MARKET SNAPSHOT: U.S. Stocks Edge Higher; Dow Hits Record

By Anora Mahmudova and Barbara Kollmeyer, MarketWatch 321,000 jobs added in November, unemployment rate at 5.8%

NEW YORK (MarketWatch) -- The U.S. stock market struggled to hold opening gains on Friday as investors tried to determine whether a strong jobs report means the Federal Reserve will move quickly to raise rates.

The blowout report showing that employers added 321,000 jobs in November, beating the consensus number by 86,000, while unemployment rates remained steady at 5.8%, offers further signs that the U.S. economy is improving.

Strong jobs numbers along with improving wage growth puts pressure on the Federal Reserve to start raising rates sooner and faster. Investors will be watching the outcome of the FOMC meeting on Dec. 16-17 closely for any hints on the timing of rate hikes.

Worries about rate increases, however, didn't prevent benchmarks from inching toward new records and modest weekly gains. The S&P 500 (SPX) was marginally higher, led by the financials, while utilities and energy sector shares were a drag on the index.

The Dow Jones Industrial Average (DJI) set an intraday high, but pulled back and was barely in positive territory, while the tech-heavy Nasdaq Composite (RIXF) was flat.

Read also: 10 biggest risks to the stock market in 2015

Economic data: The strong November jobs tally represented the biggest gain since early 2012 and extends the strongest streak of hiring in several decades. Virtually every industry was hiring and many of the new jobs were higher paying ones.

In a good sign, the average hourly wage of American workers rose a strong 0.4% in November to $24.66 after two straight weak readings. Still, wages are only up 2.1% in the past 12 months, a rate that's barely changed since the recovery began in mid-2009.

Meanwhile, factor orders fell a worse-than-expected 0.7% in October, the Commerce Department reported at 10 a.m.

More on the dock, factory orders data, consumer credit will be released at 3 p.m. Eastern.

Stocks to watch: There is just one company was on the earnings calendar Friday: Discount retailer Big Lots Inc.(BIG) posted a third straight quarter of same-store sales growth, as a narrowing loss led the company to raise the top end of guidance for the current quarter. Shares plunged.(BIG)

Shares of Gap Inc.(GPS) added to gains made late Thursday after the retailer said November comparable sales were up 6% versus the same month a year ago.

Overseas markets: While the European Central Bank gave no hints at Thursday's meeting about future stimulus, markets were convinced otherwise, with European stocks up 1%. That came even as the Bundesbank cut its German growth forecasts for this year and the next two. The FTSE 100 was up slightly.

Chinese trading volume hit a record, with the Shanghai Composite Index closing up 1.3% in a wild day of trading. The index has gained nearly 10% this week. The Nikkei 225 index rose just 0.2%, but supported the dollar, which stayed above the key Yen120 level.

Oil prices continued to fall, with crude (CLF5) hovering around $66 a barrel and Brent under $70 a barrel after Saudi Arabia cut prices for U.S. and Asia oil, and analysts are waiting to see if other OPEC nations will follow. Gold prices(GCG5) fell 1.4%.

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