U.S. stocks rose a fifth week, giving the Standard & Poor’s 500 Index (SPX) its longest rally this year, as investors speculated weaker jobs growth will prevent the Federal Reserve from raising rates sooner than anticipated.
European shares rallied for a fourth week after the region’s central bank boosted stimulus. Emerging-market equities advanced, led by Russia’s Micex Index, after Ukraine and rebels agreed to a cease-fire.
Producers of consumer products led U.S. stocks higher, while energy shares sank as oil tumbled for the sixth time in seven weeks.
Apple Inc. (AAPL) dropped the most since February after a competitor introduced new smartphones. The S&P 500 rose 0.2 percent to a record 2,007.71, reversing losses on the final day after three straight declines.
The Dow Jones Industrial Average (INDU) added 38.91 points, or 0.2 percent, to 17,137.36, ending the week less than one point from an all-time high. U.S. markets were closed on Sept. 1 for the Labor Day holiday.
“We’re still at a time when bad news is good news for the market as far as equities are concerned,” Lou Shaduk, managing director of equity trading at Stifel Nicolaus & Co. in Baltimore, said in an interview. “It still keeps the Fed in the game -- they’re not going to pull QE sooner than anticipated.”
The S&P 500 had rallied 3.8 percent in August to breach the 2,000 level for the first time on speculation that the Fed will keep interest rates low even as the economy shows signs of picking up.
Jobs Data
Bets on continued Fed support got a boost during the final session as data showed the economy added 142,000 jobs in August and the unemployment rate fell to 6.1 percent.
The hiring data was weaker than estimated by economists in a Bloomberg survey and underpinned Chair Janet Yellen’s view that “underutilization of labor resources still remains significant.”
The Fed is gauging the strength of the labor market as it winds down a bond-buying program and considers the timing of raising interest rates.
Policy officials next meet Sept. 16-17. While the Fed is trimming its bond-buying program known as quantitative easing, the European Central Bank unexpectedly lowered its key interest rates this week and announced an asset-buying plan.
The Stoxx Europe 600 added 1.6 percent for a fourth week of advances, the best streak since June. Germany’s DAX Index (DAX) jumped 2.9 percent, the most since March, while France’s CAC 40 Index rose 2.4 percent.
Cease-Fire
Asian equities climbed, with the MSCI Asia-Pacific Index (MXAP) adding 0.4 percent in the week. The Shanghai Composite Index surged 4.9 percent, the biggest gain in 19 months, amid speculation the government is accelerating measures to support the economy. Japan’s Topix gained 1.2 percent.
The U.S. equity gauge also got a boost after Ukraine agreed on a cease-fire with pro-Russian separatists to stem months of bloodshed even as European officials met to consider more penalties on Russia for its role in the conflict.
The Micex surged 5.3 percent in the week. The S&P 500 slipped 0.3 percent in the first three days of the week for its longest losing streak since June. Oil weighed on energy shares and Apple, the biggest member of the equities benchmark, had its worst day in eight months to overshadow data showing manufacturing expanded at the fastest pace in three years.
Volatility Gauge
The Chicago Board Options Exchange Volatility Index (VIX), a gauge of investor concern derived from options prices, climbed 0.9 percent to 12.09 for a second week of gains. The index plummeted 29 percent in August, the biggest monthly drop since October 2011.
Eight of the 10 main S&P 500 groups advanced in the week, with producers of consumer staples and utilities rising 0.8 percent to pace gains. Walgreen Co. jumped 5.7 percent after the drugstore chain reported sales in its latest fiscal quarter that topped estimates.PVH Corp. surged 9.7 percent.
The owner of the Calvin Klein clothing brand posted profit that topped estimates. Staples Inc. added 10 percent for its best week since 2008. The world’s largest office-supply chain was raised to outperform from neutral at Credit Suisse.
Newfield Exploration Co. lost 6.4 percent and Nabors Industries Ltd. slid 7 percent as energy producers sank 1.6 percent as a group. Futures contracts on West Texas Intermediate crude fell 2.8 percent in the week and are down 5.2 percent this year.
Apple Slide
Apple declined 3.4 percent, for its worst week since February. Samsung Electronics Co. introduced new smartphones and Apple faced criticism following the theft of celebrity photos, which threatened to overshadow its own product-announcement event on Sept. 9.
The company is set to unveil new iPhones, a wearable device and a mobile-payments system, people with knowledge of the matter have said.
Home Depot Inc. dropped 2 percent after four straight weeks of gains. The largest U.S. home-improvement retailer said it’s investigating a suspected hacker attack following a report by KrebsOnSecurity that a “massive” batch of stolen credit-and debit-card information was posted for sale online.
bloomberg.com
European shares rallied for a fourth week after the region’s central bank boosted stimulus. Emerging-market equities advanced, led by Russia’s Micex Index, after Ukraine and rebels agreed to a cease-fire.
Producers of consumer products led U.S. stocks higher, while energy shares sank as oil tumbled for the sixth time in seven weeks.
Apple Inc. (AAPL) dropped the most since February after a competitor introduced new smartphones. The S&P 500 rose 0.2 percent to a record 2,007.71, reversing losses on the final day after three straight declines.
The Dow Jones Industrial Average (INDU) added 38.91 points, or 0.2 percent, to 17,137.36, ending the week less than one point from an all-time high. U.S. markets were closed on Sept. 1 for the Labor Day holiday.
“We’re still at a time when bad news is good news for the market as far as equities are concerned,” Lou Shaduk, managing director of equity trading at Stifel Nicolaus & Co. in Baltimore, said in an interview. “It still keeps the Fed in the game -- they’re not going to pull QE sooner than anticipated.”
The S&P 500 had rallied 3.8 percent in August to breach the 2,000 level for the first time on speculation that the Fed will keep interest rates low even as the economy shows signs of picking up.
Jobs Data
Bets on continued Fed support got a boost during the final session as data showed the economy added 142,000 jobs in August and the unemployment rate fell to 6.1 percent.
The hiring data was weaker than estimated by economists in a Bloomberg survey and underpinned Chair Janet Yellen’s view that “underutilization of labor resources still remains significant.”
The Fed is gauging the strength of the labor market as it winds down a bond-buying program and considers the timing of raising interest rates.
Policy officials next meet Sept. 16-17. While the Fed is trimming its bond-buying program known as quantitative easing, the European Central Bank unexpectedly lowered its key interest rates this week and announced an asset-buying plan.
The Stoxx Europe 600 added 1.6 percent for a fourth week of advances, the best streak since June. Germany’s DAX Index (DAX) jumped 2.9 percent, the most since March, while France’s CAC 40 Index rose 2.4 percent.
Cease-Fire
Asian equities climbed, with the MSCI Asia-Pacific Index (MXAP) adding 0.4 percent in the week. The Shanghai Composite Index surged 4.9 percent, the biggest gain in 19 months, amid speculation the government is accelerating measures to support the economy. Japan’s Topix gained 1.2 percent.
The U.S. equity gauge also got a boost after Ukraine agreed on a cease-fire with pro-Russian separatists to stem months of bloodshed even as European officials met to consider more penalties on Russia for its role in the conflict.
The Micex surged 5.3 percent in the week. The S&P 500 slipped 0.3 percent in the first three days of the week for its longest losing streak since June. Oil weighed on energy shares and Apple, the biggest member of the equities benchmark, had its worst day in eight months to overshadow data showing manufacturing expanded at the fastest pace in three years.
Volatility Gauge
The Chicago Board Options Exchange Volatility Index (VIX), a gauge of investor concern derived from options prices, climbed 0.9 percent to 12.09 for a second week of gains. The index plummeted 29 percent in August, the biggest monthly drop since October 2011.
Eight of the 10 main S&P 500 groups advanced in the week, with producers of consumer staples and utilities rising 0.8 percent to pace gains. Walgreen Co. jumped 5.7 percent after the drugstore chain reported sales in its latest fiscal quarter that topped estimates.PVH Corp. surged 9.7 percent.
The owner of the Calvin Klein clothing brand posted profit that topped estimates. Staples Inc. added 10 percent for its best week since 2008. The world’s largest office-supply chain was raised to outperform from neutral at Credit Suisse.
Newfield Exploration Co. lost 6.4 percent and Nabors Industries Ltd. slid 7 percent as energy producers sank 1.6 percent as a group. Futures contracts on West Texas Intermediate crude fell 2.8 percent in the week and are down 5.2 percent this year.
Apple Slide
Apple declined 3.4 percent, for its worst week since February. Samsung Electronics Co. introduced new smartphones and Apple faced criticism following the theft of celebrity photos, which threatened to overshadow its own product-announcement event on Sept. 9.
The company is set to unveil new iPhones, a wearable device and a mobile-payments system, people with knowledge of the matter have said.
Home Depot Inc. dropped 2 percent after four straight weeks of gains. The largest U.S. home-improvement retailer said it’s investigating a suspected hacker attack following a report by KrebsOnSecurity that a “massive” batch of stolen credit-and debit-card information was posted for sale online.
bloomberg.com
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