Wall St. climbs as jobs data supports upbeat economic outlook


NEW YORK (Reuters) – US stocks UU They rose in a generalized rally on Friday due to stronger than expected job growth in April, coupled with muted wage gains that leave investors optimistic about the outlook for the economy and interest rates.

The Nasdaq recorded a record close, while the S & P 500 finished just below a record high.

The Labor Department said employers added 263,000 jobs in April, which exceeded expectations, and the unemployment rate dropped to 3.6 percent, the lowest level since December 1969. The average earnings per hour came just by below expectations, which indicates a muted inflationary pressure.

The data supports the patient position of the Federal Reserve toward the increase in interest rates, which is positive for the shares.

"We continue to have an increasingly strong job growth, and it seems that there is less and less inflation, which is really strange." Normally he does not see it, and basically what he points out to the market is that the Federal Reserve is on hold, "said Jamie Cox, managing partner of Harris Financial Group in Richmond, Virginia. "That could mean better profits in the future for companies."

Boosting the S & P 500 and the Nasdaq, Amazon.com Inc rose 3.2%, after CNBC reported that Warren Buffett's Berkshire Hathaway Inc. bought shares of the Internet retail giant for the first time.

The discretionary consumer sector increased 1.5%, leading an increase among the 11 main sectors of S & P.

The Dow Jones Industrial Average increased 197.16 points, or 0.75%, to 26,504.95, the S & P 500 gained 28.12 points, or 0.96%, to 2,945.64, and the Nasdaq Composite added 127.22 points, or 1.58%, to 8,164.00.

During the week, the S & P 500 and the Nasdaq rose 0.2%, while the Dow fell 0.2%.

According to Refinitiv data, nearly 400 S & P 500 companies have reported quarterly results so far, three quarters have exceeded earnings estimates.

Optimistic reports have shifted the S & P 500 earnings estimate for the first quarter to an increase of almost 1% compared to the 2% decline projected at the beginning of April.

Newell Brand Inc shares rose 13.5% after the manufacturer of Rubbermaid and other consumer goods exceeded Wall Street's expectations of a quarterly adjusted profit, as it benefited from cost savings and savings. higher prices

Network gear maker Arista Networks Inc fell 10.4% after it forecast weak earnings for the current quarter, while Activision Blizzard Inc fell 4.8% after the video game maker forecast earnings for the current quarter. below expectations, since it puts more money in its franchises to compete in the competition.

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The forward issues outperformed the declines in the New York Stock Exchange in a ratio of 3.77 to 1; On Nasdaq, a ratio of 3.85 to 1 favored the promoters.

The S & P 500 recorded 36 new highs of 52 weeks and two new lows; The Nasdaq Composite registered 91 new highs and 30 new lows.

The volume in the United States exchanges was 6.47 billion shares, compared to the average of 6.62 billion for the full session in the last 20 business days.

Report of Caroline Valetkevitch; Additional reports by Sruthi Shankar and Shreyashi Sanyal in Bengaluru; Edited by Jonathan Oatisand Leslie Adler

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