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US STOCKS-Jobs data, trade progress boost S&P, Nasdaq to records

Published 01/11/2019, 19:27
Updated 01/11/2019, 19:45
© Reuters.  US STOCKS-Jobs data, trade progress boost S&P, Nasdaq to records
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* U.S. jobs growth in October slows less than expected

* Exxon rises after profit beat

* Dow up 0.92%, S&P 500 up 0.81%, Nasdaq up 0.88%

(Updates to mid-afternoon, changes byline)

By Chuck Mikolajczak

NEW YORK, Nov 1 (Reuters) - U.S. stocks climbed on Friday as

the S&P hit an intraday record for the fourth time this week

after an upbeat U.S. jobs report and data on Chinese

manufacturing lessened concerns about slowing global growth.

Job growth slowed less than forecast in October, as a drag

from a strike at General Motors GM.N was made up for in other

areas of the labor market, while job gains in the prior two

months were stronger than previously thought. "It's really good. The market should like it because

obviously with the GM strike, manufacturing being affected by

that, it is a very nice report and one people should be pretty

excited about overall," said JJ Kinahan, chief market strategist

at TD Ameritrade in Chicago.

The strong jobs number helped overshadow a report that

showed the manufacturing sector contracted for a third straight

month. Along with the S&P's new high, the Nasdaq topped its July

intraday record after both indexes closed out October with their

best monthly performance since June as quarterly earnings have

come in stronger than anticipated and U.S.-China trade rhetoric

has appeared productive.

Prior to the jobs report, sentiment was supported by data

showing China manufacturing activity unexpectedly expanded in

October, easing concerns about a slowdown in demand from the

world's second-largest economy as a result of U.S. tariffs.

The Dow Jones Industrial Average .DJI rose 250.48 points,

or 0.93%, to 27,296.71, the S&P 500 .SPX gained 24.68 points,

or 0.81%, to 3,062.24 and the Nasdaq Composite .IXIC added

73.29 points, or 0.88%, to 8,365.65.

U.S.-China trade news remained supportive for stocks, as

Beijing's state-media Xinhua News Agency reported the two

countries have "reached consensus on principles." Earlier, U.S.

Commerce Secretary Wilbur Ross said the "phase one" trade pact

with China appeared in good shape. About 76% of the 356 S&P 500 companies that have reported so

far have beaten profit estimates, according to Refinitiv data.

However, profit growth forecasts for the next four quarters

have been revised lower, even as expectations for a decline in

third-quarter earnings have shrunk to 0.8% from 2.2% at the

start of October.

Oil major Exxon Mobil Corp XOM.N rose 2.70% after it beat

recently lowered third-quarter profit expectations. The energy

sector .SPNY gained 2.29% as the best-performing S&P sector,

and oil prices jumped on trade deal progress.

Qorvo Inc QRVO.O jumped 19.71% after the Apple supplier

announced a $1 billion share buy-back plan and forecast

third-quarter revenue above expectations. But Pinterest Inc PINS.N plunged 16.39% after the online

scrapbook company missed quarterly revenue

estimates. Arista Networks Inc ANET.N slumped 24.80% after the cloud

infrastructure supplier forecast current-quarter revenue much

below Wall Street expectations.

Advancing issues outnumbered declining ones on the NYSE by a

2.53-to-1 ratio; on Nasdaq, a 3.00-to-1 ratio favored advancers.

The S&P 500 posted 41 new 52-week highs and 2 new lows; the

Nasdaq Composite recorded 99 new highs and 31 new lows.

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