After failing to sustain an early upward move, stocks have wavered over the course of the trading day on Friday. The markets are seeing modest strength in mid-day trading, however, extending the recent move to the upside.
The major averages are currently posting modest gains but are well off their best levels of the day. The Dow is up 51.18 points or 0.4 percent at 14,380.67, the Nasdaq is up 7.77 points or 0.2 percent at 3,239.86 and the S&P 500 is up 4.28 points or 0.3 percent at 1,548.54.
The initial strength on Wall Street came on the heels of the release of a report from the Labor Department showing stronger than expected job growth in the month of February.
The Labor Department said non-farm payroll employment rose by 236,000 jobs in February compared to economist estimates for an increase of about 171,000 jobs.
With the continued job growth, the unemployment rate dipped to 7.7 percent in February from 7.9 percent in January, falling to its lowest level since December of 2008.
However, buying interest waned not long after the open, as traders seemed somewhat reluctant to continue buying stocks following the recent strength in the markets.
While some traders looked to cash in on the early strength, optimism about the economic outlook helped to limit the pullback and inspire the subsequent recovery.
Upbeat economic data from overseas has added to the positive sentiment, with a report from Japan’s Cabinet Office showing that the Japanese economy stabilized in the fourth quarter after seeing modest contractions in the two previous quarters.
A separate report from the Chinese General Administration of Customs showed an unexpected Chinese trade surplus in the month of February.
Sector News
Health insurance stocks have shown a strong move to the upside over the course of the trading day, driving the Morgan Stanley Healthcare Payor Index up by 1.4 percent. The gain extends a recent upward move by the index, which has climbed well off Monday’s one-month closing low.
Centene (CNC) has helped to lead the health insurance sector higher, advancing by 2.8 percent to its best intraday level in eleven months.
Significant strength is also visible among airline stocks, as reflected by the 1.2 percent gain being posted by the NYSE Arca Airline Index. With the gain, the index has risen to a nearly six-year high.
Railroad, chemical, and healthcare provider stocks are also seeing some strength on the day, although buying interest is relatively subdued.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan’s Nikkei 225 Index surged up by 2.6 percent, while Hong Kong’s Hang Seng Index jumped by 1.4 percent.
The major European markets also moved to the upside on the day. While the French CAC 40 Index advanced by 1.2 percent, the U.K.’s FTSE 100 Index and the German DAX Index rose by 0.7 percent and 0.6 percent, respectively.
In the bond market, treasuries have moved sharply lower following the better than expected jobs report. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 7.2 basis points at 2.063 percent.
by RTT Staff Writer
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