FOX Business: Capitalism Lives Here
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U.S. markets rallied Friday, with the Dow closing at an all-time high and landing in the green for a fifth-straight week, as traders cheered an upbeat jobs report.
The Dow Jones Industrial Average rose 168 points, or 1.1%, to 15762, the S&P 500 advanced 23.5 points, or 1.3%, to 1771 and the Nasdaq Composite climbed 61.9 points, or 1.6%, to 3919.
The Labor Department said the American economy added 204,000 jobs in October, widely beating estimates of an increase of 125,000. The unemployment rate rose by 0.1 percentage point to 7.3%, matching forecasts. The labor force participation rate – a measure of the proportion of the population employed or seeking employment – dropped to 62.8%, the lowest level since March 1978.
A report from the Commerce Department showed U.S. consumer spending ticked up by 0.2% in September, matching expectations. Meanwhile, personal income climbed 0.5%, topping estimates of a 0.3% advance.
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Separately, analysts at Goldman Sachs (GS) said they expect the U.S. economy to grow at an annual pace of 1.5% in the fourth quarter, down from a previous assumption of 2%, as the impact of the shutdown weighs.
The data have come under additional scrutiny recently as traders try to determine when the Federal Reserve will begin paring back its vast bond-buying program.
At the same time, traders will get another report on consumer income and spending. At 9:55 a.m. ET, the markets will get a look at consumer sentiment. Both gauges are important as the key holiday-shopping season kicks off.
On the European front, Standard & Poor's chopped down France's credit rating from "AA+" to "AA." The ratings company cited weak economic growth and what it called "fiscal constraints." The move sent the country's CAC 40 index tumbling more than 1%.
Germany's exports, meanwhile, surged 3.6% on a year-to-year basis, with the economic giant's trade surplus hitting a record high.
In corporate news, Disney (DIS) posted fiscal fourth quarter earnings that topped Wall Street's expectations.
Elsewhere, U.S. crude oil futures rose 13 cents, or 0.14%, to $94.33 a barrel. Wholesale New York Harbor gasoline edged up by 0.4% to $2.513 a gallon. Gold was little changed at $1,308 a troy ounce.