Wall Street, boosted by tech, ends week on high note
- Apple and Qualcomm boost technology sector.
- Investors look past mixed employment data.
After starting the day slightly lower, fueled by robust gains in heavyweights of the technology sector, major equity indexes in the U.S. pared their losses to wrap up the last day of the week higher.
Amid an optimistic holiday season sales forecast and the long lines of customers in front of stores to purchase the new iPhone, shares of Apple rose to $172.5, adding 2.6% on the day. Moreover, smartphone chip manufacturer Qualcomm's shares gained nearly 15% on reports of Broadcom (+6%) considering different options to buy the company.With a 0.85% daily increase, the S&P 500 Information Technology Index (SPLRCT) became the best performing sector.
Earlier in the session, the data released by the data released by the U.S. Bureau of Labor Statistics revealed that nonfarm employment rose by 261,000 in October following the dismal September reading while the unemployment rate fell to 4.1% for the first time in 17 years. However, annual wage growth disappointed the markets as it dropped to 2.4% from 2.8%. Commenting on the data, “it kind of confirms this Goldilocks-type scenario where it’s steady growth with really not a lot of inflationary pressure,” Michael Dowdall, investment strategist at BMO Global Asset Management in Chicago, told Reuters.
The Dow Jones Industrial Average added 21.28 points, or 0.09%, to 23,537.54, the S&P 500 rose 7.79 points, or 0.3%, to 2,587.64 and the Nasdaq Composite gained 48.88 points, or 0.73%, to 6,763.82. For the week, indexes gained 0.45%, 0.26% and 0.94% respectively.
Headlines from the NA session
- US Factory Orders bodes well for continued strength in business investment - Wells Fargo
- Key events for next week - Danske Bank
- J.P. Morgan sees Fed raising interest rates four times in 2018
- US ISM Non-manufacturing: New orders point to continued growth - Wells Fargo
- Fed's Kashkari: Wage growth appears to be muted
- NY Fed's GDP Nowcast edges higher to 3.2% for Q4 of 2017
- Atlanta Fed's GDPNow Q4 GDP forecast declines to 3.3%
- US NFP: jobs rebound, wages flat but should drift upward - Wells Fargo
- WTI firmer, upside stalled above $55.00
- US: ISM non-manufacturing PMI rises to 60.1 in October from 59.8 in September
- US: Service sector business activity growth remains strong in October - Markit
- US: Total nonfarm payroll employment rose by 261,000 in October
- US: Goods and services deficit at $43.5 bln in Sep, up $0.7 bln from $42.8 bln in Aug
- US: ISM non-manufacturing PMI rises to 60.1 in October from 59.8 in September
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
