US close: Stocks close sharply higher following 'goldilocks' jobs report
Stocks closed sharply higher on Friday despite a mixed jobs report, with the Dow Jones Industrials cutting into the heavy losses recorded earlier in the week.
At the close, the Dow Jones Industrial Average was up 1.42% at 26,573.72, while the S&P 500 was also ahead 1.42% at 2,952.01 and the Nasdaq Composite saw out the session 1.40% firmer at 7,982.47.
The Dow closed 372.68 points stronger on Friday, following on from a solid performance in the previous session as a result of market participants beginning to bet on the Federal Reserve cutting interest rates at its meeting later in the month following a recent string of dismal data.
While sentiment took another beating on Thursday after a weak ISM services reading triggered another bout of volatility in financial markets and briefly knocked the Dow Industrials below its 200-day moving average, news that US non-farm payrolls rose more or less as expected last month helped investors breathe a sigh of relief in regards to the state of the US economy, even if only for a moment.
According to the Department of Labor, hiring increased by 136,000 in September and non-farm payroll gains for the prior two months were revised higher by a combined 45,000. Economists had forecast a reading of 140,000 for September.
The monthly unemployment rate of 3.5% was the gauge's lowest reading in half a century.
However, IG's Chris Beauchamp wasn't entirely convinced: "The bulls have sought to wrest control away from the bears who have dominated for most of the week. Yesterday's post-ISM rebound has continued in the wake of a non-farm payrolls report that echoes the 'Goldilocks' reports of years past – weak job growth but not too weak, and slightly slower wage growth, but not too slow.
"Today’s figure still leaves the Fed on course to ease policy this month, but without having to become more drastic in its approach. While sentiment remains cautious ahead of trade negotiations this week it is still clear that there is plenty of cash on the sidelines that is prepared to move into action when a swift drop like that this week provides the opportunity to snap up some bargains."
Elsewhere on the data front, the US trade deficit in goods and services rose roughly $1.0bn in August, according to the Department of Commerce, as weakening foreign demand and the ongoing trade spat with China took a bite out of US exports.
The US trade balance grew 1.6% to $54.9bn for the month, higher than expected on the Street, as imports increased 0.5% and exports rose 0.2%.
In corporate news, Apple shares closed 2.81% higher after the tech giant asked its suppliers to up production of its iPhone 11 by 10%.
Dow Jones - Risers
Apple Inc. (AAPL) $227.01 2.80%
Merck & Co. Inc. (MRK) $85.00 2.73%
Travelers Company Inc. (TRV) $144.92 2.28%
JP Morgan Chase & Co. (JPM) $114.62 2.17%
Unitedhealth Group Inc. (UNH) $219.82 2.06%
Johnson & Johnson (JNJ) $133.66 1.88%
Procter & Gamble Co. (PG) $124.00 1.86%
Goldman Sachs Group Inc. (GS) $200.80 1.80%
Visa Inc. (V) $175.98 1.80%
Intel Corp. (INTC) $50.92 1.78%
Dow Jones - Fallers
Dowdupont Inc. (DWDP) $30.52 0.00%
International Business Machines Corporation (CDI) (IBM*) $143.66 0.00%
3M Co. (MMM) $155.72 0.38%
Home Depot Inc. (HD) $227.93 0.49%
Chevron Corp. (CVX) $113.85 0.62%
Walgreens Boots Alliance, Inc. (WBA) $52.97 0.70%
McDonald's Corp. (MCD) $211.69 0.79%
Caterpillar Inc. (CAT) $121.04 0.83%
Nike Inc. (NKE) $93.07 0.92%
Boeing Co. (BA) $375.63 0.98%
S&P 500 - Risers
Skyworks Solutions Inc. (SWKS) $80.64 4.37%
Nektar Therapeutics (NKTR) $18.97 4.20%
Chubb Corp. (CB) $162.03 3.59%
Thermo Fisher Scientific Inc. (TMO) $292.27 3.32%
ConAgra Brands Inc (CAG) $28.86 3.18%
CME Group Inc. (CME) $216.02 3.15%
Clorox Co. (CLX) $151.38 2.97%
Intercontinental Exchange Inc (ICE) $93.96 2.90%
Edwards Lifesciences Corp. (EW) $229.40 2.87%
Cincinnati Financial Corp. (CINF) $117.41 2.82%
S&P 500 - Fallers
HP Inc (HPQ) $16.64 -9.57%
Apache Corp. (APA) $22.15 -5.18%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $250.60 -2.65%
Mosaic Company (MOS) $19.39 -1.72%
Align Technology Inc. (ALGN) $181.59 -1.72%
Gap Inc. (GPS) $16.23 -1.70%
General Electric Co. (GE) $8.57 -1.61%
Noble Energy Inc. (NBL) $20.58 -1.58%
Albemarle Corp. (ALB) $66.32 -1.35%
Helmerich & Payne Inc. (HP) $38.31 -1.34%
Nasdaq 100 - Risers
Skyworks Solutions Inc. (SWKS) $80.64 4.37%
Check Point Software Technologies Ltd. (CHKP) $111.00 2.87%
Apple Inc. (AAPL) $227.01 2.80%
Mondelez International Inc. (MDLZ) $55.98 2.68%
Charter Communications Inc. (CHTR) $427.72 2.65%
KLA-Tencor Corp. (KLAC) $161.11 2.64%
Fiserv Inc. (FISV) $105.70 2.57%
Broadcom Inc. (AVGO) $281.43 2.55%
Activision Blizzard Inc. (ATVI) $55.44 2.53%
Micron Technology Inc. (MU) $44.55 2.51%
Nasdaq 100 - Fallers
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $250.60 -2.65%
Align Technology Inc. (ALGN) $181.59 -1.72%
Ctrip.Com International Ltd. Ads (CTRP) $30.35 -1.46%
Alexion Pharmaceuticals Inc. (ALXN) $98.03 -1.15%
Wynn Resorts Ltd. (WYNN) $108.91 -0.86%
Tesla Inc (TSLA) $231.43 -0.69%
CSX Corp. (CSX) $66.71 -0.37%
J.B. Hunt Transport Services Inc. (JBHT) $108.58 -0.18%
Symantec Corp. (SYMC) $23.48 -0.04%
Expedia Group Inc. (EXPE) $133.22 -0.02%