Stocks rise on hopes of Fed move; Dow touches 11K

NEW YORK (AP) — Stocks rose today after another weak report on unemployment added to expectations that the Federal Reserve will step in to prop up the economy.

The Dow Jones industrial average climbed above 11,000 today for the first time since early May. The Dow rose 56 points in midday trading.

High unemployment remains a major hurdle as economic growth continues to be sluggish. The Labor Department's report, considered the most important piece of news on the economic calendar, did little to alter the view that the economy remains weak.

While job creation remains scarce, however, there could be a silver lining. Expectations are growing that the Federal Reserve will try to stimulate the economy by stepping up its purchases of government bonds. The gloomy jobs report could give the Fed more incentive to act.

Jason Pride, director of investment strategy at wealth management firm Glenmede, said "by not being stronger, [the jobs report] gives them the window of opportunity to take action."