U.S. Stocks Advance After After Payrolls as Energy Shares Jump

U.S. stocks climbed after jobs data showed a rebound in payrolls and energy shares recovered as oil prices remained volatile after dropping below $45 a barrel for the first time since November.

The S&P 500 added 0.4 percent to 2,399 at 4 p.m. in New York. The benchmark has moved in a tight range this week, despite relatively strong corporate results. The Dow Jones Industrial Average rose 55 points to 21,007.

  • Telecom shares up 1.5%; 10-year Treasury yield little changed
  • Financial shares down 0.1%
  • Energy shares up 1.6% as oil jumps 2%; materials stocks add 1.4%
    • Oil earlier dropped 3.9%, below $45 a barrel for the first time since OPEC agreed to cut output in November as U.S. shale confounds the producer group’s attempts to prop up prices that have collapsed about 7.3% this week
  • Volume in S&P 500 down 10% from 30-day average
  • VIX up to 10.6
  • U.S. equity funds saw net outflows of $9.3 billion in the week to May 3, the second-largest outflows in six weeks, BofAML strategists wrote in a note, citing EPFR Global data
    • U.S. payroll gains rebounded in April by more than forecast (+211,000) and the jobless rate unexpectedly fell to 4.4%, signaling that the labor market remains healthy and should support continued increases in consumer spending
    • While the unemployment rate is now the lowest since May 2007, wages were a soft spot in the report, climbing 2.5% from a year earlier (+2.7% est.)
    • After-market Friday: Berkshire Hathaway (BRK/A)
    • Pre-market Monday: Newell Brands Inc (NWL), Mallinckrodt PLC (MNK), Sysco Corp (SYY), Cimarex Energy Co (XEC), Tyson Foods Inc (TSN), AES Corp/VA (AES)
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