Friday, 20 July, 2018

Stocks rise as investors cheer jobs report

Traders work on the floor of the NYSE in New York US: Wall St opens higher on hopes of trade concessions
Ginger Lawrence | 09 July, 2018, 08:44

The broad advance in stocks suggests that traders anticipate that the trade spat won't last long enough or escalate badly enough to cause serious damage to either country's economy.

The Dow Jones Industrial Average gained 181.92 points, or 0.8 percent, to 24,356.74.

A solid pickup in hiring by US employers last month helped keep investors in a buying mood.

The S&P 500 index rose 23.21 points, or 0.8 percent, to 2,759.82.

The Nasdaq composite index was up 92.45 points to 7,678.88.

World stock markets rose and the euro climbed to a three-week peak on Friday as the threat of tariffs by the United States and China on billions of dollars of trade became a reality, though concerns about the conflict escalating capped the appetite for risk.

U.S. President Donald Trump has warned that the United States may ultimately target over $500 billion worth of Chinese goods, an amount that roughly matches its total imports from China past year.

Chemical weapons agency finds ´chlorinated´ chemicals in Syria´s Douma
Russian Federation has stuck by its ally Syria and insisted the attack was staged by the White Helmets volunteer rescue service. Two samples recovered from gas cylinders at the scene tested positive for chlorinated organic chemicals, the report said.

Instead, investors were encouraged by a solid pickup in hiring by USA employers last month.

Reflecting expectations that small USA companies are less at risk than multinationals from tariffs, the Russell 2000 index has outperformed the S&P 500, Dow and Nasdaq since early March.

Stocks closed broadly higher Friday, snapping two consecutive weekly declines for the market.

The Nasdaq gained 178.08 points, or 2.4 percent. Markets were watching to see if tight labor market conditions would force wages higher, a sign of inflation.

The S&P 500 is up 18.24 points, or 0.7 percent. The S&P 500 is up 3 percent so far in 2018, helped by deep corporate tax cuts that have boosted companies' earnings and led to massive share buybacks.

Bond prices rose. The yield on the 10-year Treasury fell to 2.82 percent.