Stocks got a lift in early trading Friday as the US employment report came in better than expected. After the weak private sector report issued by SGK core holding ADP earlier in the week, traders had feared the numbers would come in weaker than expected.
The Federal Reserve released the minutes to its May Federal Open Market Committee (FOMC) meeting this week after the standard three week delay.
Applications for US unemployment benefits fell to a four-week low, adding to evidence that the job market remains healthy in the face of growing uncertainty tied to trade policy. Initial claims decreased by 2,000 to 227,000 in the week ended May 17, roughly in line with forecasts, Labor Department data showed Thursday.
Last weekend, negotiations between the U.S. and China ended with a positive tone. The U.S. will temporarily cut tariffs on Chinese goods to 30% (from 145%) while China will reduce tariffs on American goods to 10% (from 125%).
Wall Street traders looked past weak economic data and Corporate America’s warnings in early week trading to push stocks higher this week as bond yields fell on speculation the Federal Reserve will cut interest rates to prevent a recession.
New home sales, according to the US Census Bureau in data released Wednesday, rose 7.4% in March to an annualized rate of 724,000, thanks to a surge in the South, the nation's biggest homebuilding area.