Stocks were higher for the third week in a row as the jobs report pointed to a resilient economy. Bobbi Rebell reports.
A record setting finish to the week- The Dow and S&P 500- eeking out new highs- even though stocks were relatively flat and the Nasdaq fell. For the week, all arrows were up for the major indexes. After the closing bell Friday- Berkshire Hathaway, reporting higher than expected earnings- though revenues fell short. Investors shrugged off a solid October jobs report. While employers added jobs for the ninth straight month- Non-farm payrolls came in shy of forecasts at 214,000. The unemployment rate fell to 5.8 percent- but wages rose only a tenth of a percent. Economist Cary Leahey of Decision Economics says the meager wage growth means the Fed can afford to wait longer before it decides to hike interest rates. SOUNDBITE: CARY LEAHEY, CHIEF U.S. ECONOMIST, DECISION ECONOMICS, (ENGLISH) SAYING: "Until you see wages, you're not going to see consumer spending. And until you see consumers spending, you're not really going to have a strong economy. So why not continue to wait?" Investors loaded their carts with Sears' stock after the struggling retailer said it's considering converting up to 300 stores to a real estate investment trust. Sears is trying to raise cash to tackle the holiday shopping season. Disney's stock sold off- after reporting earnings that were in-line with forecasts. Investors focused on a drop in operating income at its cable sports network, ESPN. The mall is just not the place it used to be for teens- and that's hurting turnaround efforts at Abercrombie and Fitch. It's results missed earnings forecasts- and the retailer warned sales and profits will be below estimates. Shares of the struggling teen apparel retailer slid to a two-year low. In Europe, a selloff in bank shares weighed on stocks- the major country indexes closing mostly lower.