The S&P 500 climbed by 0.45% and the Dow reached another all-time high as it rose 0.47%. February nonfarm payrolls rose by 236,000, well ahead of the consensus expectation of 165,000. There was an increase of 245,000 in private jobs and a 10,000 decrease in public jobs. The rise was broad-based with the 48,000 increase in construction employment standing out. The unemployment rate fell to 7.7% from a prior reading of 7.9%.
The market responded favorably to the jobs data before moving back to the flat line in mid-morning trading. When the market started to advance the rise was led by cyclical sectors. Consumer discretionary, industrial and materials stocks were winners today. After breaking out to new highs ahead of the broader market the transportation sector suffered a selloff yesterday. The transports roared ahead today posting a gain of 1%. Airlines continued to move higher in the final day of trading of the week.
Late cyclical names like Honeywell and Dover were outperformers in the industrial space. Capital equipment names moved higher on stronger than expected Chinese export data released last night. Agricultural equipment and engine makers also outpaced the market.
Materials were up today on the strength of steels, precious metal and chemicals. Although gold and silver were off today precious metals stocks continued to try to find a bottom and many moved higher.
The media sector was strong today as every major media name outperformed the market. CBS and News Corp were very strong. Disney opened higher and gained strength all day to close at a fresh 52-week high.
Energy closed in line with the broad market averages. Crude traded slightly lower and natural gas rose by 1.0%. Coal stocks were the best performers in the group. Refiners have been a particular area of strength for several months but trailed the market for the week. Refiners gained their footing today with Tesoro being a particular standout.
Source: PFS Group
