US close: S&P 500, Nasdaq hit new highs after solid jobs data

(Sharecast News) - The S&P 500 and Nasdaq both hit new record highs on Friday after solid economic data reinforced expectations for a quarter-point cut in interest rates at the Federal Reserve's next meeting. The S&P 500 rose 0.25% to 6,090.27, marginally topping a previous record of 6,086.49 reached on Wednesday, while the Nasdaq gained 0.81% to 19,859.77, ahead of an earlier peak of 19,735.12.

The Dow, however, fell for a second day after also hitting an all-time high on Wednesday, slipping 0.28% to 44,642.52.

Data released during the session showed that non-farm payrolls increased by 227,000 in November, ahead of the consensus forecast of 214,000, and well ahead of October's upwardly revised figure of 36,000 (initial estimate: 12,000) - which was distorted by the impact of hurricanes and industrial action.

"There is nothing in the report to change our call for the Federal Reserve to lower rates by 25bps at the December 18 FOMC meeting, but we expect the FOMC to proceed more cautiously in 2025 and skip cutting rates in January," said Nancy Vanden Houten, lead US economist at Oxford Economics.

The US unemployment rate ticked higher by one tenth of a percentage point to 4.2%, in line with economists' forecasts, while average hourly earnings rose by 0.4% (consensus: 0.3%).

"Last month's payrolls shocker wasn't completely revised away, but the return of 200K+ jobs growth reminded investors about the strength of the US, at a time when political turmoil seems to be springing up almost everywhere else," said Chris Beauchamp, chief market analyst at IG.

"An ideal combination of rising earnings, a strong economy and falling interest rates provides a compelling response to those still wondering why the US stock market seems to win out over its competitors," he said.

In other news, the University of Michigan's consumer confidence index rose for a fifth month running in December, increasing to 74.0 from 71.8 in November, beating the 73.0 expected by the market.

Market movers

Athletics apparel retailer Lululemon Athletica shares jumped 16% after third-quarter results beat market forecasts, with sales up 9% and net income surging 41%. The company also delivered guidance in line with expectations for the current quarter.

Beauty retailer Ulta Beauty rose 9% following a top and bottom-line earnings beat, as the company also upgraded its profit expectations for the full year.

Meanwhile, tech stocks were performing well with results from the likes of Docusign, Hewlett Packard Enterprise, Asana and Rubrik all beating expectations.

Unitedhealth's stock continued to fall in the wake of Wednesday's shock killing of its chief executive Brian Thompson.

Dow Jones - Risers

International Business Machines Corporation (CDI) (IBM) $238.21 1.40% American Express Co. (AXP) $303.99 1.15% Home Depot Inc. (HD) $431.26 1.13% Walgreens Boots Alliance, Inc. (WBA) $8.56 1.06% JP Morgan Chase & Co. (JPM) $247.65 0.77% Visa Inc. (V) $311.29 0.62% Intel Corp. (INTC) $20.92 0.58% Goldman Sachs Group Inc. (GS) $599.63 0.48% Walmart Inc. (WMT) $95.70 0.42% Nike Inc. (NKE) $78.89 0.39%

Dow Jones - Fallers

Unitedhealth Group Inc. (UNH) $549.62 -5.07% Chevron Corp. (CVX) $155.24 -2.57% Boeing Co. (BA) $153.93 -1.75% Procter & Gamble Co. (PG) $173.82 -1.26% Travelers Company Inc. (TRV) $261.38 -0.80% Amgen Inc. (AMGN) $272.58 -0.64% Coca-Cola Co. (KO) $62.53 -0.62% Dow Chemical Co. (DOW) $41.99 -0.47% Merck & Co. Inc. (MRK) $103.09 -0.44% Verizon Communications Inc. (VZ) $42.37 -0.42%

S&P 500 - Risers

Hewlett Packard Enterprise (HPE) $23.95 10.62% Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $428.17 8.99% CenturyLink Inc. (LUMN) $7.00 8.19% Broadcom Inc. (AVGO) $179.53 5.31% Whirlpool Corp. (WHR) $112.90 3.96% Foot Locker Inc. (FL) $22.00 3.92% Albemarle Corp. (ALB) $104.96 3.82% AutoZone Inc. (AZO) $3,309.44 3.74% Advance Auto Parts (AAP) $44.97 3.12% VF Corp. (VFC) $21.07 3.03%

S&P 500 - Fallers

Unitedhealth Group Inc. (UNH) $549.62 -5.07% Helmerich & Payne Inc. (HP) $33.25 -4.46% National Oilwell Varco Inc. (NOV) $14.94 -4.35% Halliburton Co. (HAL) $28.78 -4.13% FMC Technologies Inc. (FTI) $30.75 -3.82% Diamondback Energy Inc. (FANG) $166.83 -3.39% Eversource Energy (ES) $59.75 -3.02% Coterra Energy Inc. (CTRA) $24.93 -2.84% CVS Health Corp (CVS) $55.33 -2.76% Elevance Health Inc. (ELV) $381.86 -2.76%

Nasdaq 100 - Risers

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $428.17 8.99% Tesla Inc (TSLA) $389.22 5.34% Broadcom Inc. (AVGO) $179.53 5.31% Sirius XM Holdings Inc (SIRI) $28.31 4.58% Amazon.Com Inc. (AMZN) $227.03 2.94% Trip.com Group Limited (TCOM) $69.07 2.77% Adobe Systems Inc. (ADBE) $552.96 2.74% Meta Platforms Inc. (META) $623.77 2.44% JD.com, Inc. (JD) $37.18 2.11% Align Technology Inc. (ALGN) $232.35 1.99%

Nasdaq 100 - Fallers

Liberty Global plc Series A (LBTYA) $13.42 -3.17% Liberty Global plc Series C (LBTYK) $14.03 -2.50% Mercadolibre Inc. (MELI) $1,947.18 -1.90% Nvidia Corp. (NVDA) $142.44 -1.81% Hasbro Inc (HAS) $65.98 -1.67% Monster Beverage Corp (MNST) $52.27 -1.56% PACCAR Inc. (PCAR) $115.88 -1.48% Western Digital Corp. (WDC) $71.07 -1.44% Gilead Sciences Inc. (GILD) $92.13 -1.35% DENTSPLY Sirona Inc. (XRAY) $19.08 -1.19%