By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks eked out marginal gains
amid thin volumes on Friday, but it was still enough to register
fresh record highs for two of the three main benchmarks, capping a
third straight week of gains.
The S&P 500 and Dow Jones Industrial Average closed at
record highs for the third consecutive day. However, investors'
reaction to the latest employment data, showing 214,000 new jobs
were added last month was mostly muted.
The U.S. Bureau of Labor Statistics report showed that the
economy added 214,000 jobs in October, while the unemployment rate
ticked down to 5.8% -- a broadly positive reading. Although the
headline number was below the consensus of 243,000, the upward
revisions to the previous two months more than made up for it.
The latest jobs data should offer Wall Street investors a
confidence-building, Goldilocks scenario since the data neither
points to a stalling recovery nor one that is overheating.
The S&P 500 (SPX) closed fractionally higher at a new record
level of 2,031.92 and gained 0.7% over the week. Dow industrial
(DJI) added 19.46 points, or 0.1% to 17,573.93 and ended the week
1% higher.
Meanwhile, the Nasdaq Composite (RIXF) closed 5.94 points, or
0.1%, lower at 4,632.53 and was flat over the week.
"The [jobs] report is positive. The economy is still adding more
than 200,000 jobs a month, but at the same time there is no
indication that it is overheating as the wage growth remains muted.
There is no reason for the Fed to get hawkish," said Brad Sorensen,
director of market and sector research at Schwab.
The Bureau of Labor Statistics report showed the U.S. created
214,000 jobs in October, nudging the unemployment rate down a notch
to 5.8%, as many companies added workers to gear up for the holiday
season. The economy has now added 200,000 workers or more for nine
straight months, a feat last accomplished in 1994.
Analysts greeted the report as a positive development, pointing
to revisions and other details, such labor participation:
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Fed speakers in the mix: Federal Reserve Chairwoman Janet Yellen
and her colleagues continue to prepare the market for an increase
in interest rates. In speeches in Paris on Friday, Yellen and New
York Fed President William Dudley appeared to prepare the markets
for the eventuality of rising rates. Dudley said rates likely will
be hiked next year, as many market watchers anticipate.
Healthcare stocks hit: Health insurers were hit after the news
that President Barack Obama's landmark healthcare reform is heading
back to the US Supreme Court. The Health Care Select Sector SPDR
fund fell 1%.
Humana Inc. (HUM) shares was already hit after the health
insurer posted a profit that fell short of forecasts. Shares closed
down 6.6%.
Walt Disney Co.(DIS) fell 2.2% after the company's earnings fell
slightly short of expectations, while revenue was a slight
beat.
Zynga Inc.(ZNGA) rose 3% after its third-quarter earnings met
Wall Street forecasts and sales came in slightly higher.
Sears Holdings Corp.(SHLD) soared 31% after saying it may form a
real estate investment trust involving 200 to 300 stores as it
seeks to boost its balance sheet.
King Digital Entertainment PLC(KING) rose 4% after the "Candy
Crush" creator said third-quarter results topped expectations and
announced a stock-buyback plan.
Berkshire Hathaway Inc. (BRK/A) (BRKA) reports after the close.
(Read more in Movers and Shakers
http://www.marketwatch.com/story/berkshire-hathaway-humana-ew-scripps-earnings-in-focus-2014-11-07.)
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Munger
In other markets, the dollar (USDJPY) pulled back to Yen114. Oil
(CLZ4) rose, but strategists said they don't really expect any
gains to last, and support at $77 a barrel is shaky. Europe stocks
closed lower. The Nikkei 225 index rose 0.5% to gain 2.8% for the
week.
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