Strong jobs report carries S&P 500 to record

Associated Press

NEW YORK — Stocks rose Friday following a better-thanexpected U.S. jobs report, and the strong finish pushed the Standard & Poor’s 500 index to its third straight weekly gain despite some weakness earlier in the week.

The gains were widespread, and telecom and health care stocks helped lead the way. Overseas markets also were higher after negotiators hit a breakthrough in the United Kingdom’s efforts to leave the European Union.

The S&P 500 rose 14.52 points, or 0.6 percent, to finish at 2,651.50, another record. The Dow Jones industrial average gained 117.68, or 0.5 percent, to 24,329.16, and the Nasdaq composite rose 27.24, or 0.4 percent, to 6,840.08.

The U.S. jobs report, which is the economic highlight of each month, showed that employers added 228,000 jobs last month and the unemployment rate remained at a low 4.1 percent. It’s the latest evidence that the U.S. economy continues to improve, insync with the rest of the world.

Paychecks, though, have not been getting much bigger, and hourly wages rose less last month than economists expected. Higher pay would help workers spend more, but it also could lead to higher inflation.

“The way risk markets are looking at it is it’s very much a Goldilocks environment: still muted or low inflation and very positive growth,” said Erin Browne, head of asset allocation at UBS Asset Management.

She said that one area where wages seemed to be improving more was in the manufacturing industry. It’s an indication that companies are spending more on equipment and other things to grow, an encouraging sign that economists had been waiting years to see.

The jobs report is the last major piece of economic data before the Federal Reserve meets next week to discuss interest rate policy.