Local stocks rallied to one month highs today as stronger than expected jobs data boosted investor sentiment. However consumer discretionary stocks were sold off following a profit warning from one of the country’s retailers which sparked fears of weak Christmas sales. The All Ordinaries Index (XAO) added 35.8pts or 0.8pct to 4827.5 while the S&P/ASX 200 Index (XJO) firmed by 41.4pts or 0.9pct to 4741.3.

The big four banks all posted solid gains, with the S&P/ASX 200 Financials Index (XFJ) rising 1.5pct. Shares in Westpac (WBC) were the best out of the big four, gaining 2.4pct to $22.29 while the ANZ (ANZ) rose 2.2pct to $23.65 and the NAB (NAB) gained 1.6pct to $24. Shares in the Commonwealth Bank (CBA) rose 1.3pct to $50.24. Macquarie Group (MQG) firmed by 2.1pct to $36.64. However the Bank of Queensland (BOQ) slumped 5.5pct to $11.25 on a profit downgrade.

Mining stocks also fared well, with the exception of gold stocks which eased after the price of gold slumped in New York trade. At 4pm AEDT the Comex contract had recovered somewhat and was buying US$1388.80 an ounce. Shares in Newcrest Mining (NCM) fell 1.6pct to $40.68 but BHP Billiton (BHP) was firmer by 1.3pct to $45.44 and Rio Tinto (RIO) gained 0.5pct to $87.94. Iron ore miner Fortescue Metals Group (FMG) climbed 0.9pct to $6.57.

Energy stocks were mixed. The Nymex contract was trading higher at US$88.86 a barrel in Asian trade, however shares in Santos (STO) fell 0.2pct to $12.45 and Caltex (CTX) dropped 0.6pct to $14.05. Woodside Petroleum (WPL) shares firmed by 0.5pct to $42.95.

The Reject Shop (TRS) today announced it expects a drop in annual net profit due to recent rate hikes which have curbed consumer spending. Shares in TRS fell 21pct to $13.50 while David Jones (DJS) dropped 0.7pct to $4.32 and Harvey Norman (HVN) lost 0.7pct to $2.96. Kathmandu (KMD) closed steady at $1.29 while Myer Limited (MYR) added 1.7pct to $3.50.

Shares in Qantas (QAN) gained 2.3pct to $2.70.

The Ten Network (TEN) fell 0.3pct to $1.485. Billionaires Gina Rinehart, Lachlan Murdoch and James Packer will all join the company’s board from next Monday.

Shopping centre owner Westfield (WDC) today forecast earnings per share of $0.93 in 2011. WDC rose 0.8pct to $12.44.

Economic data released today showed employment rose by 54,600 in November, well above forecasts centred on job gains of around 20,000. The October result was revised up to show job growth of 36,900 (previously showed a rise of 29,700). Full-time employment rose by 55,100 (October jobs were down by 7,600) and part-time jobs fell by 400 (October jobs rose by 44,500).

The unemployment rate fell from 5.4pct to 5.2pct. The participation rate rose from 65.9pct to a record high of 66.1pct.

Across the states and territories unemployment rates in November were: NSW 5.1pct (5.4pct in October); Victoria 5.5pct (5.6pct); Queensland 5.5pct (5.6pct); South Australia 5.6pct (5.7pct); Western Australia 4.5pct (4.7pct); Tasmania 5.4pct (5.2pct); Northern Territory 3.1pct (3.1pct); ACT 3.1pct (3.1pct).

The Australian dollar gained almost a cent against the greenback on the back of the strong jobs numbers and at 4pm AEDT was worth US98.68c, £0.6235 and €74.12c.

On the market overall, a total of 2.58 billion shares were traded, worth $6.3 billion. 595 were up, 513 were down and 382 were unchanged.

At 4.15pm AEDT on the ASX24, the futures contract was at 4748, up 48pts.

Ahead tonight, weekly unemployment data is released in the US.