US stocks add to records after good jobs data

[NEW YORK]

Major US stock indices added to records early on Friday as investors weighed upbeat jobs data against concerns about a faster shift in monetary policy.

The economy added 943,000 new jobs in July, dropping the unemployment rate down half a point to 5.4 per cent, the Labor Department reported.

"It's absolutely good news, that kind of news that we needed," said Art Hogan, chief strategist at National Securities.

About 15 minutes into trading, the Dow Jones Industrial Average was up 0.5 per cent at 35,223.23.

The broad-based S&P 500 added 0.2 per cent at 4,435.63, while the tech-rich Nasdaq Composite Index declined 0.3 per cent to 14,850.39.

The gains lifted both the Dow and S&P 500 from all-time highs when the market closed Thursday.

But the negative performance of Nasdaq suggested investors were also focused on how the data could affect the Federal Reserve's plans to taper its stimulus programme.

"The key takeaway from the report is that it is apt to drive the Fed toward a decision to taper its asset purchases sooner rather than later," said Briefing.com analyst Patrick O'Hare in a note.

Among individual companies, travel website company Expedia slumped 9.0 per cent despite reporting revenues more than three times the year-ago level on higher bookings.

But the company also said recent developments on Covid-19 and the Delta variant continue "to create uncertainty in the travel industry."

AFP