Dow Jones at 5-year high supported by US Job and manufacturing sector data

The main US share index, Dow Jones closed at a 5-year high on Friday supported by the better US Job and manufacturing sector data. Dow Jones jumped 1.1% to cross 14,000 mark for the first time since October 2007.

This was supported by the job data revision for the past year. The Labor Department said that the economy has added 127,000 more jobs than first thought for the month of November and December. For January, the US economy added 157,000 new jobs which are slightly lower than forecast. Though the unemployment rate increased marginally by 0.1% to 7.9% in January, the better than expected job data for last year boosted the confidence.

The confidence was also boosted by the better than expected manufacturing sector data as well. The Markit compiled latest purchasing managers' index jumped to 55.8 in January compared to 54 in December. A reading higher than 50 indicates growth. Also the Institute for Supply Management said its index of national factory activity jumped to 53.1 in January which is the highest level since April 2012 and much higher compared to 50.2 in December. Both these ratings suggest strong growth in the manufacturing sector.