This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Sector Snap: Staffing Companies Rise On ISM Report

LOS ANGELES (AP) â¿¿ Shares of staffing companies surged Tuesday after a report showed the U.S. service sector expanded in September for a ninth straight month.

The Institute for Supply Management reported its service-sector index increased last month to 53.2 from 51.5 in August.

The rate hit a high point of 55.4 in March, stayed there in April and May, and has fluctuated since. Readings above 50 signal growth.

The service sector is the nation's predominant employer. While the index increase was modest, it bodes well for staffing firms such as Kelly Services Inc. and SFN Group Inc., which could see a bump in business as companies look to add new employees.

The news sent shares of Kelly Services up 74 cents, or 6.3 percent, to $12.52 in afternoon trading, while SFN shares added 37 cents, or 6.1 percent, to $6.49.

Shares in Robert Half International Inc. rose 89 cents, or 3.5 percent, to $26.27. Barrett Business Services Inc.'s shares added 76 cents, or 5.2 percent, to $15.53.

And Kforce Inc. shares rose 72 cents, or 5.5 percent, to $13.89.

Weak consumer spending has kept the service industry, which employs about 83 percent of workers in the private sector, from gaining momentum after the recession ended.

Economists say Tuesday's reading was better than expected â¿¿ but not enough to change their forecast for high unemployment and slow job growth for the rest of the year.

An analysis by Credit Suisse economist Jill Brown of ISM's employment measure in September suggests the economy added about 90,000 jobs in the service sector last month.

Copyright 2010 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs