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U.S. stock markets closed higher on Friday buoyed by strong economic data. A resilient labor market and increasing consumer sentiment boosted market participants’ expectations of a soft landing of the economy. All three major stock indexes ended in positive territory. For the week, these indexes also finished in positive zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 0.4% or 130.49 points to close at 36,247.87, marking its highest close since Jan 12, 2022. Notably, 17 components of the 30-stock index ended in positive territory, while 13 ended in negative zone.
The tech-heavy Nasdaq Composite finished at 14,403.97, rising 0.4% due to strong performance of large-cap technology stocks. The tech-laden index posted its highest close since Apr 4, 2022.
The S&P 500 gained 0.4% to finish at 4,604.37, reflecting its highest close since Mar 29, 2022. In intraday trading, the broad-market index reached its 52-week high of 4,609.23. Eight out of 11 broad sectors of the benchmark ended in positive territory while three in negative zone. The Energy Select Sector SPDR (XLE) and the Technology Select Sector SPDR (XLT) rose 1.1% and 0.9%, respectively, while the Consumer Staples Select Sector SPDR (XLP) declined 0.7%.
The fear-gauge CBOE Volatility Index (VIX) was down 5.4% to 12.35. A total of 11 billion shares were traded on Friday, inline with the last 20-session average. The S&P 500 posted 33 new highs and no new lows while the Nasdaq recorded 104 new highs and 90 new lows.
Strong Jobs Data
The Department of Labor reported that the U.S. economy added 199,000 nonfarm workers in November compared with the consensus estimate of 170,000. The metric for October was 150,000. The healthcare sector was the biggest recruiter adding 77,000 jobs. Other major sectors are government, manufacturing and leisure & hospitality adding 49,000, 28,000 and 40,000 jobs, respectively.
Unemployment rate fell to 3.7% in November from 3.9% in October. The consensus estimate was also 3.9%. This was primarily due to higher labor force participation rate of 62.8%. However, the real unemployment rate (including discouraged workers and those holding part-time positions for economic reasons) fell to 7% in November from 7.2% in October.
Average hourly earnings rose 0.4% month over month in November compared with 0.2% in October. The consensus estimate was 0.3%. Year over year, wage rate increased 4% in November, in line with the consensus estimate. Average workweek increased marginally to 34.4 in November from 34.3 in October.
Consumer Sentiment Jumps
The University of Michigan reported that the preliminary reading of the Index for consumer sentiment in December jumped 13% to 69.4% from a six-month low of 61.3 in November. The consensus estimate was 62.4. The preliminary reading of December was the highest since August.
The sib-index for current condition climbed to 74 in December from 68.3 I November. The sub-index for future expectations surged to 66.4 in December form 56.8 in November.
In December, Americans expect the inflation rate to cool down to 3.1% over the next year down from 4.5% in November. The metric for December marked the lowest level since March 2021. Expectations of inflation over the next five years fell to 2.8% in December from 3.2% in November. The metric for November was the highest since 2011.
Weekly Roundup
Last week was a positive one for Wall Street. The Dow eked out a gain of less than 0.1%, the S&P 500 edged up 0.2% and the Nasdaq increased 0.7%. All three major stock indexes posted their six straight weekly gains. A steadily dwindling inflation and strong economic data raised investors’ expectation of a soft landing of the U.S. economy.
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Stock Market News for Dec 11, 2023
U.S. stock markets closed higher on Friday buoyed by strong economic data. A resilient labor market and increasing consumer sentiment boosted market participants’ expectations of a soft landing of the economy. All three major stock indexes ended in positive territory. For the week, these indexes also finished in positive zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 0.4% or 130.49 points to close at 36,247.87, marking its highest close since Jan 12, 2022. Notably, 17 components of the 30-stock index ended in positive territory, while 13 ended in negative zone.
The tech-heavy Nasdaq Composite finished at 14,403.97, rising 0.4% due to strong performance of large-cap technology stocks. The tech-laden index posted its highest close since Apr 4, 2022.
The major gainer of the tech-laden index was Warner Bros. Discovery Inc. (WBD - Free Report) . The stock price of the company climbed 6%. Warner Bros. Discovery currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 gained 0.4% to finish at 4,604.37, reflecting its highest close since Mar 29, 2022. In intraday trading, the broad-market index reached its 52-week high of 4,609.23. Eight out of 11 broad sectors of the benchmark ended in positive territory while three in negative zone. The Energy Select Sector SPDR (XLE) and the Technology Select Sector SPDR (XLT) rose 1.1% and 0.9%, respectively, while the Consumer Staples Select Sector SPDR (XLP) declined 0.7%.
The fear-gauge CBOE Volatility Index (VIX) was down 5.4% to 12.35. A total of 11 billion shares were traded on Friday, inline with the last 20-session average. The S&P 500 posted 33 new highs and no new lows while the Nasdaq recorded 104 new highs and 90 new lows.
Strong Jobs Data
The Department of Labor reported that the U.S. economy added 199,000 nonfarm workers in November compared with the consensus estimate of 170,000. The metric for October was 150,000. The healthcare sector was the biggest recruiter adding 77,000 jobs. Other major sectors are government, manufacturing and leisure & hospitality adding 49,000, 28,000 and 40,000 jobs, respectively.
Unemployment rate fell to 3.7% in November from 3.9% in October. The consensus estimate was also 3.9%. This was primarily due to higher labor force participation rate of 62.8%. However, the real unemployment rate (including discouraged workers and those holding part-time positions for economic reasons) fell to 7% in November from 7.2% in October.
Average hourly earnings rose 0.4% month over month in November compared with 0.2% in October. The consensus estimate was 0.3%. Year over year, wage rate increased 4% in November, in line with the consensus estimate. Average workweek increased marginally to 34.4 in November from 34.3 in October.
Consumer Sentiment Jumps
The University of Michigan reported that the preliminary reading of the Index for consumer sentiment in December jumped 13% to 69.4% from a six-month low of 61.3 in November. The consensus estimate was 62.4. The preliminary reading of December was the highest since August.
The sib-index for current condition climbed to 74 in December from 68.3 I November. The sub-index for future expectations surged to 66.4 in December form 56.8 in November.
In December, Americans expect the inflation rate to cool down to 3.1% over the next year down from 4.5% in November. The metric for December marked the lowest level since March 2021. Expectations of inflation over the next five years fell to 2.8% in December from 3.2% in November. The metric for November was the highest since 2011.
Weekly Roundup
Last week was a positive one for Wall Street. The Dow eked out a gain of less than 0.1%, the S&P 500 edged up 0.2% and the Nasdaq increased 0.7%. All three major stock indexes posted their six straight weekly gains. A steadily dwindling inflation and strong economic data raised investors’ expectation of a soft landing of the U.S. economy.