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US stocks end mixed amid strong jobs report

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IANS New York
Last Updated : Nov 07 2015 | 6:57 AM IST

US stocks closed mixed after wavering in a tight range as a much-better-than-expected jobs report for October bolstered the case for a December rate hike by the US Federal Reserve.

The Dow Jones Industrial Average rose 46.90 points, or 0.26 percent, to 17,910.33 on Friday, Xinhua reported.

The S&P 500 edged down 0.73 point, or 0.03 percent, to 2,099.20. The Nasdaq Composite Index gained 19.38 points, or 0.38 percent, to 5,147.12.

US total nonfarm payroll employment increased by 271,000 in October, soundly beating market estimates and the unemployment rate was unchanged at 5.0 percent, the US Labor Department said on Friday.

Average hourly earnings for all employees on private nonfarm payrolls rose by nine cents to $25.20, also above market consensus.

"The overriding message from Friday's employment report is the soft patch is over and the rate hike is on," said Chris Low, chief economist at FTN Financial. "We have to conclude a rate hike is coming (on) December 16 unless remaining data releases undermine the message from Friday's employment report."

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Chicago Fed president Charles Evans, a voting member of the Federal Open Market Committee, the US Federal Reserve's policy-making arm, said on Friday that the report was "very good news" and that strong jobs growth would help push up inflation.

US Fed chair Janet Yellen reiterated earlier this week that the central bank may decide to raise short-term interest rates at its December policy meeting if the US economy is "performing well".

Overseas, European equities also finished mixed after the US jobs report on Friday.

Germany's benchmark DAX index at Frankfurt Stock Exchange rose 0.92 percent, while British benchmark FTSE 100 Index fell 0.17 percent.

In a weekly basis, all three major indices extended their gains into a sixth straight week, with the Dow, the S&P 500 and the Nasdaq up 1.4 percent, 1.0 percent and 1.8 percent, respectively.

--Indo-Asian New Service

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First Published: Nov 07 2015 | 6:42 AM IST

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