Investor money coming off of the sidelines as the DJIA rose 300.86 points, or 1.11%, to 27,347.09, the S&P 500 gained 29.36 points, or 0.97%, to 3,066.92 and the NAS Comp added 94.04 points, or 1.13%, to 8,386.40. The DJIA sits less than 12 points from a closing record.
President Trump applauded as the US’ main indexes charged into landmark territory Friday, with the tech-heavy NAS hitting a record high for the 1st time since July, and the benchmark S&P 500 setting a closing record for the 3rd time in 5 days.
Investors took comfort from an upbeat US jobs report and data on Chinese manufacturing lessened concerns about slowing global growth.
“Stock Market up BIG! Record highs for S&P 500 and NASDAQ. Enjoy!” President Trump tweeted.
Job growth slowed less than forecast in October, while job gains in the prior 2 months were stronger than thought.
“A nice surprise, and also there were upwards revisions for September and August,” said an investment strategist at US Bank Wealth Management.
“To us that is an indication of the resiliency of the economy this late in the cycle and for today that is what is putting investors at ease and putting them on a risk-on mode here,” he said.
The strong jobs number helped overshadow a report that showed the manufacturing sector contracted for a 3rd straight month, signaling more Fed easing.
US-China trade rhetoric has appeared to be productive.
Before the jobs report, sentiment was supported by data showing China manufacturing activity unexpectedly expanded in October, easing concerns about a slowdown in demand from the world’s 2nd-largest economy as a result of US tariffs.
US-China trade news remained supportive for stocks, as Beijing’s state-media Xinhua News Agency reported the 2 countries have “reached consensus on principles.” Earlier, US Commerce Secretary Wilbur Ross said the “Phase 1” trade pact with China appeared to be in good shape.
About 76% of the 356 S&P 500 companies that have reported so far have beaten profit estimates, according to Refinitiv data.
On the week, the Dow rose 1.44%, the S&P 500 climbed 1.47% and the Nasdaq rose 1.74%.
- NAS Comp +26.4% YTD
- S&P 500 +22.3% YTD
- Russell 2000 +17.9% YTD
- DJIA+17.2% YTD
HeffX-LTN’s overall technical outlook for the US major stock market indexes is Bullish to Very Bullish for the week ended 1 November 2019.
Have a terrific weekend