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Market Update

U.S. Employment Data Lifts Market Sentiment, Jobless Rate at 5.8%

Author: Nichole Harper
Last Update: 2:34 AM ET December 05 2014

3:30 PM New York – Market indexes on Wall Street trimmed gains and investors took an optimistic view of the latest monthly jobs data. Employers at all levels added 321,000 jobs and jobless, the most since June 2012 and jobless rate held at 5.8%. U.S. trade deficit also narrowed. S&P lowered its view on Italian government debt.

Stocks and market indexes pared gains after a steady rise since the opening and crude oil and precious metals extended losses.

Investors bid up stocks after the U.S. government data showed better than expected increase in monthly jobs data in November and trade deficit narrowed in October.

The continued fall in energy prices also depressed energy complex stocks in the U.S. and European trading. Indexes also pared gains after Standard and Poor’s lowered its view on Italian credit and cited rising government debt.

On Wall Street trading, Tollbooth Index edged down 0.01% or 0.65 to 10,016.77.

S&P 500 index rose 4.91 or 0.2% to 2,076.83 and the Nasdaq Composite Index gained 16.50 or 0.3% to 4,785.79.

New orders for manufactured goods in October dropped $3.3 billion or 0.7% to $496.6 billion, followed by 0.5% decrease in September, Department of Commerce said today.

In a separate report, the department said trade deficit in October narrowed to $43.4 billion from the revised $43.6 billion in September.

U.S. non-farm payroll employment in November increased 321,000 beating the estimates of 240,000 increase set my many economist in New York. The monthly jobs increase was the best since January 2012.

The increase in November was larger than the gain of 243,000 in October, Labor Department report showed today in Washington.

In a separate report the department said the November unemployment rate held at 5.8% from October and average hourly earnings increased 0.4%, the largest increase since June of last year.

U.S. Movers

Big Lots, Inc (BIG), the discount store operator said net sales in the third-quarter ending on November 1 edged up 0.9% to $1.11 billion from a year ago period. Comparable store sales in the quarter increased 1.4%.

Net loss in the quarter narrowed to $3.44 million or 6 cents a diluted share compared to $9.52 million or 17 cents from a same quarter last year.

Ulta Salon, Cosmetics & Fragrance, Inc (ULTA), the beauty products retailer reported net sales in the third-quarter ending on November 1 climbed 20.5% to $745.7 billion from a year ago period.

Comparable store sales in the quarter soared 9.5%, E-commerce comparable sales surged 46.7% and comparable salon sales jumped 10.1%.

Net income in the quarter advanced 30.1% to $59.1 million or 91 cents a diluted share compared to $45.4 million or 70 cents from a same quarter last year.

European Markets

In London trading, FTSE 100 index increased 0.8% or 51.39 to 6,730.76 and in Frankfurt the DAX index climbed 1.8% or 166.53 to 10,017.88.

In Paris, CAC 40 index jumped 1.8% or 77.05 to 4,400.94.

In the European corporate news, Balfour Beatty rejected a £1 billion offer from John Laing Infrastructure. Berkeley Group profit surged 85% to £242 million.

Glaxo abandoned its plan to sell a portfolio of medicines. Songbird rejected £2.6 billion revised takeover proposal from Qatar Investment and Brookfield.

Balfour Beatty Plc, the U.K.-based infrastructure developer rejected a £1 billion or $1.6 billion offer from John Laing Infrastructure Fund for its public-private partnership assets as “significantly short of its own view of its value.”

GlaxoSmithKline Plc, the U.K.-based healthcare company abandoned its plan to sell its some of old medicines with lost patent protection in North America and Europe after it received considerable offers from world’s largest private equity groups.

Songbird Estates Plc, the U.K.-based property investor rejected an increased takeover proposal from Qatar Investment Authority and Brookfield Property Partners LP of £2.6 billion or $4.07 billion and said offer still undervalues the company.

Asian Markets

Japanese stocks and market indexes extended gains for the sixth day in a row and the Topix extended seven-year high. The yen dropped below 120 mark and economists and brokers held out for 125 against the U.S. dollar target.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc