POU:CC - Stocks Pare Weekly Losses
Stocks rose on Friday, cutting losses for the week, as August's jobs report came in about as expected. The data eased fears that a hotter labour market would give the Federal Reserve leeway to get more aggressive with its rate hikes.
The Dow Jones Industrials index popped 331.45 points to break for lunch Friday at 31,987.87.
The S&P 500 surged 44.21 points to 4,011.06, after dipping below the 4,000 mark for the first time since July.
The NASDAQ Composite jumped 115.58 points, or 1%, to 11,900.70.
The major averages are still set to end the week lower, however, and notch their third negative week in a row after slumping in the last days of August.
The Dow has reduced its week-to-date decline to just under 1%. The S&P is set to slid 1% on the week, and the NASDAQ is on track to close the week lower by 1.8%.
Shares of retailer Lululemon jumped nearly 10% after reporting quarterly results that beat Wall Street's expectations.
Investors were comforted by the highly anticipated jobs report, which showed the economy added 315,000 jobs for the month, just under the Dow Jones estimate for 318,000. One expert called it a “Goldilocks” report.
The unemployment rate rose to 3.7%, two-10ths of a percentage point higher than expectations. The August report is particularly important because it's one of the last major economic reports the Fed will weigh before it raises rates at its September meeting. This data point could help the central bank determine whether a 75-basis-point hike.
The last major economic report of note is August CPI on Sept. 13 and is more likely to determine how aggressive the Fed needs to be in the near term.
Treasury prices muscled higher, lowering yields to 3.24% from Thursday's 3.26%. Treasury prices and yields move in opposite direction.
Oil prices regained $1.64 to $88.25 U.S. a barrel.
Gold prices re-strengthened $18.00 to $1,727.30 U.S. an ounce.