By Roland Jones

Wall Street reporter

MSNBC

Updated: 5:06 p.m. ET March 4, 2005



NEW YORK - A surprisingly strong report on U.S. job creation ignited a
robust rally on Wall Street Friday, lifting major stock indexes to their
highest closing levels in nearly four years.



Wall Street was elated following the release of the February employment
report, which showed 262,000 jobs were created last month, more than the
225,000 economists expected and the best showing in four months. The data,
which showed jobs were created throughout the economy from retail to
manufacturing, boosted investors' confidence about growth and corporate
earnings.

"The economic numbers were better than expected, and that set the tone for
the [trading] day," said Dan McMahon, head of listed trading at CIBC World
Markets. He said stocks also were boosted by a modest decline in the price
of crude oil, which hit a four-month high Thursday. "[The jobs report] is
great news for stock investors," said Mark Zandi, chief economist at
Economy.com, a private research group.

The lack of growth in wages means the Federal Reserve will not feel
compelled to raise interest rates at an accelerated pace, he said. "There's
not enough job growth to cause wage inflation and put pressure on company
profits," he told CNBC.

High interest rates tend to weigh on stock prices because they increase the
cost of borrowing for companies.

"[The jobs report] is great news for stock investors," said Mark Zandi,
chief economist at Economy.com, a private research group.

The lack of growth in wages means the Federal Reserve will not feel
compelled to raise interest rates at an accelerated pace, he said. "There's
not enough job growth to cause wage inflation and put pressure on company
profits," he told CNBC.

High interest rates tend to weigh on stock prices because they increase the
cost of borrowing for companies.

The Dow rose 107.52 points, or 1 percent, to close just shy of 11,000, its
highest level since June 12, 2001. The blue-chip index was boosted by
manufacturers like DuPont, Caterpillar and 3M, and interest-rate sensitive
stocks like Citigroup and J.P. Morgan Chase.

Broader indexes also rallied. The S&P 500 finished up 11.65 points, or 1
percent, closing at its best level since July 3, 2001. The technology-rich
Nasdaq composite index climbed 12.21 points, or 0.6 percent.

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