Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Wall Street climbs on solid jobs data, trade hopes

Published 12/06/2019, 04:24 PM
Updated 12/06/2019, 04:24 PM
© Reuters. Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York

© Reuters. Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York

By Stephen Culp

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

All three major U.S. stock indexes gained ground, hovering within 1% 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%.

"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 Dec. 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."

"You have two very tough negotiators and a lot of tough issues to be agreed on," Ghriskey added. "But, based on what we're hearing from serious sources, it certainly appears we will be seeing some kind of trade deal."

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

The Dow Jones Industrial Average (DJI) rose 337.27 points, or 1.22%, to 28,015.06, the S&P 500 (SPX) gained 28.48 points, or 0.91%, to 3,145.91 and the Nasdaq Composite (IXIC) added 85.83 points, or 1%, to 8,656.53.

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

Energy stocks were buoyed by a 1.1% 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%.

Kudlow's comments also lifted tariff-vulnerable chip stocks, sending the Philadelphia Semiconductor index (SOX) up 1.6%.

Shares of cosmetics retailer Ulta Beauty Inc (O:ULTA) jumped 11.1%, the best performer in the S&P 500, after beating quarterly profit expectations.

Tesla Inc (O:TSLA) rose 1.7% after revealing it would receive state subsidies for its Chinese-built Model 3 cars.

3M Co (N:MMM) advanced 4.3% after Bloomberg reported the company was exploring a sale of its drug delivery systems business, which could fetch about $1 billion.

Advancing issues outnumbered declining ones on the NYSE by a 2.93-to-1 ratio; on Nasdaq, a 2.27-to-1 ratio favored advancers.

The S&P 500 posted 54 new 52-week highs and no new lows; the Nasdaq Composite recorded 124 new highs and 45 new lows.

© Reuters. Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York

Volume on U.S. exchanges was 6.64 billion shares, compared with the 6.65 billion-share average over the last 20 trading days.

Latest comments

Trade deal will happen 15th of December
I told you ... the China Lion has to Roar first. After two days of frightening the worldwide markets, it calms down. Now if Trump were to poke at the Lion again, then yes we can expect the Lion to Roar more.
there is no trade deal, they just using the news to hype up the Algos to manipulate the stock market.  The more they publish these fake news is simply telling China that Trump is bluffing.  China doesn't need to buy 50B of agricultural from us?  Go ahead raise the tariffs, China already got the upper hand.
I purchased futures on tomorrow's and Friday's headlines: Tomorrow's: &quot;Stocks down on trade deal concerns&quot;. Friday's: &quot;Stocks up on trade deal optimism&quot;.
Art of war tactics! Keep thy enemy guessing for a surprise attack. They are setting people up for the dump.
did I mention it was Reuters saying YESTERDAY that the financial world was going to fall apart because of no trade deal and the chinese reluctance to sign anything unless all tariffs were removed?
Trade deal is closer??! After US Congress signed Uyghur and Hongkong Act??? It is clear that US intention is to irritate China. How can a deal be possible if you stab more and more your trade partner? At this current condition, the so-called &quot;phase one&quot; deal is impossible let alone full trade deal. The most likely probable deal is US just cancelling the increase tariff threat at 15th Dec. This scheme is used for pumping US Stock, giving ecstatic false hope for investors, the so-called HOPIUM.
dear Trump is time for results and deals ... you are good in selling smoke.... but in the end people need facts not chats
What the beautiful news!
I think Michael Bloomberg is trying to torpedo Trump into the man who crashed the economy by putting so much hope in market about getting close to a deal, while in reality, the Trump administration is getting further and further away from a deal. I expect the inconvinient truth to come out very soon, when the 2020 election starts and markets fall and fall. If Trumps says A and markets go down and one day after Bloomberg says B and markets go up, there is a reason for this. Who is pulling the strings?
I also think mm is playing the Bloomberg game and not the Trump game. Witch is more worying because market is not tacking Trump serious. This means the deal is going to back fire for shore
FYI the election is until November, so you can continue playing with your rubber duck
Market was already up when us market open it has recovered last night and at morning. Trade deal talk just came 1 hour before market opening time in Usa and i have not seen any positive impact until now.
Is time to finally agree that US, sold worldwide himself as a beacon of democracy, transparency and justice has become the kind of country we (US) used to critize. Really a disappointment. But, sooner or later bad things happen. Next phase (and not the ones of mr. T) is phase 2 on the corruption line. Good luck.
LMAO , its been a while since I laughed so hard.
Laughable how POTUS reports no deal soon and media reports 24hrs later “close” citing sources and mkt still buys into it, we will look back on these times and ponder how crazy the headline manipulation became
how many times have we read this headline?
Forever
Did Mike Bloomberg get long on US index ? Surely he need some pocket money to finance his presidential campain. lol
he's just liquidating....
Tomorrow will be another great day with fantastic economy numbers released today. Maybe a 2% increase?
You guys could shut doors, nobody would miss this kinda info
Tough to believe any of these news stories about any trade deal with China anymore.
Lie brigade
Joke market.
feel like maniac
Because if fake news. What a shame on the great American.
because of.... sorry
This is madness! There is no trade deal with China in this year!
The truth will hit everyone soon :)
There will be no such thing as a trade deal. A deal with this megalomaniac means submission. For most country in the world, this would be the lowest one can go. It just not going to happen, no with that peace of sxxx, and not in this environment. Tarif man ? What a joke !!
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.