Banks, lenders and other financial companies rose as jobs data drove up odds of higher interest rates and investors awaited earnings data. Average hourly earnings rose 12 cents, or 0.45%, from a month earlier. Wages were 2.9% higher from a year earlier. While some economists said that could have reflected low-wage workers in Houston and Florida temporarily dropping out of the work force, it likely spurred expectations of higher interest rates. "Certainly, the market has really glommed onto the pickup in wage growth," said Michael Arone, chief investment strategist at State Street Global Advisors' US SPDR Business. "The Fed has been comfortable with the labor market for a long time. What they've been uncomfortable with is this idea that at this level of unemployment rate that we didn't see a follow-through on wage growth. That's what they'd been waiting for." Federal Reserve Bank of New York President William Dudley said he expects the U.S. central bank to press forward with rate rises amid his expectations the economy will continue with solid growth. Big banks led by JPMorgan Chase will report earnings next week. "Even though no one expects the banks are going to have a blow-out third quarter because volatility was low...what the market is looking for is their guidance," said Quincy Krosby, chief market strategist at Prudential Financial.
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(END) Dow Jones Newswires
October 06, 2017 16:30 ET (20:30 GMT)