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BUSINESS Saturday 9 december 2017
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S&P 500 returns to record following strong US jobs report

By STAN CHOE not been getting much big-
AP Business Writer ger, and hourly wages rose
NEW YORK (AP) — Stocks less last month than econo-
rose Friday following a bet- mists expected. Higher pay
ter-than-expected U.S. jobs would help workers spend
report, and the strong fin- more, but it could also lead
ish pushed the Standard & to higher inflation.
Poor’s 500 index to its third “The way risk markets are
straight weekly gain de- looking at it is it’s very much
spite some weakness ear- a Goldilocks environment:
lier in the week. still muted or low inflation
The gains were wide- and very positive growth,”
spread, and telecom and said Erin Browne, head of
health care stocks helped asset allocation at UBS As-
lead the way. Overseas set Management.
markets were also high- She said that one area
er after negotiators hit a where wages seemed to
breakthrough in the United be improving more was in
Kingdom’s efforts to leave the manufacturing industry.
the European Union. It’s an indication that com-
The S&P 500 rose 14.52 panies are spending more
points, or 0.6 percent, to on equipment and other
finish at 2,651.50, another things to grow, an encour-
record. The Dow Jones in- aging sign that economists Trader Edward Curran works on the floor of the New York Stock Exchange. Stocks rose Friday
dustrial average gained had been waiting years to following a better-than-expected U.S. jobs report.
117.68, or 0.5 percent, to see.The jobs report is the (AP Photo/Richard Drew)
24,329.16, and the Nasdaq last major piece of eco- Alexion Pharmaceuticals bled recently as investors shutdown this weekend.
composite rose 27.24, or 0.4 nomic data before the jumped $7.68, or 7.2 per- moved out of tech stocks The deal keeps the gov-
percent, to 6,840.08. Federal Reserve meets next cent, to $114.46 for the and into companies seen ernment running only until
The U.S. jobs report, which is week to discuss interest rate biggest gain in the S&P as benefiting more from Dec. 22, though, when an-
the economic highlight of policy. Most economists ex- 500 following a report from Washington’s push to over- other deadline looms.
each month, showed that pect it to approve the third The New York Times that haul the tax code, such as Stock markets in Europe
employers added 228,000 increase in short-term rates an activist hedge fund has financial companies and climbed after negotia-
jobs last month and the un- for the year. bought shares in the com- retailers. The pullback was tors reached a key agree-
employment rate remained Biotechnology stocks pany and pushed it to do short-lived, and tech stocks ment that allows talks to
at a low 4.1 percent. It’s the helped lead the market, more to lift its stock price. erased their losses for the continue to the next stage
latest evidence that the and health care stocks in Technology stocks in the week. Another potential for the United Kingdom to
U.S. economy continues to the S&P 500 rose 1.1 per- S&P 500 rose 0.4 percent. source of worry for investors leave the European Union.
improve, in sync with the cent for one of the biggest The industry has been the dissipated after Congress Investors are hoping for a
rest of the world. gains of the 11 sectors that market’s biggest winner passed a spending bill that smooth exit that does not
Paychecks, though, have make up the index. this year, but it had stum- will prevent a government disrupt global trade. q

A stronger global economy is helping boost the US job market

By CHRIS RUGABER In November, U.S. employ- eration and Development,
AP Economics Writer ers added a substantial a Paris-based think tank. It
WASHINGTON (AP) — The 228,000 jobs, the Labor De- should fare slightly better in
U.S. job market is benefit- partment said Friday. 2018, the OECD says.
ing from an unlikely source: It was the 86th straight Stronger economies over-
Other countries. month of gains, the longest seas have helped boost
The global economy is on record, and a sign of profits at U.S. multinational
showing renewed strength, the job market’s enduring corporations, a key reason
with Europe, Japan and strength in the economy’s why the Standard & Poor’s
many developing nations ninth year of expansion. 500 stock index has climbed
growing in tandem for the The unemployment rate 18 percent this year.
first time in a decade. The held at 4.1 percent, a 17- U.S. companies in the S&P
brightening international year low. index derive about half
picture is encouraging Friday’s jobs report coincid- their revenue from abroad.
more hiring in the United ed with other signs that the Exports contributed 0.43
States — even among U.S. economy remains on A recruiter from a driller in the shale gas industry, left, speaks percentage point to eco-
manufacturers, which have firm footing. In the past six with an attendee at a job fair in Cheswick, Pa. On Friday, Dec. nomic growth in the July-
been hurt in the past by months, economic growth 8, 2017, the U.S. government issued the November jobs report. September quarter, the
global competition. has exceeded an annual (AP Photo/Keith Srakocic) most in nearly four years.
“We’re seeing demand rate of 3 percent, the first est pace in a decade, and developing economies as Factories are making more
coming from where we time that’s happened since its unemployment rate has China and India are grow- goods for overseas mar-
haven’t seen it in a long, 2014. reached its lowest level in ing steadily. kets, including agricultural
long time,” said Scott An- Consumer confidence has nearly nine years. Japan’s The overall global econo- and mining equipment.
derson, chief economist at reached its highest level economy expanded in the my is expanding at its fast- Exports of aircraft engines
Bank of the West. “We’re since 2000. fall for the seventh straight est pace in seven years, are up 13 percent, over-
riding the wave of that Europe’s economy is quarter, its longest period according to the Organiza- seas shipments of semicon-
added global growth.” poised to grow at the fast- of growth since 2001. Such tion for Economic Co-Op- ductors up 8 percent.q