Market’s new year winning streak continues
Associated Press
NEW YORK — After another solid monthly jobs report, technology companies again led the way as U.S. stocks rose for the fourth day in a row to start 2018. They are on their longest new-year winning streak in eight years.
The Labor Department said employers added 148,000 jobs in December. That was a bit less than experts expected, but still underscored the continued health of the economy.
The unemployment rate remained 4.1 percent for a third straight month, the lowest level since 2000. For all of 2017, employers added nearly 2.1 million jobs, enough to lower the unemployment rate from 4.7 percent a year ago.
Wages grew and factory managers received more new orders than in any month since 2004. Health care and consumer-focused companies also rose, and the weaker dollar gave industrial firms like Boeing and basic materials makers a lift.
Wages and worker productivity are rising at about the same rate, according to Ed Keon, managing director and portfolio manager of QMA, a fund manager owned by Prudential Financial. He said if that trend continues, company profits should stay solid and inflation won’t be much of a risk to the economy.
The Standard & Poor’s 500 index gained 19.16 points, or 0.7 percent, to 2,743.15, and rose 2.6 percent for the week. The Dow Jones industrial average added 220.74 points, or 0.9 percent, to 25,295.87. The Nasdaq composite rose 58.64 points, or 0.8 percent, to 7,136.56. The Russell 2000 index of smaller-company stocks rose 4.29 points, or 0.3 percent, to 1,560.01. The Dow industrials closed above 25,000 points for the first time Thursday and the Nasdaq breached 7,000 points earlier in the week.
The last time stocks rose for at least four consecutive days to start a new year was in 2010, when the S&P 500 finished higher for six days in a row. It rose 1.9 percent over that run.
Apple gained $1.97, or 1.1 percent, to $175 and Alphabet, Google’s parent company, picked up $14.53, or 1.3 percent, to $1,110.29. Chipmaker Xilinx jumped $3.66, or 5.2 percent, to $74.15 and eBay added $1.12, or 2.9 percent, to $39.69.
Consumer-focused and health care companies also stand to benefit from sustained economic growth. Amazon climbed $19.55, or 1.6 percent, to $1,229.14. Netflix advanced $4.36, or 2.1 percent, to $209.99. Used car retailer CarMax edged up $2.79, or 4.1 percent, to $71.04.
Among health care companies, Align Technology, which doubled last year, surged $7.77, or 3.3 percent, to $241.07 and contact lens and surgical products maker Cooper Companies gained $6.95, or 3.1 percent, to $230.50.
Bond prices fell. The yield on the 10-year Treasury note rose to 2.47 percent from 2.45 percent. The yield on the 2-year note rose to 1.96 percent from 1.95 percent.
With the holiday season in the rear view mirror, companies began to report their most recent results. Wine, liquor and beer maker Constellation Brands fell $5.91, or 2.6 percent, to $219.88 after its thirdquarter report disappointed investors. Retailer Francesca’s plunged $1.55, or 20.7 percent, to $5.95 after it said it struggled over the holidays as fewer people came to stores and its shoppers spent less. It cut its profit and sales forecasts.
Barnes & Noble fell to its lowest price since 1994 after the bookseller said its sales slumped over the holidays. The struggles weren’t limited to its physical stores as online sales dropped 4.5 percent. That’s partly because Amazon continues to win over more and more people to its Prime membership program. Barnes & Noble sank 90 cents, or 13.8 percent, to $5.60.