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BUSINESS Saturday 2 November 2019
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Stocks head for record high following solid jobs report

By DAMIAN J. TROISE potentially steep contrac-
Associated Press tion for profits. The majority
NEW YORK (AP) — A gov- of companies in the S&P
ernment report revealing 500 have now issued their
surprisingly solid job growth latest results.
in October put investors in Companies in the index are
a buying mood Friday and now expected to report a
drove broad gains for U.S. profit slump of less than 3%
stocks in midday trading. compared with prior fore-
The Labor Department casts for a contraction of
said U.S. employers added more than 4%. That figure is
128,000 jobs, far more than likely to continue improving
the 89,500 additions that as the remaining compa-
economists expected. Job nies report, if previous quar-
growth and consumer con- ters this year are a guide.
fidence have been among STRONG JUMP: Fitbit surged
the key drivers of the U.S. 14.8% after the maker of
economy as other areas, wearable fitness technol-
particularly manufacturing, ogy agreed to be acquired
face a slowdown. for $2.1 billion by Google's
The gains on Friday mark a parent company, Alpha-
rebound from a slump on bet. Fitbit is a pioneer in the
Thursday and put the S&P industry, but it's been under
500 on a path to reach its In this Tuesday, Oct. 29, 2019, file photo specialist Gregg Maloney, left, and trader John Panin work pressure from other device
third record high this week on the floor of the New York Stock Exchange. makers.
and its fourth straight week Associated Press ENERGY RISING: Exxon Mo-
of gains. the 10-year Treasury rose to holdings. The index rose Wednesday, the Federal bil rose 2.6% after it beat
Banks and health care 1.72% from 1.69% late Thurs- 1.5%. Reserve cut interest rates Wall Street's third-quarter
companies led the market day. WEEKLY WIN: Solid earn- for the third time this year, profit forecasts despite fac-
higher. Citigroup rose 1.5% KEEPING SCORE: The S&P ings and economic reports but signaled that it plans ing a sustained slide in oil
and Bristol-Myers Squibb 500 index rose 0.7% as of injected confidence into no further cuts unless it prices. The company re-
gained 1.4%. 12:25 p.m. Eastern time. the market throughout the sees clear evidence that ported a 3% increase in oil
Rising oil prices and solid The Dow Jones Industrial week. The strong week in- the economic outlook has production along with a
earnings from Exxon Mobil Average rose 245 points, or cluded record highs on worsened. 4% rise in liquids production
helped push energy stocks 0.9%, to 27,291. The Nasdaq Monday and Wednesday, EYES ON EARNINGS: Corpo- driven by growth from its
higher. Utilities and real es- rose 0.7%. and now potentially Friday. rate earnings were a big fo- Permian Basin operations.
tate companies lagged The Russell 2000 index of The latest employment cus on Wall Street this week. OVERSEAS: Asian markets
the market as investors re- smaller company stocks figures capped a mostly So far this earnings period, mostly rose, though Japan's
gained an appetite for risk outpaced the broader positive round of economic three-quarters of the com- Nikkei 225 fell after a weak
and shifted money away market in another sign that reports that have helped panies that reported beat report on manufacturing.
from safe-play holdings. investors were confidently alleviate concerns about analyst's forecasts, which European markets also
Bonds fell and the yield on shifting money to riskier a potential recession. On helped temper fears over a rose.q

US added a solid 128,000 jobs in October despite GM strike

By JOSH BOAK and a global slowdown. The economy has been
Associated Press The solid jobs data will also expanding for more than
WASHINGTON (AP) — U.S. make it even less likely that a decade, the longest pe-
employers added a solid the Federal Reserve, which riod of growth on record.
128,000 jobs in October, cut short-term interest rates But the bump from the 2018
a figure that was held this week for a third time tax cuts are fading and
down by a now-settled this year, will do so again an aging population and
strike against General Mo- anytime soon. other demographic forces
tors that caused tens of The GM strike contributed are holding back potential
thousands of workers to to the temporary loss last growth. Surveys also sug-
be temporarily counted as month of 41,600 auto fac- gest that employers have
unemployed. The unem- tory and likely other related turned cautious in large
ployment rate ticked up jobs. But the settlement part because of height-
from 3.5% to 3.6%, still near seems sure to lead to a ened uncertainties caused
a five-decade low. And for return of those jobs in the by President Donald Trump's
a second straight month, coming months. The report In this Oct. 1, 2019, file photo Billy Ramos, right, fills out a job ap- trade conflicts. The presi-
average hourly wages rose revised upward job gains in plication with Adidas during a job fair at Dolphin Mall in Miami. dent has imposed tariffs on
a decent if less-than-robust the prior two months by a Associated Press many goods imported to
3% from a year ago. All told, combined 95,000, suggest- pare for the 2020 survey. to keep the unemployment the U.S., and other nations
the October employment ing a healthier job market Job growth so far this year rate from rising despite the have retaliated with import
report from the govern- than initially believed. has averaged just 167,000 tepid pace of economic taxes on U.S. exports. One
ment pointed to a still-stur- Another drag on hiring last a month, down from an growth. On Wednesday, result is that companies,
dy job market that remains month was the U.S. Census. average of 223,000 in 2018, the government estimated especially in manufactur-
a key source of strength for The government let go of according to Labor De- that the economy grew in ing, have slowed their hir-
a U.S. economy that's been 20,000 temporary workers partment figures. Even so, the July-October quarter at ing or have stopped hiring
weakened by trade wars who had been helping pre- hiring remains high enough a modest 1.9% annual rate. altogether.q