Wall Street finished above 8,000 points Friday, closing out the market’s best four-week run since 1933. Financials and tech stocks led the rally as investors shrugged off news of continued labour market weakness.
Figures released by the Labor Department showed unemployment rose to 8.5% in March, its highest level since 1983. 663,000 jobs were lost in the month, up from 651,000 in February. The figure was worse than many analysts had predicted.
There was also worse than expected news from the Institute for Supply Management. Its services sector index fell to 40.8 in March from 41.6 in the previous month. Economists thought it would rise to 42.
Looking to the week ahead, the focus will shift away from Washington and back to Wall Street as companies start releasing quarterly earnings. Alcoa is slated to start proceedings on Tuesday with major retailers set to release their results on Thursday.
The Dow Jones gained 39.51, or 0.50%, to 8,017.59, while the broader S&P 500 rose 8.12, or 0.97%, to 842.50. The tech-heavy NASDAQ climbed 19.24 points, or 1.20%, to 1,621.87.
Banks were higher with Citigroup, Wells Fargo and Bank of America adding 4%, 6.6% and 5% respectively.
Morgan Stanley was up 4.1%, while Goldman Sachs was 4.5% dearer.
Tech stocks also rallied, led by Blackberry maker Research in Motion, which released better than expected results and outlook last week. Its stocks soared 20.8% Friday, and 32% for the week.
Google and Yahoo! climbed 2% and 3%, while Apple posted a 2.9% gain.
Microsoft bucked the trend, falling 2.8%.
Automakers General Motors and Ford climbed 0.5% and 11.7% respectively.
Among the retailers, Wal-Mart added 0.3%. Macy’s and Saks put on 1.8% and 8.8% respectively.
Drugmakers were lower as investors moved away from defensive stocks. Pfizer and Johnson & Johnson both closed 1.6% lower, while Merck eased 2%.
NYMEX light crude oil for May delivery slid 0.3% to settle at $52.51 a barrel.
Exxon Mobil and Chevron eked out 0.2% and 0.3% gains, while ConocoPhillips put on 2.2%.
COMEX gold for June delivery fell $11.60 to settle at $897.30 an ounce.
European markets
European stocks were mostly lower on Friday as poor US jobs data dented investor confidence. Energy stocks and pharmaceuticals were down, while carmakers capped losses.
The UK benchmark FTSE 100 fell 95.30, or 2.31% to 4,029.67. France’s CAC40 closed down 33.32, or 1.11% to 2,958.74, while the German DAX bucked the trend eking out a 3.07, or 0.07% gain to close at 4,384.99.
Banks were mixed with HSBC 5.3% cheaper, while Barclays and Lloyds were up 1.2% and 5.3% respectively.
On the continent, Deutsche Bank sank 1.8%, while Commerzbank added 5%. BNP Paribas closed 1.7% lower, while rival Societe Generale jumped 5.7%.
Carmakers were up, led by Peugeot, Renault and Daimler whose shares climbed 6.4%, 11.5% and 5.9% respectively. Volkswagen bucked the trend to fall 2.7%.
Energy stocks tracked lower as crude futures fell. Royal Dutch Shell and BP dropped 3.2% and 2.8%, while the UK’s Tullow Oil sank 1.4%.
Pharmeceuticals were the biggest losers, led by Novo Nordisk, which plunged 13.7% after a key diabetes drug failed to get endorsed by a US advisory panel.
Roche, GlaxoSmithKline and Bayer were down 4.6%, 2.4% and 0.9% respectively.
Other defensive stocks were also lower with British American Tobacco falling 3.8%.
Japanese Market
Japanese stocks edged marginally higher on Friday. Investors reacted positively to prospects of an earlier than expected US economic recovery, while exporters were buoyed as the yen hit five-month lows.
The Nikkei 225 rose 30.06, or 0.34% to 8,749.84.
The weaker yen favoured carmakers. Toyota and Nissan rose 7.3% and 5.9% respectively. Honda added 1.7%.
Consumer electronics fared well with Panasonic climbing 6.1%. Sony and Canon jumped 3.2% and 2% respectively.
The shippers were also up. Kawasaki Kisen put on 9.7% as Goldman Sachs raised its rating. Mitsui O.S.K. Lines added 4.7%.
Hong Kong Market
The Hang Seng climbed to three month highs in Friday’s trade. Commodities and shippers were the main beneficiaries as greater demand from China saw their stocks rise.
The Hang Seng added 23.72, or 0.16%, to 14,545.69.
China Shipping Container Lines jumped 11.3% on a broker upgrade, while rival shipper Orient Overseas added 12.4%.
Chinese coal miner China Shenhua added 4.4%, while Angang Steel put on 5.1%.
On the downside, gold miner Zijin Mining plunged 6% as investors sold off the precious metal on the prospect of the IMF gold sales.
Oil producers were stronger with heavyweights CNOOC and PetroChina climbing 1.2% and 1.1% respectively.
