US stocks closed at record highs on Friday

A surprisingly strong jobs report fueled Friday's modest rally

US stocks closed at record levels on Friday, 05 December 2014 wrapping a seventh straight week with gains. A surprisingly strong jobs report fueled Friday's mostly modest, albeit record-setting, advance. The U.S. economy added 321,000 jobs in November, beating the consensus number by 86,000, while unemployment rates remained steady at 5.8%.

The Dow Jones Industrial Average set an intraday high and came within 10 points of 18,000 level, but settled 58.60 points, or 0.3%, higher at 17,958.79. The S&P 500 rose 3.45 points, or 0.2%, to close at 2,075.37, an all-time high.

The gain on the benchmark were led by financials and health-care sector stocks, while energy and utilities sector shares lagged behind. Gains in JPMorgan Chase and Goldman Sachs Group were the biggest among blue-chip stock gainers.

The Labor Department said the U.S. added 321,000 jobs in November, the biggest gain since January 2012 and well beyond the 235,000 that were expected. Average hourly wages jumped 9 cents, or 0.4%, after two weak readings, although the 12-month increase was little changed at 2.1%. The unemployment rate held at 5.8%, as expected.

Among other economic data expected for the day, the U.S. trade deficit narrowed slightly in October, falling from an upwardly revised $43.60 billion (from $43.00 billion) in September to $43.40 billion while the consensus expected a decline to $42.00 billion. The goods deficit was virtually unchanged at $62.70 billion while the services surplus increased to $19.20 billion from $19.10 billion. Factory orders declined 0.7% in October after declining an upwardly revised 0.5% (from -0.6%) while the consensus expected an increase of 0.3%. The large downside surprise resulted from weaker oil prices, which caused a 6.5% decline in petroleum refinery orders. This led to a 1.5% decline in nondurable goods orders after those orders declined only 0.2% in September. Separately, the Consumer Credit report for October showed an increase of $13.20 billion, which was lower than the consensus estimate of $16.50 billion.

Bullion prices slumped on Friday, 05 December 2014 at Comex as a stronger-than-expected jobs report dulled its shine as a safe haven. Stronger economic data raise the possibility of an interest rate hike which weakens demand for gold since it does not yield interest.

Gold for February delivery fell $17.30, or 1.4%, to settle at $1,190.40 an ounce. But the precious metal still managed to close out the week 1.3% higher. March silver lost 32 cents, or 1.9%, to $16.26 an ounce.

Crude-oil prices fell again on Friday, 05 December 2014 at Nymex with the U.S. benchmark settling at its lowest level in more than five years. Oil briefly erased some losses after a stronger-than-expected U.S. jobs report, but then it slumped to trade at its lowest level since mid-2009, weighed down in part by a rallying dollar. A stronger buck often hurts commodities that trade in dollars, since that makes them more expensive for holders of other currencies. Crude also was pressured by Saudi Arabia cutting January prices for U.S. and Asian buyers.

On the New York Mercantile Exchange, crude futures for delivery in January dropped by 97 cents, or 1.5%, to settle at $65.84 a barrel. The U.S. benchmark endured a weekly loss of 0.5%.

Participation was a bit below average with 738 million shares changing hands at the NYSE floor.

Monday's session will be free of economic data.

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