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US STOCKS-S&P 500, Nasdaq hit record highs on U.S. jobs report, China data

Published 01/11/2019, 18:03
Updated 01/11/2019, 18:09
© Reuters.  US STOCKS-S&P 500, Nasdaq hit record highs on U.S. jobs report, China data
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* U.S. jobs growth in Oct. slows less than expected

* Qorvo jumps on $1 bln share buyback, rosy forecast

* Exxon rises after profit beat

* Pinterest slumps as revenue misses estimates

* Indexes up: Dow 0.95%, S&P 0.75%, Nasdaq 0.74%

(Updates to early afternoon)

By Arjun Panchadar

Nov 1 (Reuters) - Wall Street's main indexes climbed on

Friday, as concerns over global growth were allayed by largely

upbeat U.S. jobs report and data out of China that showed

factory activity expanded at its fastest pace in more than two

years.

The tech-heavy Nasdaq .IXIC hit a record high for the

first time since July, while the benchmark S&P 500 .SPX

notched its fourth record high this week.

Both the indexes logged their best month in four in October

after an upbeat start to the third-quarter earnings season and a

largely positive U.S.-China trade rhetoric.

Eight of the 11 major S&P 500 sectors were trading higher on

Friday, with the industrials sector .SPLRCI providing the

biggest boost.

The small-cap Russell 2000 .RUT rose 1.5% to hit its

highest level in one and a half months.

U.S. job growth slowed less than expected in October, a

Labor Department report showed, overshadowing data showing a

contraction in the manufacturing sector for the third straight

month. "Investors are back in the glass-is-half-full mode," said

Michael Geraghty, equity strategist at Cornerstone Capital

Group. "(They) are looking past the ISM and focusing more on the

better than expected labor report this morning."

Earlier in the day, 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. On the trade front, U.S. Commerce Secretary Wilbur Ross said

the initial "phase one" trade pact with China appears to be in

good shape and is likely to be signed around mid-November,

although a finite date is still in question. At 12:41 p.m. ET the Dow Jones Industrial Average .DJI was

up 256.53 points, or 0.95%, at 27,302.76, the S&P 500 .SPX was

up 22.66 points, or 0.75%, at 3,060.22 and the Nasdaq Composite

.IXIC was up 61.74 points, or 0.74%, at 8,354.10.

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.

Among stocks, oil major Exxon Mobil Corp XOM.N rose 2%

after it beat recently lowered third-quarter profit

expectations. The energy sector .SPNY gained more than 1.89%, rising the

most among S&P sectors.

Qorvo Inc QRVO.O jumped 18.2% after the Apple supplier

announced a $1 billion share buyback plan and forecast

third-quarter revenue above expectations. Pinterest Inc PINS.N tumbled 17.8% after the online

scrapbook company missed quarterly revenue

estimates. Arista Networks Inc ANET.N slumped 23.5% after the cloud

infrastructure supplier forecast current-quarter revenue much

below Wall Street expectations.

Advancing issues outnumbered decliners by a 2.58-to-1 ratio

on the NYSE and a 3.00-to-1 ratio on the Nasdaq.

The S&P index recorded 37 new 52-week highs and two new

lows, while the Nasdaq recorded 82 new highs and 28 new lows.

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