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Friday 10 March 2017

Wall Street ends up; jobs data points to economic strength

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US stocks rose on Friday after a solid jobs report pointed to strength in the domestic economy and supported expectations the Federal Reserve will raise interest rates next week.

Indexes ended lower for the week, however, with the S&P 500 and Nasdaq breaking a six-week streak of gains.

Government data showed 235,000 jobs were added in the public and private sectors in February, far exceeding economists' average estimate of 190,000.


Fed Chair Janet Yellen signalled last week the US central bank is set to raise rates this month if employment and other economic data hold up. The Fed meets March 14-15.

With inflation edging up closer to the Fed's 2 percent target, traders were pricing in a 92 percent chance of a rate increase at the Federal Open Market Committee's meeting next week, up from 85 percent before the data.

Gains were broad-based, though the utilities index , which fell sharply earlier in the week and lost 1.2 percent for the period, was the day's best-performing sector, ending up 0.8 percent.

The Dow Jones Industrial Average ended up 44.79 points, or 0.21 percent, at 20,902.98, the S&P 500 gained 7.73 points, or 0.33 percent, to 2,372.6 and the Nasdaq Composite added 22.92 points, or 0.39 percent, to 5,861.73. 

For the week, the Dow was down 0.5 percent, the S&P 500 was down 0.4 percent and the Nasdaq was down 0.2 percent.
Friday marked the 50th day of Donald Trump's US presidency. Since he took office, the Dow has broken above 21,000 and the S&P 500 has crossed USD20 trillion in market value on bets he would usher in tax cuts, simpler regulations and higher infrastructure spending.

Finisar Corp shares fell 22.7 percent after the network equipment maker gave disappointing revenue and profit forecasts for the current quarter.

The S&P 500 posted 42 new 52-week highs and five new lows; the Nasdaq Composite recorded 82 new highs and 36 new lows.

About 6.9 billion shares changed hands on US exchanges, close to the 7.0 billion daily average for the past 20 trading days, according to Thomson Reuters data.



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