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

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Written by
Oliver Renick
Written by

Oliver Renick

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(Bloomberg) -- 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
POLITICS:
- Passage of the House's health-care bill gives the Obamacare repeal effort new life after months of wrangling, but key Republican senators are already pushing it aside to write their own bill with no clear timetable to act
- Trump's Reciprocal Tax Faces Rough Ride Under World Trade Rules
- ECONOMY:
  - 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.)
  - EARNINGS:
    - 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)