Financials and telecoms sectors led the gains
U.S. stocks rallied on Friday, 04 December 2015 with the S&P 500 and Dow industrials posting their biggest one-day gains in nearly three months. Investors took a strong U.S. jobs report as a further indication that the Federal Reserve is more than likely to raise interest rates later this month. Meanwhile, comments from European Central Bank President Mario Draghi, who said the bank can step up monetary stimulus if needed, also helped lift markets. The main indexes finished the week flat or marginally higher as they more than took back losses from a deep Thursday plunge.
The Dow Jones Industrial Average jumped 369.96 points, or 2.1%, to 17,847.63 and gained 0.3% over the past week. The Nasdaq Composite ended the session up 104.74 points, or 2.1%, to 5,142.27 and posted a 0.3% weekly gain. The S&P 500 gained 41.97 points, or 2.05%, to 2,091.60 and was flat over the week.
Financials and telecoms led the gains, while the energy sector was the only one to finish in the red.
Equities charged out of the gate and doubled their gains during afternoon action even though the November Employment Situation report came in ahead of expectations.
Treasuries stumbled immediately after the release of the data, but they followed that move with a charge to new session highs. The 10-yr note ended near its best level of the session, pressuring its yield four basis points to 2.27%.
The latest job report showed that U.S. companies and government agencies added 211,000 jobs last month, topping forecasts for a nonfarm payrolls rise of 200,000. The unemployment rate remained at 5%; also, September and October payroll numbers were revised higher. The ECB on Thursday unveiled additional economic stimulus measures, but they were less intensive than the market expected.
The greenback rallied on the back of the jobs data gaining 0.8% on Friday. The data all but guaranteed that the Fed will raise interest rates later this month.
Separately, the US trade deficit widened to $43.90 billion from an upwardly revised $42.50 billion (from -$40.80 billion) in September. Market had expected the trade deficit to be $43.0 billion. October exports were $184.10 billion, which was $2.70 billion less than September exports. October imports were $228.00 billion, which was $1.30 billion less than September imports.
Bullion prices rallied on Friday, 04 December 2015 at Comex. Gold futures rallied on Friday to tally their first weekly gain in seven weeks, as monthly data on U.S. employment showed strong growth, but didn't provide any real surprises.
Gold for February delivery on Comex jumped $22.90, or 2.2%, to settle at $1,084.10 an ounce, off the session's high of $1,088.30. That was the largest percentage and dollar gain since 20 August 2015. Prices haven't seen a settlement this high since Nov. 11, based on the most-active contracts. The gold contract climbed about 2.6%. March silver rallied by 45.1 cents, or 3.2%, to end at $14.528 an ounce for a weekly climb of 3.4%.
Crude oil futures fell sharply on Friday, 04 December 2015 at Nymex with the U.S. benchmark settling below $40 a barrel after the Organization of the Petroleum Exporting Countries agreed to keep pumping crude at current production levels despite a global glut. A strong dollar also pushed prices lower.
January Brent crude, the global oil benchmark, dropped 84 cents, or 1.9%, to close at $43 a barrel on London's ICE Futures exchange. It was down 4.2% for the week.
On the New York Mercantile Exchange, January West Texas Intermediate crude dropped $1.11, or 2.7%, to finish at $39.97 a barrel, after touching a $39.60 low. The contract saw a weekly decline of 4.2%.
Monday's data will be limited to the 15:00 ET release of the October Consumer Credit report.
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