The main Wall Street indexes recorded a second consecutive weekly rise on Friday, with investors’ attitudes were backed by better-than-expected job data and progress in US-China trade talks.
The blue-chip index Dow Jones Industrial Average and the broader benchmark S&P 500 reported a weekly growth of about 2% this, while the technology Nasdaq Composite advanced by 2.7%. On Friday, Dow Jones added 40.36 points to its value and reached a level of 26,424.99 points. The S&P 500 added 0.46% to its value to 2,892.74 points, while Nasdaq Composite rose by 0.59% to 7,938.69 points.
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 5.60% to 12.82 a new 6-month low.
At a macroeconomic level, the US economy added 196,000 jobs in March, according to the data of the Labor Ministry. The economists expected 175,000 new jobs. At the same time, unemployment in the United States remains at 3.8%, but wage growth accelerates more slowly than expected – by 3.2% from the projected 3.4%.
The number of jobs is right in the middle. It is not the most encouraging but is also not disappointing.
The US indexes were backed this week by the progress in the US-China trade talks. President Donald Trump said on Thursday that rapid progress had been made and added that “we will know in the next four weeks” whether a deal can be reached. Chinese Deputy Prime Minister Liu He said that a new consensus had been reached on both sides on the text of the trade agreement.
Growths this week come at a time when investors are preparing for the upcoming reporting season, which begins next week. J.P. Morgan Chase and Wells Fargo are among the companies that will announce their quarterly results. The markets will focus on the earnings results, as any gains or positive guidance will improve the market sentiment and ivestors’optimism.
In the bond markets, yields on 10-year and 30-year US Treasury bonds declined to 2.499% and 2.908%, respectively.
Corporate stocks performance
Rising stocks outnumbered declining ones on the New York Stock Exchange by 2114 to 856 and 123 ended unchanged; on the Nasdaq Stock Exchange, 1802 rose and 828 declined, while 80 ended unchanged.
The financial and raw materials sector performed best this week with an increase of 4.3% and 3.3%, respectively. Banking has led to growth in the financial sector. The stocks of Morgan Stanley jumped by more than 6% this week, while Goldman Sachs, Bank of America and Citigroup ended the week with a 5% rise. At the same time, the shares of J.P. Morgan Chase added 4% to their value.
On Friday, the best performers of the session on the Dow Jones Industrial Average were Chevron Corp (+1.3%), Walgreens Boots Alliance Inc (+1%) and Home Depot Inc (+0.8%), while on the opposite side were Dow Inc (-4.14%), Boeing (-0.99%) and Merck & Company (-0.86%).
The top performers on the S&P 500 were Apache Corporation (+6.59%), Chesapeake Energy Corporation (+6.23%) and EOG Resources Inc (+5.3%), while the worst performers were Signet Jewelers Ltd (-5.12%), Dow Inc (-4.14%) and Capri Holdings Ltd (-2.47%).
Snap stock surged after the firm unveiled some new initiatives that could improve the social media company’s user engagement.
Dow Inc, a recent spinoff, saw its shares tumble after JPMorgan analyst Jeffrey Zekauskas initiated coverage with an Under Weight rating.