Stocks Climb as Jobs Report Dims Hawkish Fed Bets: Markets Wrap

(Bloomberg) -- Stocks climbed on speculation the economy is recovering at a pace that won't make the Federal Reserve imminently take away the liquidity punch bowl that has helped push the market to a record.

In a feat not seen since 1997, the S&P 500 closed at an all-time high for a seventh straight day. That was after data showed U.S. job growth surged the most in 10 months, while the unemployment rate edged up to 5.9%. The report bolstered views the central bank won't rush to taper its stimulus program any time soon. Tech shares consolidated this week's leadership position, while economically sensitive companies underperformed. The dollar fell alongside 10-year Treasury yields.

“Today's jobs report was overall stronger, but not strong enough to raise inflation and tightening concerns,” wrote Fawad Razaqzada, an analyst at ThinkMarkets. “It keeps the ‘goldilocks' scenario intact for stocks, and encourages dollar longs to ease off the gas ahead of the long weekend break.”

More comments:

• Mike Loewengart, managing director of investment strategy at E*Trade Financial:

  • “Though there's a combination of good and mediocre in the read today, it's doubtful that this will move the needle on the Fed's stance or timing for moving to tighten policy.”

• Seema Shah, chief strategist at Principal Global Investors:

  • “While the stronger-than-expected payroll number signals a continued buoyant recovery, the rise in unemployment rate suggests some slack in the market and, therefore, hopefully some respite for the Fed hawks.”

  • Jason Pride, chief investment officer of private wealth at Glenmede:

    • “Today's report likely does not significantly change the Fed's calculus here, as the U.S. labor market is far from its ‘full employment' mandate.”

    Among the corporate highlights, International Business Machines Corp. sank as President Jim Whitehurst is stepping down after three years at the century-old tech company. Lordstown Motors Corp. is being probed by the U.S. Justice Department in relation to claims that the company exaggerated potential sales of its electric Endurance pickup truck, a person familiar with the matter said. The shares tumbled.

    These are some of the main moves in markets:

    Stocks

    • The S&P 500 rose 0.8% as of 4 p.m. New York time
    • The Nasdaq 100 rose 1.2%
    • The Dow Jones Industrial Average rose 0.4%
    • The MSCI World index rose 0.5%
    • The Russell 2000 Index fell 1%

    Currencies

    • The Bloomberg Dollar Spot Index fell 0.5%
    • The euro rose 0.1% to $1.1865
    • The British pound rose 0.5% to $1.3836
    • The Japanese yen rose 0.5% to 111.02 per dollar

    Bonds

    • The yield on 10-year Treasuries declined three basis points to 1.42%
    • Germany's 10-year yield declined three basis points to -0.24%
    • Britain's 10-year yield declined three basis points to 0.70%

    Commodities

    • West Texas Intermediate crude fell 0.1% to $75.15 a barrel
    • Gold futures rose 0.6% to $1,788.30 an ounce

    ©2021 Bloomberg L.P.

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