Dow Jones Industrial Average Crosses 29000 for First Time
10 January 2020 - 3:42PM
Dow Jones News
By Gunjan Banerji and Anna Isaac
The Dow Jones Industrial Average jumped past the 29000 milestone
for the first time after fresh jobs data showed that unemployment
hovered at a 50-year low in December.
The blue-chip index rose 46 points, or 0.2%, to 29003.10 in
early trading. The S&P 500 rose 0.2%. The Nasdaq Composite
added 0.3%. All three indexes were on track for fresh records.
The jobs data showed employers added 145,000 jobs in December,
capping a 10th straight year of payroll gains.
However, the pace of hiring slowed last year, reflecting global
economic uncertainty, fading effects of 2018's tax cuts and
employers' difficulty in finding enough workers. Private-sector
wages advanced 2.9% in December from a year earlier, the smallest
annual gain since July 2018.
Government bond yields dropped on the report. The yield on the
10-year Treasury note fell to 1.834% in early trading, from 1.857%
on Thursday, before paring declined. Yields fall as bond prices
rise. Gold prices also inched higher.
Investors were closely watching the U.S. Labor Department's
December jobs report for any signs of a slowing economy. The
figures don't stoke concerns about the economy overheating or
heading toward an imminent recession, analysts said. Low wages
alongside robust hiring have buoyed markets in recent years, and
the latest data indicated that scenario persists.
The continued job creation in 2019 -- on the heels of payroll
gains every year since 2010 -- would help bolster the Federal
Reserve's view that monetary policy doesn't need to be eased
further as the U.S. economy is continuing to grow. Some analysts
said the latest figures didn't alter the outlook on monetary
policy.
"I just don't think it's a needle-mover either way," said Liz
Ann Sonders, chief investment strategist at Charles Schwab. "The
stock market has a lot of momentum going for it."
On Thursday, two senior Fed officials said they saw no need to
change short-term interest rates soon, and that they were upbeat
about the economic outlook.
"The employment rate is still below what it was before the
financial crisis," said Florian Hense, an economist at Berenberg
Bank. "What would make them raise rates is wage inflation close to
4%, and we're pretty far from that."
Write to Gunjan Banerji at Gunjan.Banerji@wsj.com and Anna Isaac
at anna.isaac@wsj.com
(END) Dow Jones Newswires
January 10, 2020 10:27 ET (15:27 GMT)
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