CAIRO – Egypt’s benchmark stock index fell over 2 percent Thursday, paring an earlier plunge stemming from deadly soccer riots the night before that left 74 dead and rekindled fears of fresh instability akin to the unrest that has battered the country and its economy in the year since the ouster of Hosni Mubarak.

The benchmark EGX30 index shot down about 4.6 percent within minutes of the start of trade, but rebounded as bargain hunters stepped in. The index closed down 2.2 percent, at 4,584 points.

The declines halted a rally in the market over the past week that had been fueled by newfound optimism after the peaceful passing of the one year anniversary of the Jan. 25 uprising that pushed Mubarak from power. Investors had also found cause to cheer in the convening of the country’s first post-Mubarak parliament — a legislature that was seated after Egypt’s freest elections in decades.

But the riots by football fans late Wednesday in the Mediterranean city of Port Said reignited simmering criticism of the country’s military rulers, with witnesses saying the police stood idly by while the violence broke out after the match. Parliament convened an emergency session — a move also mirrored by the Cabinet.

“There are a lot of fears, a lot of concerns, a lot of potential clashes,” said Mustafa Abdel-Aziz, senior broker with Mideast investment bank Beltone Financial’s brokerage division. “But we’re seeing the market react much better than it should” given the night’s violence.

Abdel-Aziz said that the early sell-off triggered buying interest, with investors stepping in to snap up deals.

In a market that ended 2011 over 45 percent below its level at the end of 2010, the recent gains have offered a measure of optimism as the country pushes ahead with a rocky transition to democracy that has been defined by continued protests and a growing mistrust of a military that had been hailed at the start of the uprising as heroes.

The violence in Port Said, however, reflected how fragile the gains could be at a time when Egypt’s economy is reeling from the overall effect of the uprising. The protests and associated violence have hammered the country’s chief foreign currency sources — foreign investment and tourism.

Meanwhile, Egypt’s net international reserves were down 50 percent year-on-year by the end of December, leaving wide open questions about how the country will raise new cash to bridge a widening deficit and worries over the balance of payments. It is now discussing with the International Monetary Fund a $3.2 billion loan.

The Finance Ministry on Wednesday said it would secure $1.1 billion in aid from the European Union and the World Bank. While Egyptian media have reported the loans appear to be a done deal, an EU financial official in Cairo told The Associated Press that the EU portion of the aid — known as Macro-financial Assistance — was predicated on Egypt securing the IMF loan.

An EU team was scheduled to come to Cairo on Feb. 22 for discussions, the official said, speaking on condition of anonymity because he was not authorized to discuss the issue.

The World Bank said Thursday that Egypt had asked for $1 billion in aid and that discussions would begin with the government on the request.

Separately, the Egyptian Central Bank held its benchmark interest rate unchanged, in a move London-based Capital Economics said appeared to reflect the government’s confidence in securing the IMF loan.

But Capital Economics said in a research note that while there have been indications that investors are more optimistic, the country continues to face risks from devaluation pressure on the pound and continued political instability.

For investors, the macroeconomic concerns appear to have been factored into their investment strategy, said brokers.

But what’s “not quantifiable is the extended tension between the police, the protesters and the army,” said Abdel-Aziz. “Definitely, if there’s an extended tension in this relationship, you could see another wave of selling.”

LONDON – Stocks spiked sharply higher on Friday after forecast-busting U.S. jobs figures reinforced hopes that the recovery in the world’s largest economy is gathering pace at a time when other regions, notably Europe, may be heading back into recession.

Figures from the Labor Department showed that employers in the U.S. added 243,000 jobs in January. As well as being the highest in nine months, the gain was around 100,000 more than anticipated.

The advance also contributed to a fifth straight fall in the U.S. unemployment rate. At 8.3 percent, it’s the lowest in three years.

The January jobs report was filled with other encouraging data and revisions. Hiring was widespread across many high-paying industries and pay increased, too.

“In terms of the broader outlook, one report does not a trend make but there is little doubt that U.S. economic data continues to surprise on the upside,” said Dan Greenhaus, chief global strategist at BTIG.

“We’ll have to wait until February’s report to see if this continues but for now, the risk rally is clearly on and from an economic perspective, it is most certainly warranted,” Greenhaus added.

In Europe, the FTSE 100 index of leading British shares was up 1.4 percent at 5,875 while Germany’s DAX rose 1.3 percent to 6,743. The CAC-40 in France was 0.8 percent higher at 3,405.

In the U.S., the Dow Jones industrial average was up 0.9 percent at 12,819 while the broader Standard & Poor’s 500 index rose 1 percent to 1,338.

The dollar also garnered some strength from the jobs figures as traders scaled back their expectations that the Federal Reserve would be pumping more money into the economy, evidenced also by a fall in Treasuries. The euro was trading 0.3 percent lower at $1.3097 while the dollar was 0.6 percent higher at 76.61 yen.

Andrew Wilkinson, chief economic strategist at Miller Tabak & Co., said the Fed would need more evidence before it is comfortable about the durability of the U.S. recovery, especially with the housing market still in a fragile state.

“It will take a series of repeat reports like today’s to deliver meaningful improvements to the unemployment rate before the Fed will feel confident that any improvement in employment prospects will replace the need for it to massage yields lower,” Wilkinson said.

Market sentiment has been fairly upbeat so far in 2012, partly on the back of a run of fairly strong U.S. economic data, which has convinced investors that the U.S. economy is over its soft patch from last summer.

The state of the U.S. economy contrasts with that of Europe, which appears headed for recession.

Official figures showed retail sales in the 17-nation eurozone dropped 0.4 percent during December, in contrast to expectations for an increase of the same amount.The data reinforced expectations that the eurozone contracted during the fourth quarter of the year. Eurostat is due to publish its first estimate for the quarter on Feb. 15.

The focus on the U.S. has proved a welcome diversion for some traders from monitoring the daily grind of Europe’s debt crisis, where much hinges on whether Greece can secure a deal with its private creditors, as is anticipated. A deal is expected soon, though that has been the official line for a few weeks.

Earlier in Asia, the picture was mixed.

Japan’s Nikkei 225 index fell 0.5 percent to close at 8,831.93 but Hong Kong’s Hang Seng ended marginally higher at 20,756.98.

Mainland Chinese shares extended gains fueled by news of fresh support for the farming and small-business sectors, with the benchmark Shanghai Composite Index rising 0.8 percent to 2,330.41 while the Shenzhen Composite Index added 1.5 percent to 878.29.

Oil markets were relatively subdued. Benchmark oil for March delivery was up 39 cents at $96.75 per barrel in electronic trading on the New York Mercantile Exchange.

____

Pamela Sampson in Bangkok contributed to this report.

NEW YORK (Reuters) – A surge in hiring in the world's largest economy last month drove U.S. stocks higher on Friday, with the Nasdaq hitting an 11-year high as optimism grew that the labor market is on a steady path to recovery.

The broad-based gains on solid trading volume also sent the Dow Jones industrial near a four-year high. The S&P 500 extended its 2012 advance to about 7 percent.

The U.S. economy created jobs at the fastest pace in nine months in January and the unemployment rate dropped to nearly a three-year low of 8.3 percent, the government said.

"It was just another report that shows that the economy is healing," said Wayne Kaufman, chief market analyst at John Thomas Financial in New York. "Businesses that are in motion are doing pretty well."

More than 450 stocks across all sectors hit 52-week highs, including Apple (AAPL.O), United Parcel Service (UPS.N), Yum Brands (YUM.N) and MasterCard (MA.N). The number of NYSE stocks making new 52-week highs was at its highest since July.

Kaufman said he was having a hard time identifying stocks that did not show signs of being overextended. "Seventy four percent of stocks are over their own 200-day moving average. Those are bull-market statistics," he said.

Consumer discretionary shares and other stocks tied to an expanding economy led gains. Financial shares (.GSPF) rose 2.3 percent, while industrials (.GSPI) and discretionaries (.GSPD) added 1.7 percent to 1.8 percent.

In another report signaling strength, the pace of growth in the services sector unexpectedly accelerated in January to its highest level in nearly a year.

The Dow Jones industrial average (.DJI) gained 148.08 points, or 1.17 percent, to 12,853.49. The Standard & Poor's 500 Index (.SPX) rose 18.32 points, or 1.38 percent, to 1,343.86. The Nasdaq Composite Index (.IXIC) added 46.92 points, or 1.64 percent, to 2,906.60.

Signs of an improving economy and an absence of bad news from Europe have helped Wall Street stocks rally since last year.

So far this week the S&P is up 2 percent and on track for its fifth week of gains in a row. The Dow has risen 1.5 percent and the Nasdaq, also set for a fifth straight winning week, is up 3 percent and heading for the best week since early December.

Nonfarm payrolls jumped 243,000, the Labor Department said on Friday, as factory jobs grew by the most in a year. The jobless rate fell to 8.3 percent – the lowest since February 2009 – from 8.5 percent in December.

Four stocks rose for each one that fell on both the Nasdaq and NYSE. Volume on the NYSE, Amex, and Nasdaq was 5.41 billion shares, on course to exceed the daily 200-day moving average of 7.75 billion in a sign of greater participation than on recent days.

More than half way through the earnings season, 60 percent of S&P 500 companies that have reported have beaten expectations

according to Thomson Reuters I/B/E/S data.

Gilead Sciences (GILD.O) was one of the top gainers on the S&P 500, up 11.3 percent to $54.88 a day after announcing promising early results from a trial of a hepatitis C drug. It also posted adjusted fourth-quarter profit below consensus.

(Reporting by Edward Krudy; Editing by Kenneth Barry)

NEW YORK – U.S. stocks jumped sharply in morning trading on news that the unemployment rate dropped to the lowest level in 2 years. The Dow Jones industrial average gained more than 150 points.

Before the market opened Friday, the Labor Department said companies hired 243,000 employees in January, the strongest job growth in nine months. The increase in hiring pushed the unemployment rate down to 8.3 percent.

More evidence that the economy is gaining strength followed the jobs report. The government said factory orders rose 1.1 percent in December, supported by a rebound in orders for heavy machinery. A trade group said the service industry expanded at the fastest pace since last February.

The Standard & Poor’s 500 index added 16 points, or 1.3 percent, to 1,342, less than an hour after the opening bell. The S&P 500 is on track to rise for the fifth straight week, the longest weekly winning streak since January of 2011. It’s gained 6.5 percent so far this year.

The Dow Jones industrial average jumped 158 points to 12,864. That’s a gain of 1.3 percent. Bank of America Corp. led the Dow, rising 5.6 percent.

The Nasdaq composite added 39 points, or 1.3 percent, to 2,898.

The U.S. jobs figures helped stocks and the euro rally on Friday despite further evidence that the 17-country eurozone is heading for recession. Germany’s DAX rose 1.3 percent and France’s CAC-40 gained 0.8 percent.

Among companies whose stocks are making large moves Friday:

• Weyerhaeuser gained 4 percent after reporting better quarterly earnings than analysts’ forecasts. The timber and real estate company’s earnings still sank 62 percent.

• Video game maker Take-Two Interactive Software Inc. jumped 5 percent. The company reported a 65 percent drop in quarterly profits after the market closed Thursday, but Wall Street’s analysts expected much worse.

NEW YORK (Reuters) – Stock index futures pointed to a sharply higher open on Friday after the government reported the U.S. economy created jobs at the fastest pace in nine months, infusing optimism into markets.

Nonfarm payrolls jumped by 243,000 in January, the Labor Department said, the most since April and far exceeding economists' expectations for a gain of 150,000. The unemployment rate dropped to a near three-year low of 8.3 percent.

"All I can say is 'wow,'" said Matt McCormick, a money manager at Cincinnati-based Bahl & Gaynor Inc. "This is the kind of number people wouldn't have believed until we saw it."

S&P 500 futures jumped 12 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 109 points, and Nasdaq 100 futures rose 23.25 points.

Recent data suggesting a slow but steady economic recovery have helped fuel a rally in stocks, with the S&P 500 up 5.4 percent so far this year and over 23 percent since lows in October. Many analysts had worried that a weak report could spark a pullback.

Tyson Foods Inc (TSN.N) rose 3.4 percent to $19.26 in premarket trading after quarterly earnings beat expectations.

Aon Corp (AON.N) also reported a higher-than-expected profit that narrowly beat estimates. Shares edged 0.5 percent higher to $49.60.

Earnings this season have been mixed, with fewer companies beating expectations than in recent quarters. However many technology names, including Qualcomm Inc (QCOM.O) and Apple Inc (AAPL.O), have posted blowout quarters.

In other economic news, December factory orders are seen rising 1.5 percent, while the Institute for Supply Management's January non-manufacturing index is expected to come in at 53.0, a repeat of the revised December number. Both reports are due at 10 a.m. EST.

Investors largely took a wait-and-see approach on Thursday as U.S. stocks ended little changed ahead of the payrolls report.

(Reporting by Ryan Vlastelica; editing by Jeffrey Benkoe)

Investors coasted Thursday while they waited for a critical government report on jobs. Stocks were mostly flat, a pause from their strong start this year, and bonds didn’t move much, either.

The Labor Department said the four-week average of unemployment claims fell to 375,750, the lowest since June 2008 and enough to suggest a steadily improving job market.

The more important numbers come Friday, when the government releases the number of jobs created in January and the unemployment rate. In December, the country added 200,000 jobs, and the rate was 8.5 percent.

A day ahead of the report, the Dow Jones industrial average was down 10 points at 12,707. The broader Standard & Poor’s 500 index rose one point to 1,325. The Nasdaq composite rose 10 points to 2,858.

The Dow traded in a narrow range — between a gain of 25 points and a loss of 40.

Bond traders stayed on the sidelines, too. The price of the benchmark 10-year Treasury note rose 6.2 cents for every $100 invested, and the yield inched down to 1.82 percent from 1.83 percent Wednesday.

Most industries in the stock market rose, albeit slightly. A 0.6 percent gain was all it took to make energy stocks the biggest-gaining category in the S&P.

U.S. mining stocks rose after British mining company Xstrata PLC confirmed it is in merger discussions with commodities trader Glencore International PLC. In the U.S., Newmont Mining Corp. rose 1.5 percent, Alcoa was up 2 percent, and iron ore and coal miner Cliffs Natural Resources Inc. rose 1 percent.

The deal is a signal to investors that mining companies are trading at low prices compared with the commodities they mine, said Nathan Rowader, director of investments at Forward Management in San Francisco.

Health care stocks fell almost 1 percent. Cigna dropped 4 percent after its earnings fell short of expectations as it absorbed higher corporate and medical costs. Pfizer fell 1.1 percent after recalling birth-control pills.

Retailers were a patchwork of rising and falling stock, reflecting their patchwork of January sales results. Costco and Target came in better than expected. Macy’s and Dillard’s fell short. Costco rose 2.5 percent, and Target rose 0.6 percent.

Gap rose 10 percent after revenue at its high-end Banana Republic stores rose 6 percent.

Abercrombie & Fitch Co. fell 11 percent to a one-year low after it said higher markdowns and cotton costs mean its adjusted fourth-quarter profit and revenue will be less than analysts had expected.

Last year, investors were so worried about a financial disaster in Europe that U.S. companies with strong earnings have been undervalued, said Tim Courtney, chief investment officer of Burns Advisory Group in Oklahoma City.

Now, he said, stock prices are catching up. The S&P is up 5.4 percent this year, the Dow 4 percent.

“Right now the market is going up just on the absence of bad news, on the absence of that worst-case scenario materializing,” he said.

Stocks in Europe closed nearly flat or up slightly. Britain’s FTSE 100 index rose 0.1 percent. Germany’s DAX was 0.6 percent higher, and the CAC-40 in France rose 0.3 percent.

The euro was also subdued after recent gains, trading slightly lower at $1.315.

In other corporate news:

• Green Mountain Coffee Roasters Inc., which makes Keurig cup coffee brewers, rose a hot 22 percent after it said first-quarter revenue more than doubled, margins tripled, and net income rose more than 40-fold.

• MasterCard rose almost 6 percent after adjusted profits beat Wall Street expectations.

NEW YORK (Reuters) – Stock index futures pointed to slight gains at the open on Thursday after jobless claims fell more than expected, boosting optimism about the upcoming January payrolls report.

New claims for unemployment benefits dropped by 12,000 to a seasonally adjusted 367,000, versus the forecast of 375,000.

On Friday, the government will release the January non-farm payroll report, and economists forecast 150,000 jobs were added in January, a decline from the previous month, which benefited from holiday hiring.

A report on Wednesday showed private sector job creation slowed more than expected in January, raising some caution about the sector.

"People will expect a slightly better payroll report because of this, and with the market at these lofty levels, you need to have continued good news for the market to sustain its gains," said Uri Landesman, president of the New York-based Platinum Partners.

S&P 500 futures rose 1 point and were slightly below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 7 points, and Nasdaq 100 futures put on 2 points.

A handful of U.S. retailers beat expectations for January same-store sales, but analysts are not so optimistic about department store chains and apparel chains. In premarket trading, Target Corp (TGT.N) rose 2.1 percent to $52.50 while Abercrombie & Fitch Co (ANF.N) slumped 11 percent to $41.52.

On Wednesday, equities rallied almost 1 percent on upbeat global manufacturing data and optimism Greece was closing in on a deal with private creditors.

Materials and other cyclical groups could gain on hopes that China, the world's largest consumer of metals, would further ease monetary policy to stimulate its economy.

Facebook could raise as much as $10 billion in the biggest-ever Internet initial public offering, according to a filing Wednesday. In 2011, Facebook said net income rose 65 percent to $1 billion on revenue of $3.71 billion.

Shares of JPMorgan Chase & Co (JPM.N) could draw attention after the bank group surprised Wall Street by winning a leading role in the IPO.

Drugmaker Merck & Co Inc (MRK.N) rose 1.2 percent to $39.10 in premarket trading after the Dow component reported fourth-quarter sales missed expectations and forecast flat full-year results.

Dow Chemical Co (DOW.N) posted weaker-than-expected profit and revenue, sending shares down 2.3 percent to $33.15 before the bell.

Green Mountain Coffee Roasters Inc (GMCR.O) surged 21.5 percent to $65.15 a day after its first-quarter earnings far exceeded expectations.

"Earnings have been decent relative to history, but compared with last year they're disappointing," said Rick Fier, vice president at Conifer Securities in New York, which has about $12 billion in assets under administration. "We're seeing a slowing in revenue growth."

In other economic data due Thursday, the Institute for Supply Management-New York releases the January index of regional business activity at 9:45 a.m. EST (1445 GMT) In December, the index read 534.0.

Investors will also scour testimony from U.S. Federal Reserve Chairman Ben Bernanke, who will speak on the state of the economy before the House Budget Committee at 10 a.m. EST (1500 GMT).

U.S. stocks extended January's rally on Wednesday, but some strategists see the benchmark S&P 500 approaching a short-term top after gaining 4.4 percent last month.

(Reporting by Ryan Vlastelica; editing by Jeffrey Benkoe)

NEW YORK (Reuters) – Stock index futures held gains on Tuesday after data showed U.S. home prices fell more than expected in November.

Futures were trading higher on signs of progress in dealing with Europe's long-running sovereign debt crisis.

S&P 500 futures rose 5.8 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration of the contract. Dow Jones industrial average futures added 46 points and Nasdaq 100 futures gained 11 points.

(Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)

NEW YORK (Reuters) – Stocks slipped on Friday as data showed the U.S. economy grew less than expected in the fourth quarter, while some disappointing earnings added pressure to the market.

Government data showed U.S. gross domestic product expanded at its fastest pace in 1-1/2 years in the fourth quarter of 2011 but fell shy of expectations. A strong rebuilding of inventories and weak spending by businesses pointed to slower growth early this year, denting recent optimism about an improving economy.

But losses were curbed as Federal Reserve statements this week and economic data kept investors alert for the possibility of another round of monetary stimulus known as quantitative easing, or QE3.

"Out of what the Fed said, you can expect some negative numbers because the Fed obviously saw what the GDP numbers are and they anticipate a slowdown," said Sean Kraus, chief investment officer at CitizensTrust in Pasadena, California.

If the Fed does resort to QE3 to stimulate growth, investors "don't want to be caught flat-footed and be out of risky assets," Kraus said.

Chevron Corp (CVX.N) fell 3.1 percent to $103.26 and was the biggest drag on the Dow after the No. 2 U.S. oil company posted lower earnings, missing Wall Street forecasts. The NYSEArca oil index (.XOI) lost 0.7 percent.

The Dow Jones industrial average (.DJI) dropped 60.06 points, or 0.47 percent, to 12,674.57. The Standard & Poor's 500 Index (.SPX) dipped 2.69 points, or 0.20 percent, to 1,315.74. The Nasdaq Composite Index (.IXIC) gained 7.46 points, or 0.27 percent, to 2,812.74.

Procter & Gamble Co (PG.N) dipped 0.7 percent to $64.35 after said this year's profit would come in lower than previously expected due to the strong dollar.

Ford Motor Co (F.N) shares fell 1.7 percent to $12.52 after the carmaker reported a lower-than-expected fourth-quarter profit on higher commodity costs and losses in Europe and Asia.

Network equipment makers Juniper Networks Inc (JNPR.N) and Riverbed Technologies Inc (RVBD.O) gave first-quarter outlooks after the close Thursday that were below expectations. Juniper fell 3.9 percent to $21.50 while Riverbed plunged 22.4 percent to $23.22.

According to Thomson Reuters data, 58.7 percent of 184 S&P 500 companies reporting earnings through Friday have topped analysts' estimates, below the beat rate of about 70 percent seen at this stage of earnings season in recent quarters.

Utilities moved lower after results from American Electric Power (AEP.N), off 2.9 percent to $40.07, and Dominion Resources (D.N), down 0.8 percent to $50.44. The S&P utilities index (.GSPU) fell 1.1 percent.

Eastman Chemical Co (EMN.N) offered to buy specialty chemical maker Solutia Inc (SOA.N) for about $3.38 billion in cash and stock to extend its reach in emerging markets, particularly the Asia-Pacific region. Solutia shares rose 41 percent to $27.59.

Euro zone finance officials voiced optimism a deal to avert a disorderly Greek default was imminent. Renewed concern about the crisis has troubled markets this week.

(Reporting By Chuck Mikolajczak; Editing by Kenneth Barry)

NEW YORK – Stocks were mostly lower Friday after the government reported the U.S. economy grew at a slower pace than economists had expected in the fourth quarter.

The Dow Jones industrial average fell 59 points, or 0.5 percent, to 12,676 in the first hour of trading. The S&P 500 index fell 2 points to 1,317. The Nasdaq composite edged up 6 to 2,811.

The Commerce Department said the economy grew at a modest 2.8 percent in the final three months of last year. Economists had expected 3 percent growth.

Among stocks making big moves, Chevron Corp. fell 3 percent, the most of the 30 stocks in the Dow average, after the energy company’s fourth-quarter revenue and earnings per share came in well below what analysts were expecting. Oil and natural gas production declined in the quarter.

Ford Motor Co. fell 4.5 percent after reporting disappointing fourth quarter earnings due weak sales in Europe. The company said its results were also hurt by trouble at parts suppliers in Thailand due to flooding there.

Starbucks Corp. fell 2.7 percent after reporting late Thursday that that full year results were likely to come in less than expectations. Procter & Gamble Co., which makes Tide, Crest and other consumer products, fell less than 1 percent after cutting its earnings outlook.

Legg Mason fell 6 percent after the investment management company’s earnings fell in half as clients pulled money out of the firm. Legg Mason’s earnings of 20 cents per share were well below the 25 cents per share that analysts were expecting, according to FactSet.