Stocks Lift by Job Report
August job losses were less than expected, though the jobless rate rose to a 26-year high. Next week’s watch list: Beige Book, trade deficit, consumer sentiment
U.S. stocks wrapped up a rather lackluster week on Friday with a short-covering rally before the long Labor Day weekend. Industrial, technology, and telecom issues stood out in a slowly traded session.
Traders apparently found some hope in the U.S. employment report for August, which showed a smaller than expected drop in nonfarm payrolls of 216,000, but a larger than forecast rise in the unemployment rate to 9.7% — the highest level in 26 years. Many economists see payrolls rising by yearend, notes S&P MarketScope.
On Friday, the 30-stock Dow Jones industrial average finished higher by 96.66 points, or 1.03%, at 9,441.27. The broad Standard & Poor’s 500-stock index added 13.16 points, or 1.31%, to 1,016.40. The tech-heavy Nasdaq composite index gained 35.58 points, or 1.79%, to 2,018.78.
Treasuries plunged as stocks rose. The dollar index fell. Gold futures failed to crack $1,000. Oil futures fell.
Next week’s economic calendar is light. The Federal Reserve’s Beige Book survey of economic situation on Wednesday will be a highlight, but is expected to simply reflect the Fed’s cautious optimism on the recovery noted in Wednesday’s August 11-12 FOMC minutes. The July trade report, scheduled for release Thursday, is expected to show the trade deficit widening marginally to $27.5 billion. Also, the University of Michigan consumer sentiment index for September, scheduled for release Friday, is expected to rise to 67.0.