By Anora Mahmudova and Barbara Kollmeyer, MarketWatch 321,000
jobs added in November, unemployment rate at 5.8%
NEW YORK (MarketWatch)--The U.S. stock market moved higher on
Friday after a surprisingly strong jobs report, sending the S&P
500 and Dow industrials to intraday record levels.
The blowout report showing that employers added 321,000 jobs in
November, beating the consensus number by 86,000, while
unemployment rates remained steady at 5.8%, offers further signs
that the U.S. economy is improving.
Eric Wiegand, senior portfolio manager at U.S. Bank Wealth
Management, said the jobs report had very little to complain
about.
"For optimist, strong gains in the labor market means the
economy is getting stronger. Even if this means the Fed will raise
rates sooner, it will be for the right reasons," Wiegand said.
"The current environment of low inflation and easy money is a
goldilocks scenario for stocks," he added.
Wiegand also predicted the Fed's actions still will be measured
and transparent. Still, investors will be watching the outcome of
the FOMC meeting on Dec. 16-17 closely for any hints on the timing
of interest rate increases.
Worries about rate increases, however, didn't prevent benchmarks
from inching toward new records and modest weekly gains. The
S&P 500 (SPX) rose, setting an intraday high, led higher by
gains in financials and health-care sector stocks, while utilities
and energy sector shares lagged behind.
The Dow Jones Industrial Average (DJI) set an intraday high and
was trading within 10 points of the 18,000 level.
The Russell 2000 (RUT) was outperforming large-caps again,
rising sharply, while the tech-heavy Nasdaq Composite (RIXF) also
edged higher
Read also: 10 biggest risks to the stock market in 2015
Economic data: The strong November jobs tally represented the
biggest gain since early 2012 and extends the strongest streak of
hiring in several decades. Virtually every industry was hiring and
many of the new jobs were higher paying ones.
In a good sign, the average hourly wage of American workers rose
a strong 0.4% in November to $24.66 after two straight weak
readings. Still, wages are only up 2.1% in the past 12 months, a
rate that's barely changed since the recovery began in
mid-2009.
Factory orders fell a worse-than-expected 0.7% in October, the
Commerce Department reported.
Stocks to watch: Discount retailer Big Lots Inc.(BIG) posted a
third straight quarter of same-store sales growth, as a narrowing
loss led the company to raise the top end of guidance for the
current quarter. Shares plunged.
Delia's Inc. (DLIAV) wiped out 85% of its value after the teen
retailer, said it is filing for Chapter 11 bankruptcy.(BIG)
Tenet Healthcare Corp. (THC) jumped more than 4%. The company
will be among the health-care stocks benefiting if a proposal to
expand Medicaid in Florida to cover about 1 million uninsured is
adopted, analyst Chris Rigg at Susquehanna said in a report.
Shares of Gap Inc.(GPS) added to gains made late Thursday after
the retailer said November comparable sales were up 6% versus the
same month a year ago.
For more on today's movers read out Movers & Shakers
column
Overseas markets: While the European Central Bank gave no hints
at Thursday's meeting about future stimulus, markets were convinced
otherwise, with European stocks up 1%. That came even as the
Bundesbank cut its German growth forecasts for this year and the
next two. The FTSE 100 was up slightly.
Chinese trading volume hit a record, with the Shanghai Composite
Index closing up 1.3% in a wild day of trading. The index has
gained nearly 10% this week. The Nikkei 225 index rose just 0.2%,
but supported the dollar, which stayed above the key Yen120
level.
Oil prices continued to fall, with crude (CLF5) hovering around
$66 a barrel and Brent under $70 a barrel after Saudi Arabia cut
prices for U.S. and Asia oil, and analysts are waiting to see if
other OPEC nations will follow. Gold prices(GCG5) fell 1.4%.
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