Wall Street Pulls Off a Rare Four-Day Winning Streak

(Reuters) —
John Bishop, foreground, works with fellow traders on the floor of the New York Stock Exchange, Tuesday, March 1, 2016. U.S. stocks are opening modestly higher as the market recovers from a loss the day before. (AP Photo/Richard Drew)
Traders on the floor of the New York Stock Exchange, March 1. (AP Photo/Richard Drew)

Wall Street ended higher on Friday after employment data allayed investors’ concerns about a sluggish economy without bolstering fears of an imminent interest rate hike.

It was the first time since October that the S&P 500 enjoyed a four-session winning streak. And for the first time since early January, the Dow Jones industrial average rose above the 17,000 mark while the S&P 500 ended a fraction below 2,000, levels that some traders see as psychologically important.

The gains followed a report that nonfarm payrolls increased by 242,000 jobs last month. However, lower wages and hours kept a lid on inflation, a key factor as the Federal Reserve weighs when to next raise U.S. interest rates.

“This number shows the economy is strong and the Fed’s got time. It doesn’t have to run off the sidelines and get involved in raising rates,” said John Brady, managing director at R.J. O’Brien & Associates in Chicago.

Traders still see the odds overwhelmingly against a rate hike at the Fed’s meeting on March 15-16, although some see potential for an increase in June.

Mostly steady gains in recent weeks have left the S&P 500 down 2 percent in 2016 after its worst January since 2009.

“Expectations went too far on a recession expectation. That’s why the market has rallied in the past two weeks. It’s pricing out a chance of a recession,” said Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis.

The Dow Jones industrial average rose 0.37 percent, to end at 17,006.77 points. The S&P 500 gained 0.33 percent to 1,999.99, closing above its 100-day moving average for the first time this year.

The Nasdaq Composite added 0.2 percent to 4,717.02.

For the week, the Dow rose 2.2 percent, the S&P added 2.7 percent and the Nasdaq increased 2.8 percent.

Advancing issues outnumbered decliners on the NYSE by 1,970 to 1,064. On the Nasdaq, 1,678 issues rose and 1,140 fell.

The S&P 500 index showed 17 new 52-week highs and one new low, while the Nasdaq recorded 34 new highs and 29 lows.

Volume hit 10.3 billion shares, above the daily average of 8.7 billion in the past 20 sessions.

To Read The Full Story

Are you already a subscriber?
Click to log in!

Hamodia Logo