By Mark DeCambre and Anora M. Gaudiano, MarketWatch

WSJ: Goldman's CEO Blankfein could retire as early as the end of 2018

The Dow closed back above 25,000 and the Nasdaq ended at a record on Friday as Wall Street appeared to shake off worries about tariffs on steel and aluminum to focus on an unexpectedly strong jobs report.

Read:Is this bull market really 9 years old? (http://www.marketwatch.com/story/is-this-bull-market-really-9-years-old-2018-03-09)

The U.S. created 313,000 new jobs in February, the biggest gain since mid-2016 and a reflection of the strongest labor market in two decades. Economists polled by MarketWatch had predicted a 222,000 increase in nonfarm jobs. The unemployment rate was unchanged at 4.1%. Hourly pay rose 4 cents, or 0.1%, to $26.75 an hour, the government said Friday. Economists polled by MarketWatch (http://www.marketwatch.com/story/are-workers-really-getting-a-raise-wages-are-focus-of-upcoming-us-jobs-report-2018-03-08) had been expecting average hourly earnings to have risen 0.2%, after a 0.3% gain in January, with an overall jobs gain of 220,000. The subdued rise in wage growth for the month helped to ease worries about runaway inflation.

What did the main benchmarks do?

The Dow Jones Industrial Average surged 440.53 points, or 1.8%, to end at 25,335.74 for a weekly gain of 3.3%. This is the first time the blue-chip index closed above 25,000 since Feb. 28.

Also see:In the bull market's ninth year, 'winning' stocks hide lingering pain (http://www.marketwatch.com/story/in-the-bull-markets-ninth-year-winning-stocks-hide-lingering-pain-2018-03-09)

The S&P 500 index climbed 47.60 points, or 1.7%, to close at 2,786.57, ending the week 3.5% higher. Financials, industrials and technology sectors all rallied more than 2%.

The Nasdaq Composite Index added 132.86 points, or 1.8%, to finish at 7,560.81, up 4.2% for the week. The index hadn't closed at a record (http://www.marketwatch.com/story/nasdaq-sets-intraday-record-for-the-first-time-in-6-weeks-marking-a-brisk-rally-for-tech-stocks-since-correction-2018-03-09) or set an intraday mark since Jan. 26.

On Thursday (http://www.marketwatch.com/story/nasdaq-set-sights-on-5th-win-in-a-row-as-spotlight-stays-on-tariffs-2018-03-08), the S&P 500 index advanced 0.5%, while the Dow industrials and Nasdaq rose 0.4% each. The gains came as the markets took positively the news that President Donald Trump signed a steel and aluminum tariff proclamation, but allowed for some exemptions.

Need to know:Go big on stocks as Trump has 1 big reason not to launch trade war, says quant (http://www.marketwatch.com/story/go-big-on-stocks-as-trump-has-a-big-reason-not-to-launch-a-trade-war-2018-03-09)

What drove the markets?

Investors had been apprehensive after January's upbeat jobs report was blamed for a meltdown by stocks last month (http://www.marketwatch.com/story/dow-futures-tumble-more-than-250-points-on-jobs-day-2018-02-02). Investors are wary of signs that the U.S. labor market is tightening up, but the February wage figures appeared to be more muted than January's report, market participants said.

Rapidly rising inflation could also add pressure on the Federal Reserve to speed up its rate rises, which could strangle the stock market.

Data released earlier in the week showed private-sector employers added a stronger-than-expected 235,000 jobs (http://www.marketwatch.com/story/labor-market-red-hot-as-adp-says-235000-private-sector-jobs-added-in-february-2018-03-07).

Markets appeared to largely dismiss news that Trump has accepted an invitation to meet North Korea's leader. The meeting could be held as early as May, according to a senior South Korean official who made the announcement at the White House on Thursday evening (http://www.marketwatch.com/story/trump-accepts-invitation-to-meet-north-korean-leader-kim-jong-un-2018-03-08). (http://www.marketwatch.com/story/trump-accepts-invitation-to-meet-north-korean-leader-kim-jong-un-2018-03-08) But the news did give Korean stocks a boost.

Read:How the Trump-Kim meeting news moved markets (http://www.marketwatch.com/story/how-the-trump-kim-meeting-news-moved-markets-2018-03-09)

Investors were also still taking in reaction to Trump's tariff announcement, which weighed on Korean steelmakers in Asia.

What were strategists saying?

"You're getting strong jobs with not a lot of wage growth, which is perfect below expectations. And that's what's sort of powering the futures right. It's the best of both worlds," said Robert Pavlik, chief investment strategist at SlateStone Wealth.

"If you had tried to concoct an event that would be good news for the economy and good for the markets, you would come up with the kind of jobs report that we got today: solid headline number with only moderate wage growth," said Kristina Hooper, chief global market strategist at Invesco.

"For a labor market that we are told is rather tight this is quite a big number and the fact that we saw wage growth slow to 2.6% from 2.9% would suggest that there is much more slack in this particular jobs market than most people think," wrote Michael Hewson, chief market analyst, at CMC Markets UK, in a Friday note.

"This would suggest that those calls for four rate rises this year may well be a little bit premature, particularly when you see the participation rate jump from 62.7% to 63%, as more people return to the workforce," Hewson said.

Fed speakers and data

"I think we really have the ability to be cautious," said Federal Reserve President of Chicago Charles Evans during a CNBC interview on Friday after the jobs report, referring to the Fed's plan for coming rate increases. Evans isn't presently a voting member of the Federal Open Market Committee.

The market volatility seen over the past month is a "healthy realization" by investors that the risks are two-sided, said Boston Fed President Eric Rosengren on Friday, at the Springfield Regional Chamber of Commerce (http://www.marketwatch.com/story/feds-rosengren-says-markets-waking-up-to-risk-growth-could-be-unsustainably-strong-2018-03-09) in Springfield, Mass.

Opinion:This is what the Fed Model says about the outlook for stocks as the bull market turns 9 (http://www.marketwatch.com/story/this-is-what-the-fed-model-says-about-the-outlook-for-stocks-as-the-bull-market-turns-9-2018-03-09)

Meanwhile, wholesale inventories rose by 0.8% in January, up from 0.4% before.

Which stocks were in focus?

(http://www.marketwatch.com/story/european-stocks-rise-for-4th-day-in-a-row-as-ecb-steals-focus-from-us-tariffs-2018-03-08)Dana Inc.(DAN) shares jumped 3.6% after announcing a deal to combine with GKN PLC's (GKN.LN) Driveline unit in a deal valued at around $6.1 billion, including debt (http://www.marketwatch.com/story/dana-to-combine-with-driveline-division-of-uks-gkn-in-deal-valued-at-61-billion-2018-03-09).

Big Lots Inc.(BIG) shares skidded 10% after fourth-quarter results (http://www.marketwatch.com/story/big-lots-stock-tumbles-as-surprise-same-store-sales-drop-offsets-profit-beat-dividend-hike-2018-03-09).

Goldman Sachs Group Inc. shares rose (http://www.marketwatch.com/story/goldmans-blankfein-is-set-to-retire-as-ceo-early-as-2018-according-to-reports-2018-03-09) 1.7% after The Wall Street Journal reported (http://www.marketwatch.com/story/goldman-ceo-to-step-down-this-year-2018-03-09)that Chief Executive Lloyd Blankfein was preparing to retire as early as the end of 2018.

How did other assets fare?

(http://www.marketwatch.com/story/european-stocks-rise-for-4th-day-in-a-row-as-ecb-steals-focus-from-us-tariffs-2018-03-08)European stocks mostly closed higher (http://www.marketwatch.com/story/german-stocks-fall-as-exports-trump-tariffs-bite-as-european-equities-seesaw-2018-03-09), while Asian markets were up across the board except India (http://www.marketwatch.com/story/stocks-in-japan-south-korea-surge-on-news-of-trump-kim-meeting-2018-03-08).

Gold prices settled slightly up, while oil futures (http://www.marketwatch.com/story/oil-prices-steady-after-us-output-climb-helps-drive-plunge-2018-03-08)moved sharply higher (http://www.marketwatch.com/story/oil-ticks-higher-on-potential-us-north-korea-meeting-2018-03-09) and the ICE U.S. Dollar Index was flat.

The yield on the 10-year U.S. Treasury rose to 2.89%.

--Sue Chang and Barbara Kollmeyer contributed to this article

 

(END) Dow Jones Newswires

March 09, 2018 16:37 ET (21:37 GMT)

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