US economy

Wall Street lifted by US job gains, oil earnings


US stocks ticked higher on Friday, closing a week of solid gains marked by a cautious tone from the Federal Reserve that cheered investors.

Wall Street had plenty to digest in a week that began with grim news from Caterpillar, whose 2019 outlook was worse than expected amid economic troubles in China. But amid a mixed bag of corporate earnings, the Federal Reserve signalled it would put its interest rate rises on hold. The S&P 500 on Thursday clinched its best January since 1987, reflecting investors’ enthusiasm over US-China trade negotiations and the central bank’s pledge to be patient.

A blockbuster jobs report and upbeat earnings from oil majors Exxon Mobil and Chevron lifted the market on Friday, though stocks finished the day off their session highs. The S&P 500 rose 0.1 per cent to 2,706.53, largely thanks to a 1.8 per cent gain for the energy sector. Tech shares were up 0.6 per cent, and financials saw a 0.5 per cent gain. Consumer discretionary shares, down 1.8 per cent, were the main laggard.

Gains of more than 3 per cent for Exxon and Chevron helped the Dow Jones Industry Average climb 0.3 per cent to 25,063.89. The Nasdaq Composite closed 0.3 per cent lower at 7,263.87.

The Dow secured its sixth straight week of gains. The blue-chip index was up 1.3 per cent on the week, while the S&P 500 rose 1.6 per cent — its fifth positive week in the last six. The Nasdaq added 1.4 per cent.

Stocks got an early boost on Friday after the labour department said non-farm payrolls grew by 304,000 in January, easily beating economists’ forecast of 165,000.

In other economic data, the Institute for Supply Management said its index tracking factory activity rebounded last month on strength in new orders and a decline in prices for raw materials, easing worries about the manufacturing sector.

Treasuries sold off in reaction to the data, sending yields higher. The yield on the 10-year Treasury jumped 4.9 basis points to 2.6842 per cent. The more policy-sensitive two-year yield rose 4.4 basis points to 2.506 per cent.

The dollar index, which measures the greenback against global currencies, was flat at 95.579.

Oil prices continued to climb, with West Texas Intermediate crude settling 2.7 per cent higher at $55.26 a barrel. Brent gained 3.1 per cent to $62.75 a barrel.



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