The Dow Jones rose 300 points as a “Goldilocks” report showed that the US added 315,000 jobs in August

US stocks rose on Friday after data showed that the US economy added more than 300,000 jobs last month, which was well in line with investor expectations.

How are shares traded?
  • Dow Jones Industrial Average DJIA,
    + 0.12%
    It advances 332 points, or 1.1%, to 31,999.

  • S&P 500 SPX Index,
    + 0.08%
    It rose 45 points, or 1.2%, to 4,015 points.

  • Nasdaq Composite,
    It jumped 135 points, or 1.2%, to 11,922, on its way to snapping a five-day losing streak.

The Dow and S&P 500 were trying to book consecutive gains after ending a four-day losing streak on Thursday. All three major indicators were on their way to weekly declines.

What is driving the markets

Stocks found support after the August jobs report showed that the US economy added 315,000 new jobs last month, roughly in line with the 318,000 jobs forecast from a survey of economists by the Wall Street Journal.

While the headline figure was in line with expectations, the unemployment rate surprised economists, rising to 3.7% from 3.5% in July. To be sure, this increase was largely driven by the higher labor force participation rate which rose to 62.4% from 62.1%.

Analysts said the report was neither too hot nor too cold.

Larry Cordesco, co-portfolio manager at Osterweis Growth and Income Fund, offered a similar assessment during a phone interview with MarketWatch.

“It looks like Goldilocks’ number, it’s kind of right where the expectations were,” Larry Cordesco, co-portfolio manager at Osterweis Growth and Income Fund, said in a phone interview. “It’s not showing much of a slowdown or a major acceleration, so I think that combined with the overall situation in the market, it’s positive for stocks today.

“We’ll see if it holds up, but that’s the initial reaction,” he added.

The data reinforced the perception that the Federal Reserve is likely to raise the federal funds rate by 75 basis points for the third time in a row when policymakers meet later this month.

“A 75 basis point rate hike is almost certain at this point,” said Ron Temple, head of US equities at Lazard Asset Management.

Some feared that a repeat of July’s groundbreaking report, which showed more than 500,000 jobs created in a month’s time, might pressure the Fed to be more aggressive in its monetary policy.

We see: Trading in ‘Goldilocks’ jobs report could be risky as S&P 500 faces stiff technical resistance

Treasury yields remained low in the wake of the data, although short-term yields fell more than long-term yields, a sign that traders expect a less aggressive pace of interest rate hikes, which tend to have a large impact in the short term. run yield.

The two-year treasury TMUBMUSD02Y,
The yield is down 9.4 basis points at 3.435%, while the 10-year yield is TMUBMUSD10Y,
It was down four basis points at 3.226%.

With lower yields, the ICE DXY US dollar index fell,
It slipped to 109.27, down 0.6% on the day, even as the dollar advanced to trade north of 140 yen USDJPY,
+ 0.01%
against the dollar for the first time since the late 1990s. The movement in the index, which measures the dollar’s strength against a basket of rival currencies, was largely driven by a 0.6% rise in EURUSD,
+ 0.19%
value against the dollar, bringing the common currency back to par with its American rival.

Major US exchange-traded funds also rose after the news, with the SPDR S&P 500 Trust SPY,
+ 0.08%And the
SPDR Dow Jones Industrial Average Trust DIA,
+ 0.11%And the
and Invesco QQQ ETF QQQ,
It is progressing in line with its core indicators.

Small cap stocks also traded higher, with the Russell 2000 RUT,
+ 0.49%
Climbing 1.2%.

Cryptocurrency prices also rose on Friday, with Bitcoin BTCUSD,
+ 0.54%
Up 1.2% at $20316, according to data from CoinDesk and Ethereum (ETHUSD),
+ 1.80%
It was up 3.3% at $1,633, according to Kraken data.

In other news, the Commerce Department said Friday that orders for manufactured goods fell 1% in July, confounding expectations for a 0.2% rise. The drop in orders marks the first decline after nine consecutive monthly gains.

Focus on stocks
  • Starbucks Corporation
    Shares fell 0.4% as the company appointed Laxman Narasimhan to take over as CEO.

  • Broadcom Inc.
    + 2.91%
    Shares rose 4.7% after the company’s latest earnings report.

  • A jump in crude oil prices helped boost stocks of oil and gas companies such as APA Corp.what or what,
    + 3.64%
    Halliburton Company
    And the Marathon Oil Company.
    + 3.62%
    WTI CLV22,
    + 1.89%
    Futures for October delivery rose 1.8% to $88.12 in recent trading after a plan by the Group of Seven nations to try to curb Russian oil prices. Energy stocks were the best performers among the 11 sectors of the S&P 500 Index.

  • Lululemon Athletica
    + 7.37%
    It was up 9.8% thanks to strong earnings.

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