Stocks Rally, Bonds Fall as Jobs Miss Shrugged Off: Markets Wrap

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  • Dow Jones, S&P 500 and Nasdaq indexes climb to all-time highs
  • Crude oil drops from the highest close in more than 3 years
“Equities is a better risk reward story at this point in the cycle,” says Savita Subramanian of BofAML.

Equities worldwide extended their stellar start to 2018, with U.S. indexes rising to record highs for a third consecutive day, as the synchronized growth story continues to win over investors.

Treasuries slumped and the dollar was flat after a report showed U.S. payroll gains slowed by more than forecast in December, wages picked up slightly and the jobless rate held at the lowest level since 2000. The S&P 500 Index powered to a fresh record and registered its best week since December 2016 as investors looked past the jobs miss, speculating that Republican tax cuts will lead to higher corporate earnings. The Dow Jones Industrial Average and Nasdaq Composite Index also hit all-time highs.

"I wouldn’t overreact to this report," Alan Krueger, a professor of economics at Princeton University, said on Bloomberg Television. "I don’t think this really changes the economic outlook all that much for 2018."

The Stoxx Europe 600 climbed with automakers and healthcare stocks outperforming. In Asia, benchmark indexes in Japan, South Korea and China were among the gainers after U.S. shares surged to fresh records Thursday. Emerging-market equities reached the highest since 2011.

Commodities fell as oil pulled back from the highest close in more than three years.

Bloomberg’s Julie Hyman on the jobs report

Daybreak: Americas." (Source: Bloomberg)

Terminal users can read more in our markets blog.

These are the main moves in markets:

Stocks

  • The S&P 500 Index climbed 0.7 percent to 2,743.15 as of 4:06 p.m. in New York, while the Dow Jones Industrial Average gained 0.9 percent to 25,295.87. The NASDAQ Composite Index rose 0.8 percent to 7,136.558, also its best week since December 2016.
  • The Stoxx Europe 600 Index climbed 0.9 percent.
  • The U.K.’s FTSE 100 Index rose 0.4 percent.
  • Germany’s DAX Index rose 1.2 percent.
  • The MSCI Asia Pacific Index gained 0.7 percent to the highest on record.
  • The MSCI Emerging Market Index increased 0.8 percent.

Currencies

  • The Bloomberg Dollar Spot Index was little changed after dropping 0.1 percent. It declined for a fourth straight week.
  • The euro fell 0.2 percent to $1.204.
  • The Japanese yen weakened for a third day, dropping 0.3 percent to 113.13 per dollar.


Bonds

  • The yield on 10-year Treasuries rose two basis points to 2.47 percent.
  • Germany’s 10-year yield was little changed at 0.44 percent.
  • Britain’s 10-year yield rose one basis point to 1.24 percent.

Commodities

  • West Texas Intermediate oil for February delivery fell 57 cents to settle at $61.44 a barrel on the New York Mercantile Exchange.
  • Gold dropped 0.2 percent to $1,320.19 an ounce.
  • Copper dipped 1 percent to $3.23 a pound.

— With assistance by Cormac Mullen

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