US stocks continued to edge higher Friday, sending the S&P to it’s largest weekly gain in over two months. Tech stocks helped fuel the gains, while the Institute of Supply Management’s factory index boosted industrial and manufacturing stocks after climbing to three-year highs.
The market rallied despite a disappointing jobs report out Friday showing that US employers shed another 85,000 jobs in December against an expected report showing no change.
Meanwhile, for the week ahead another test of the market rally comes as reporting season gets under way. As usual, Alcoa will lead off reporting results on 11 January.
The Dow Jones added 11.33 points, or 0.11%, to 10,618.19, the S&P's 500 put on 3.29 points, or 0.29%, to 1,144.98 and the NASDAQ shed 17.12 points, or 0.74%, to 2,317.17.
Bank stocks were weaker, with many stocks in the sector dampening profit expectations.
Citigroup lost 1.6% and Bank of America shed 0.9%, although the latter added 11% for the week.
Among the investment banks Goldman Sachs fell 1.9%, while Morgan Stanley and JPMorgan were down 2% and 0.3% respectively.
General Electric, which has a large finance division, climbed 2.2% and around 10% for the week.
Tech stocks climbed as the Consumer Electronic Show in California showcased the latest in hi-tech gadgets.
Microsoft and Apple both put on 0.7%, while rival Google added 1.3% to trade above US$600 per share.
Among the retailers Wal-Mart lost 0.5% and Macy’s tumbled 3.3%. This came despite sales in US stores open more than a year climbing 3% in December, the biggest monthly gain in over 18 months.
Amazon.com rallied 2.7%.
NYMEX light crude oil for February delivery rose US9c to settle at US$82.75 a barrel.
Exxon Mobil fell 0.4%, while ConocoPhillips added 0.9%.
COMEX gold for February delivery rose US$5.20 to US$1,138.90 an ounce.
European Markets
European stocks made modest gains Friday as investors wavered between general optimism over the economy and the sobering US jobs report.
The UK benchmark FTSE 100 climbed 7.52 points, or 0.14% to 5,534.24. The French CAC40 put on 20.34, or 0.51% to 4,045.14, while Germany’s DAX rose 18.25, or 0.30% to 6,037.61.
A positive report from UBS sent financial stocks higher.
In the UK, Barclays added 1.6% after UBS upgraded the stock to buy.
Deutsche Bank jumped 3.6%, while French-based BNP Paribas put on 2.4%.
The miners also gained on broker upgrades, defying weakness from the base metal prices on the LME.
ENRC jumped 5.2% on a broker upgrade. Xstrata rallied 2.3%.
Aussie heavyweight BHP Billiton added 1.2%, while Rio Tinto was flat.
Investors shied away from the traditionally defensive pharmaceutical companies such as GlaxoSmithKline. German giants Merck and Bayer were off 1% and 0.9% lower respectively.
Japanese Markets
The Japanese market made ground Friday. The exporters led the way higher as the yen weakened for a market that is very sensitive to currency fluctuations in a highly export-focused economy.
The Nikkei 225 added 116.66, or 1.09% to 10,798.32.
Among the banks, Mitsubishi UFJ climbed 0.4% and Sumitomo Mitsui Financial Group shed 0.7%.
Automakers benefited from the weakening yen with Toyota climbing 2.9%. However the world’s largest carmaker was outdone by smaller rivals Isuzu and Mazda, which added 9.1% and 7.4% respectively.
Sony and Toshiba advanced 2.4% and 3.5% respectively.
Japan Airlines slumped 12% as the Japanese finance minister refused to rule out bankruptcy for the airline.
Supermarket chain Aeon surged 6.5% after narrowing its loss.
Commodities and energy stocks were the achilles heel for the market with the country’s largest oil producer Inpex down 2.2% and Sumitomo Metal Mining 1.3% cheaper.
Hong Kong Markets
Hong Kong shares closed higher after falling below the line in early trade. Telco’s led gains on a busy news day for the sector.
The Hang Seng added 27.30, or 0.12% to 22,296.75.
Hutchison Telecom spiked 28.5% as its shares resumed trade after being suspended Monday. The company’s parent Hutchison Whampoa announced it would pay US$545 million to take the company private. Hutchison Whampoa shares were flat.
China Mobile put on 1.6% after firing its vice chairman over alleged indiscretions, while China Telecom rallied 3% following a bullish rating on the stock from Macquarie.
Clothing supplier Li & Fung gained 1.8% on the back of better than expected US monthly retail sales figures.
Port operator Cosco Pacific jumped 4.5% on reports it will be raising service fees due to an expected recovery in domestic trade.
Henderson Land advanced 2% and News World Development dipped 0.3% after the two companies agreed to pay a land premium for converting an agricultural site to residential use.
Profit taking sent Foxconn International shares 4% lower after the mobile phone maker witnessed a 31% climb in just over a week.
