Unemployment rate unexpectedly slips to 5.8% from 5.9%
U.S. stocks eked out marginal gains amid thin volumes on Friday, 07 November 2014 but it was still enough to register fresh record highs for two of the three main benchmarks, capping a third straight week of gains. The S&P 500 and Dow Jones Industrial Average closed at record highs for the third consecutive day. However, investors' reaction to the latest employment data, showing 214,000 new jobs were added last month was mostly muted.
The Dow Industrial added 19.46 points, or 0.1% to 17,573.93 and ended the week 1% higher. The Nasdaq Composite closed 5.94 points, or 0.1%, lower at 4,632.53 and was flat over the week. The S&P 500 closed fractionally higher at a new record level of 2,031.92 and gained 0.7% over the week.
The Labor Department said on Friday that the U.S. generated a weaker-than-expected 214,000 new jobs in October, while the unemployment rate unexpectedly slipped to 5.8% from 5.9%. It was the ninth straight month that the economy has added 200,000 jobs or more, a streak last accomplished in 1994. The jobs data pointed to U.S. economic growth, which in turn stoked hopes of more demand for oil.
The data did not stoke up fears of the Fed being in a rush to hike the fed funds rate. To that point, the 10-yr note rallied, sending its yield lower by eight basis points to 2.30% while the Dollar Index took a step back from its best level since mid-2010. The index narrowed its weekly gain to 0.7%.
Separately, the Consumer Credit report for September showed an increase of $15.90 billion, which was lower than the consensus estimate of $16.00 billion.
The consumer discretionary sector lagged throughout the session with Dow component Disney falling 2.2% despite reporting a one-cent beat.
Precious metals ended higher on the last trading day of the week on Friday. Gold snapped a seven-day losing streak on Friday, 07 November 2014 after data showed the U.S. economy created fewer jobs than expected in November.
Gold for December delivery climbed $27.20, or 2.4%, to settle at $1,169.80 an ounce. But the precious metal still closed out the week 1.5% lower. December silver gained 30 cents to $15.71 an ounce.
Crude Oil futures settled higher on Friday, 07 November 2014 after the U.S. jobless rate hit a six-year low. Traders were keeping an eye on an uptick in tensions in Ukraine, as oil has suffered through a withering week, largely driven by the OPEC's move to cut its forecast for oil demand, and Saudi Arabia's decision to cut oil prices sold to the U.S.
Light, sweet crude for December delivery rose 74 cents, or 1%, to settle at $78.65 a barrel on the New York Mercantile Exchange. On the week, however, prices declined 2.4%. It was sixth straight weekly loss for crude.
Participation was ahead of average with more than 750 million shares changing hands at the NYSE floor.
There is no economic data scheduled to be released on Monday.
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