Dow briefly tops 29,000 milestone as stocks extend push into record territory

The Dow Jones Industrial Average extended a small gain Friday to briefly trade above the 29,000 milestone for the first time. The blue-chip DJIA, +0.04% hit an all-time hgh at 29,009.07, then subsequently trimmed its rise. It was up 30 points, or 0.1%, at 28,987 in recent action. If the Dow manages to close at or above 29,000, it would mark the 37th trading day since hitting the last 1,000-point milestone on Nov. 15.

US economy added 145,000 jobs in December

New York (CNN Business)The US economy added 145,000 jobs in December, the Bureau of Labor Statistics said Friday.

Although the headline number slightly missed economists’ expectations, the unemployment rate remained steady at 3.5%, a historic low. Over the past three months, an average of 184,000 new positions were added per month.
December’s jobs total was nearly 100,000 jobs fewer than in November, when workers returning from the General Motors (GM) strike boosted numbers.

The report was filled with bright spots: The retail sector went on a particularly strong hiring spree in December, thanks to a very strong holiday shopping season. 41,000 retail jobs were added last month.
Yet jobs continued to evaporate in America’s battered manufacturing sector, which has struggled during the US-China trade war. The industry lost 12,000 jobs, compared with an expected increase of 5,000 new positions.

Paychecks rose less than expected in December, climbing only 0.1%. For the year, that put wage growth at 2.9%, less than the 3.1%.

U.S. Construction Spending Climbs More Than Expected In November

Construction spending in the U.S. increased by more than expected in the month of November, according to a report released by the Commerce Department on Friday.

The report said construction spending climbed by 0.6 percent to an annual rate of $1.324 trillion in November after inching up by 0.1 percent to an upwardly revised $1.317 trillion in October.

Economists had expected construction spending to rise by 0.3 percent compared to the 0.8 percent slump originally reported for the previous month.

The Commerce Department said spending on private construction rose by 0.4 percent to an annual rate of $985.5 billion in November.

The increase in private construction spending came as spending on residential construction jumped by 1.9 percent to $536.1 billion, more than offsetting a 1.2 percent nosedive in spending on non-residential construction to $449.4 billion.

Spending on public construction also climbed by 0.9 percent to an annual rate of $338.6 billion in November, partly reflecting a 2.2 percent spike in spending on highway construction.

Compared to the same month a year ago, total construction spending in November was up by 4.1 percent, as spending on private construction increased by 1.6 percent and spending on public construction spiked by 12.4 percent.

Sensex ends 147 points higher; Infosys up over 1%

The broader Nifty scaled its life-time (intra-day) high.

The BSE benchmark Sensex settled 147 points higher on Friday, tracking gains in index-heavyweights HDFC Bank and Infosys ahead of the earnings season.

After rallying 323 points during the day, the 30-share BSE index pared some gains to end 147.37 points, or 0.36%, higher at 41,599.72.

The broader Nifty scaled its life-time (intra-day) high of 12,311.20, before ending 40.90 points, or 0.33%, higher at 12,256.80.

Infosys was the top gainer in the Sensex pack, rising 1.47%, ahead of its quarterly results, scheduled for release after market hours.

Other gainers included Ultratech Cement, Maruti, Kotak Bank, Asian Paints and HUL.

ICICI Bank, IndusInd Bank, Titan and Bharti Airtel were among the losers, shedding up to 1.11%.

According to traders, focus has now shifted to quarterly earnings and the Union Budget. Investors are expecting measures from the government to revive the economy which has led to broad-based participation in equities.

Further, easing geopolitical tensions have also kept market mood upbeat, they said.

Brent crude oil futures slipped 0.31% to USD 65.17 per barrel.

The rupee appreciated 18 paise to 71.03 per US dollar (intra-day).

Bourses in Hong Kong, Tokyo and Seoul ended up to 0.91% higher, while Shanghai closed with losses.

European markets started on a tepid note.

U.S. Jobless Claims Drop More Than Expected To 214,000

With the more closely watched monthly jobs report looming, the Labor Department released a report on Thursday showing first-time claims for U.S. unemployment benefits fell by more than expected in the week ended January 4th.

The report said initial jobless claims dropped to 214,000, a decrease of 9,000 from the previous week’s revised level of 223,000.

Economists had expected jobless claims to edge down to 220,000 from the 222,000 originally reported for the previous week.

The Labor Department said the four-week moving average also slid to 224,000, a decrease of 9,500 from the previous week’s revised average of 233,500.

The less volatile four-week moving average pulled back after hitting its highest level since January of 2018 in the previous week.

Meanwhile, the report said continuing claims, a reading on the number of people receiving ongoing unemployment assistance, rose by 75,000 to 1.803 million in the week ended December 28th.

The four-week moving average of continuing claims also climbed to 1,744,750, an increase of 33,000 from the previous week’s unrevised average of 1,711,750.

On Friday, the Labor Department is scheduled to release a separate report on the employment situation in the month of December.

Economists expect employment to increase by 164,000 jobs in December after spiking by 266,000 jobs in November, while the unemployment rate is expected to hold at 3.5 percent.