Indian ADRs end with strong gains
U.S. stocks rallied on Friday, 06 December 2013 after a stronger-than-anticipated monthly jobs report lifted stocks with the S&P 500 and Dow industrials snapping a five-session losing streak. A solid November employment report translated into a solid day of gains for the major averages. While there was some talk that the encouraging job growth raised the odds of the Fed announcing a tapering at its December meeting, the message of the markets today was either that it didn't believe there would be a tapering this month or that it doesn't fear a tapering this month.
The Dow Jones Industrial Average gained 198.69 points, or 1.3%, to close at 16,020.20. The blue-chip index ended the week with a 0.4% decline. The Nasdaq Composite jumped 29.36 points, or 0.7%, to finish at 4,062.52. The tech-heavy index rose less than 0.1% for the week for its fourth-straight weekly gain. The S&P 500 rose 20.06 points, or 1.1%, to close at 1,805.09, climbing back above the milestone level of 1,800 that it first cleared last month. The benchmark index finished down less than 0.1% for the week.
All ten economic sectors ended higher led by consumer staples, industrials and financial sectors.
As per latest data, at Wall Street, the U.S. Department of Labor said 203,000 jobs were created in November, above the average guess of 185,000. The unemployment rate fell 0.3 basis points to 7% as furloughed government workers returned to their jobs.
Non farm payrolls were revised up for September (to 175,000 from 163,000) and down slightly for October (to 200,000 from 204,000). Nonfarm private payrolls increased by 196,000 (consensus 200,000). The report also detailed that average hourly earnings increased by 0.2% (consensus 0.2%) while aggregate earnings increased 0.6% (a good portent for consumer spending). The average workweek edged up 0.1 to 34.5 hours (consensus 34.5) and factory overtime increased 0.1 to 3.5 hours.
The Fed has been buying $85 billion a month in Treasurys and mortgage-related assets since September 2012 in an effort to boost economic growth. The stimulus program, also known as quantitative easing or QE, has contributed to weakness in the U.S. dollar.
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Bullion prices closed with a modest loss on Friday, 06 December 2013 as traders reacted to a stronger-than-expected U.S. jobs report for November. The upbeat jobs report raised expectations that the Federal Reserve may soon scale back its bond-buying program and that put pressure on gold, though prices finished well off the lows of the day.
Gold for February delivery settled at $1,229 an ounce on the Comex division of the New York Mercantile Exchange, down $2.90, or 0.2%. It had fallen to as low as about $1,214 right after the jobs data, rebounded to trade at highs around $1,242, then pulled back again. Prices lost 1.7% for the week. March silver closed at $19.52 an ounce, down almost 5 cents, or 0.2%. Prices saw a 2.6% weekly loss.
Oil futures closed modestly higher on Friday, 06 December 2013 at Nymex to score a weekly gain of more than 5% as upbeat economic data, including strong U.S. jobs growth, raised the outlook for energy demand. Crude oil for January delivery settled at $97.65 a barrel on the New York Mercantile Exchange, up 27 cents, or 0.3%, for the session. Prices for the week tacked on 5.3%.
In terms of volume, NYSE volume totaled 671 million shares.
Indian ADRs ended higher on Friday. In the IT space, Infosys rose 3% at $55.48 and Wipro added 2.76% at $11.91. In the banking space, ICICI Bank advanced 4.44% at $38.54 and HDFC Bank rose 3.27% at $35.71. In the other sectors, Tata Motors was up 1.77% at $32.13 and Dr Reddys Laboratories rose 3% at $40.56.
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