The report showed that the U.S. economy added 108,000 jobs in December following an upwardly revised increase of 305,000 jobs in November. Economists had been expecting jobs to increase by 215,000, which would have matched the increase previously reported for November.

The Labor Dept. noted that the increase in December reflected gains in manufacturing, health care, food services and drinking places, and professional and business services. A decrease in employment in the transportation and warehousing industry helped to offset the gains.

The report also showed that the unemployment rate unexpectedly edged down to 4.9 percent in December from 5.0 percent in November. The decrease in the unemployment rate came as some people left the labor market.

INTERNATIONAL MARKETS NEWS

Most Asian-Pacific benchmarks rallied, continuing a week-long winning streak on the back of strong tech shares and growing optimism about strong Japanese corporate results in 2006. South Korea’s Kospi hit an all-time high of 1.2% to 1,412.79 with Samsung Electronics, up 1.3%. Shanghai Composite rose 1%, while the Nikkei reached a five-year high of 16,428.21. Hong Kong ended up 0.5% on property and banking stocks.

European stocks closed in the positive, reaching new highs, lifted by strong tech stocks and U.S. payrolls data. The German DAX 30 rose 0.4%, the French CAC 40 gained 0.7%, and London’s FTSE 100 advanced 0.7%. The euro climbed 0.4% to $1.2156.

OIL, METALS, CURRENCIES

Crude oil prices advanced over $1 as natural gas prices gained ground. Light sweet crude for February delivery gained $1.16 to $63.95 a barrel. Gasoline added to $1.7959 a gallon. Heating oil gained a cent to $1.8000. London Brent climbed $1.28 to $62.41.

European gold climbed. In London gold rose to $536.30 per troy ounce from $526.90. In Zurich the precious metal advanced to $537.40 from $526.85. In Hong Kong gold fell $3.30 to close at $528.80. Silver closed at $8.96, up from $8.84.

The U.S. dollar declined against most major currencies. The euro was quoted at $1.2155, up from $1.2104. The dollar bought 114.54 yen, down from 115.85. The British pound traded at $1.7717, up from $1.7545.

EARNINGS NEWS

AZZ Inc. (AZZ: chart), manufacturer of electrical products, reported a Q3 net income of 30 cents a share, up from 22 cents in the same period in fiscal 2004, beating analyst estimate of 23 cents per share. Quarterly revenue was up 16% from the prior year''s result.

The Great Atlantic & Pacific Tea Company Inc. (GAP: chart), supermarket chain, announced that net loss for Q3 of fiscal 2005 narrowed to $1.74 a share, from $1.96 a share. Its loss from continuing operations narrowed to $1.80 a share vs. $1.89 a share in the comparable period last year. Total sales dropped 37% to $1.58 billion due to $850 million in year-ago sales from A&P Canada, which the company sold in August, but U.S. comparable sales advanced 1.8%. The company said it intends to pursue the implementation of the cost cutting initiative and invest in upgrading its stores.

The Shaw Group Inc. (SGR: chart), engineering and construction company, reported Q1 net income of 41 cents a share, up from 17 cents a share in the same period last year on 40% revenue growth, beating analyst estimate of 36 cents a share. The company attributed the revenue increase to emergency response and disaster relief work in the aftermath of two hurricanes, Katrina and Rita.

Wendy''s International Inc. (WEN: chart), restaurant operator, announced that its U.S. Wendy''s Q4 same-store sales dropped 2.9% at company stores, and 1.9% at U.S. restaurants. Tim Hortons fourth-quarter same-store sales increased 5.8% in Canada, and 6.7% in the U.S. Baja Fresh Mexican Grill Q4 same-store sales dropped 2.9%. Wendy''s announced its strategic initiatives were on track with its original timeline.

Best Buy Co (BBY: chart), home electronics retailer, reported that its December domestic same-store sales advanced 5.6%, and international same-store sales increased 6.6%. Revenue for the month ended Dec. 31, increased 12% to $5.7 billion. The retailer announced that it is well-positioned for Q4.