to nudge stocks higher yesterday.

News that the nation's unemployment rate rose above 10 percent last month for the first time in 26 years didn't derail the stock market's strong gains during the week, which lifted major indexes more than 3 percent.

The rise in joblessness to 10.2 percent in October, while bad news for the economy, reassured some investors that the Federal Reserve will have to hold interest rates low for some time. That tends to weaken demand for the dollar, which in turn gives a boost to stocks.

But the jobs report bodes poorly for consumer spending, a key driver of the economy.

"The consumer remains cautious, and if they remain cautious they don't spend," said Michael Feser, president of Zecco Trading.

The Dow Jones industrial average rose 17.46, or 0.2 percent, to 10,023.42, boosting its gain for the week to 311 points.

General Electric Co. rose 90 cents, or 6.2 percent, to $15.33 after analysts raised their ratings on the stock. It was the biggest gainer among the 30 Dow industrials.

Starbucks Corp. jumped $1.42, or 7.2 percent, to $21.12 after the coffee chain said late Thursday that its fourth-quarter profit rose and raised its fiscal 2010 earnings forecast because of an increase in customers.