The Register Citizen (Torrington, CT)
Stocks recover after slow week
U.S. stocks logged their biggest advance in almost four weeks after the country’s jobless rate hit an 18-year low. The dollar finished higher while Treasury yields flattened out as the market assessed the impact of America’s inconclusive trade talks with China.
The S&P 500 Index closed higher Friday but failed to recoup its losses for the week. Apple Inc. and Berkshire Hathaway Inc. were among the benchmark’s biggest advancers as the tech and financial sectors led the charge.
U.S. hiring rebounded less than anticipated in April but the unemployment rate dropped below 4 percent for the first time since 2000. Wage gains unexpectedly cooled, suggesting the job market still has slack to absorb. The report’s implications for monetary policy will be eyed after the Federal Reserve kept rates on hold this week, saying inflation is near its target without suggesting any need to accelerate its hiking path.
“This was a really solid number — it shows all the job growth that the economy needs without wages picking up, which would be detrimental to margins,” Sameer Samana, global technical and equity strategist for Wells Fargo Investment Institute, said by phone. “It should all be supportive of further consumption, which should keep the economy going at a very steady pace without inflation being a major issue, which historically has been very good for investments.”
Markets were also following talks between U.S. and Chinese officials in Beijing intently for signs that the world’s two biggest economies are making progress on trade, but there’s been limited advancement so far. U.S. officials asked China to bring forward reductions in its trade surplus, raising the hurdle for any overarching deal, while state-run news agency Xinhua said the two parties agreed on some issues but disagreed on others.