Posted on 01/06/17
| News Source: CNBC
U.S. equities rose on Friday as the technology sector led, while investors parsed through key employment data.
The Dow Jones industrial average rose about 90 points, with Goldman Sachs and Walt Disney contributing the most gains, lifting it to a new all-time high. The Dow also came within 0.37 points of hitting 20,000 for the first time. The S&P 500 gained 0.5 percent to reach a new intraday high, with information technology advancing 1 percent.
"The Dow has been approaching 20,000 for several weeks now. Strong jobs news, combined with optimism about the incoming administration's policies is lifting stocks," said Kate Warne, investment strategist at Edward Jones.
The Nasdaq composite outperformed, trading 0.8 percent higher, also hitting a new all-time high. Leading the tech-heavy index higher were the so-called FANG stocks (Facebook, Amazon, Netflix and Google-parent Alphabet), which all rose.
The U.S. economy added 156,000 jobs in December, according to data from the Bureau of Labor Statistics. Economists polled by Reuters expected an increase of 178,000. The unemployment rate came in at 4.7 percent, in line with expectations.
"This report is very good," said Michael Arone, chief investment strategist at State Street Global Advisors. "The fantastic thing here is the jump in hourly wages." Average hourly wages rose 10 cents to $26, representing a 2.9 percent annualized gain.