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 Bank stocks and other sectors tied to the pace of growth led on the
day, though continued weakness in crude oil weighed on energy
shares. While major indexes ended off their highs of the session,
both the Dow and S&P closed at records.
Payrolls rose by 321,000 in November, way above the 230,000
estimated, while the unemployment rate held steady at 5.8 percent, a
six-year low.
The report blew past forecasts, but also raised expectations that a
rate hike from the Federal Reserve may materialize sooner than
previously thought.
Ronald Sanchez, chief investment officer of Fiduciary Trust Company
International in New York, said the number was "unambiguously
strong," though it "could mean some changes to policy
recommendations with the Fed. June 2015 is back on the table for
when rates could rise."
Financials <.SPSY> rose 1 percent as higher interest rates would
prop up earnings in the sector. Bank of America <BAC.N> rose 2.7
percent to $17.68 while Goldman Sachs <GS.N> was up 1.8 percent to
$195.45, boosting the Dow.
Utilities <.SPLRCU>, a dividend play, fell 0.8 percent as Treasuries
yields rose. Energy <.SPNY> fell 1.2 percent alongside a 1.7 percent
drop in crude <CLc1> prices. Most sectors ended well off their highs
of the session.
"The day’s market action has to be seen in the context of the
recovery we’ve had year-to-date. Payrolls confirm the strength of
the economy, but that strength is reflected in stock prices," said
Sanchez, who helps oversee $16 billion in assets.
Separate data showed new orders for U.S. factory goods fell for a
third straight month in October, pointing to a slowdown in
manufacturing activity.
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The Dow Jones industrial average <.DJI> rose 58.69 points, or 0.33
percent, to 17,958.79, the S&P 500 <.SPX> gained 3.45 points, or
0.17 percent, to 2,075.37 and the Nasdaq Composite <.IXIC> added
11.32 points, or 0.24 percent, to 4,780.76.
For the week, the Dow rose 0.7 percent and the S&P rose 0.4 percent.
It was the seventh straight weekly gain, a streak not seen in a year
for both. The Nasdaq fell 0.2 percent on the week.
American Eagle Outfitters <AEO.N> fell 13.8 percent to $11.91 after
the teen apparel retailer forecast a current-quarter profit below
analysts' estimates and reported its fifth straight drop in
quarterly income.
About 5.81 billion shares traded on all U.S. platforms, according to
BATS exchange data.
NYSE advancers outnumbered decliners 1,614 to 1,480, for a 1.09-to-1
ratio; on the Nasdaq, 1,809 issues rose and 927 fell, for a
1.95-to-1 ratio favoring advancers.
The S&P 500 posted 98 new 52-week highs and 10 new lows; the Nasdaq
Composite recorded 168 new highs and 93 new lows.
(Editing by Nick Zieminski)
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