Stocks rose Friday as investor sentiment got a lift from much stronger-than-expected U.S. jobs data.
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The Dow was up 250 points. The S&P 500 gained 0.8% to hit a record high. The Nasdaq also hit an all-time high, climbing 0.9%.
Exxon Mobil was the best-performing stock in the Dow on the back of stronger-than-forecast quarterly results. The stock gained 1.5%. Industrials and financials were the biggest advancers among S&P 500 sectors, rising at least 0.7% each.
“The October jobs report was very strong,” said Gus Faucher, a chief economist at PNC. “Job growth slowed a bit because of the GM strike, but with the strike over it should bounce back in November.”
The U.S. economy added 128,000 jobs in October, the Labor Department said Friday. Economists polled by Dow Jones expected a gain of 75,000 jobs for the previous month. October jobs growth easily beat estimates despite a decline of 42,000 jobs in the autos sector due to a General Motors strike that has now been settled.
Jobs growth data for September and August was also revised substantially higher. September’s number was revised up to 180,000 from 136,000. August jobs growth was revised to 219,000 from 168,000.
Other data will be released at 10 a.m. ET when the Institute for Supply Management is expected to release data on U.S. manufacturing activity for October. U.S. manufacturing fell to its lowest level in a decade in September amid lingering worries around U.S.-China trade talks.
Trade dented stocks on Thursday — the last day of October — after Bloomberg News reported Chinese officials have been casting doubt over the possibility of a long-term trade deal with the U.S. The Dow fell more than 100 points Thursday while the S&P 500 dipped from a record.
“Compared to mid-summer, the overall probability of a trade deal and the risks of a failure are lower, in our view,” said Tom Lee, the founder and head of research at Fundstrat Global Advisors. “But the closer we get to December 31, one could argue China’s relative bargaining position strengthens.”
“If markets tumble due to trade failure, this would hurt Trump’s 2020 standing. Hence, this remains an important risk,” Lee said.
The corporate earnings season continued on Friday, with Exxon Mobil reporting earnings that topped analyst expectations. U.S. Steel shares rose around 5% after the company posted Thursday afternoon a smaller-than-expected quarterly loss. Qorvo also reported better-than-expected results and issued strong guidance for the current quarter, sending its stock up more than 17%.
Around 70% of S&P 500 companies have reported quarterly numbers thus far, according to FactSet. Of those companies 75% have reported better-than-expected earnings.
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November 01, 2019 at 08:30PM
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Dow jumps 150 points, S&P 500 hits fresh record after October jobs report easily beats expectations - msnNOW
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