Business
2019.12.07 07:55 GMT+8

Wall Street climbs on solid jobs data, trade hopes

Updated 2019.12.07 07:55 GMT+8
CGTN

Wall Street ended solidly higher on Friday as a strong jobs report and optimism about China-U.S. trade negotiations ahead of an upcoming deadline helped stoke investor risk appetite.

All three major U.S. stock indexes gained ground, hovering within one percent of record highs set last week.

But as a tumultuous week of contradictory trade news and mixed economic data drew to a close, only the S&P 500 posted a weekly gain. The Dow and the Nasdaq ended the session down from last Friday's close.

The U.S. economy added 266,000 jobs in November, the largest increase in 10 months, according to the Labor Department, blowing past analyst estimates. The unemployment rate edged down to 3.5 percent.

"This type of report shows underlying economic strength, and it gives corporate management confidence in the strength of the economy," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. "Primarily because of (trade negotiations), there's been a lot of uncertainty with management."

Regarding trade, White House economic adviser Larry Kudlow said that while the December 15 remains the date when the next round of tariffs on Chinese goods will take effect, "the reality is constructive talks, almost daily talks; we are, in fact, close."

U.S. Treasury yields rose after the strong employment report, and bank stocks had their best day in over a month, rising 1.6 percent.

The Dow Jones Industrial Average rose by 337.27 points, or 1.22 percent, to 28,015.06, the S&P 500 gained 28.48 points, or 0.91 percent, to 3,145.91 and the Nasdaq Composite added 85.83 points, or one percent, to 8,656.53.

Of the 11 major sectors of the S&P 500, all but utilities closed in positive territory, with energy, financials and trade-sensitive industrials enjoying the largest percentage gains.

Energy stocks were buoyed by a 1.1-percent rise in crude prices CLc1 following an agreement between OPEC and its allies to extend output cuts through 2020.

Industrials had their best day in over a month, rising 1.3 percent.

Source(s): Reuters
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