Positive jobs report gives stocks a spurt
Stocks marched broadly higher on Wall Street in afternoon trading Friday after the government reported that employers added far more jobs than expected in November.
The gains erased the S&P 500’s losses from earlier in the week, placing the benchmark index on track for a weekly gain.
The Labor Department said employers added 266,000 positions, well above estimates of 184,000. The report also showed unemployment falling to a 50-year low. Separately, an index that measures how consumers feel about the economy showed an increase from last month.
The encouraging reports offer reassurance for investors who may have been worried that consumers might be pulling back on spending, said Rob Haworth, senior investment strategist at U.S. Bank Wealth
Management.
“Increasing jobs, people back to work, plus that jump in consumer confidence tells you that the consumer is still there, and probably will still spend money,” he said. “It’s a better than we expected set of data, and clearly the market is pricing that in.”
The surprisingly good employment picture comes at the end of what started as a rough week for the market. Increased trade tensions and disappointing economic data sent the market to steep losses on Monday and Tuesday and the major indexes stayed in a slump through Thursday.
Technology and bank stocks led the gains Friday. Micron Technology rose 3.2 percent and JPMorgan Chase climbed 1.8 percent .
The solid jobs report sent bond yields higher, which banks rely on to charge higher interest rates on mortgages and other loans. The yield on the 10-year
Treasury rose to 1.84 percent from 1.79 percent late Thursday.
Utilities lagged the market as investors shifted money away from safe-play holdings.
Steady job growth has been one of the bright spots in the economy, along with solid consumer spending. The latest employment report is also a welcome development following reports earlier this week that showed manufacturing continues to shrink and growth in the service sector is slowing.