(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* U.S. labor market slowing as COVID-19 pandemic rages
* Energy shares bolstered by rise in crude prices
* U.S. 10-yr yield hits highest since March, supporting
* Boeing shares fall as company cuts 787 jetliner production
* Indexes up: Dow 0.56%, S&P 0.6%, Nasdaq 0.48%
Dec 4 (Reuters) - Wall Street's main indexes rose to
all-time highs on Friday as data showing the slowest U.S. jobs
growth in six months raised investors' expectations for a new
fiscal relief bill to help revive the coronavirus-hit economy.
So-called "cyclical" stocks seen as particularly sensitive
to the economy, such as energy and industrials
, lead the gains as most S&P 500 sectors rose.
"Theres clearly a cyclical rally, so its got to be
attributable to rising optimism on the stimulus front," said
David Joy, chief market strategist at Ameriprise Financial in
The Labor Department's closely watched report showed nonfarm
payrolls increased by 245,000 jobs in November, below
economists' expectations of 469,000 jobs and the smallest gain
since the labor recovery started in May.
U.S. President-elect Joe Biden said the November U.S. jobs
report underlined the need for urgent action on coronavirus
relief but that any package passed by Congress now would not
suffice and that more would be needed in January.
"The bad news of the weakening jobs picture is potentially
good news for investors because it means that the stimulus bill
is much more likely to take place in a fairly short time frame,"
said Ryan Detrick, senior market strategist at LPL Financial in
The Dow Jones Industrial Average rose 167.35 points,
or 0.56%, to 30,136.87, the S&P 500 gained 22 points, or
0.60%, to 3,688.72 and the Nasdaq Composite added 59.79
points, or 0.48%, to 12,436.98.
The benchmark 10-year yield hit its highest
level since March at over 0.98%, helping support financial
shares which are highly sensitive to interest rates.
Energy shares were also bolstered by gains in oil prices,
with shares of Diamondback Energy Inc up 11.6% and
Occidental Petroleum up 10.7%.
Utilities lagged the most among major sectors,
Positive coronavirus vaccine updates from drugmakers have
raised hopes for an economic recovery next year and overshadowed
worries over a surge in U.S. infections, setting the major
indexes up for another week of gains after the benchmark S&P 500
surged over 10% in November.
In company news, Boeing shares fell 1.9% as a top
company executive said the company is reducing production of its
787 Dreamliner for the fourth time in 18 months.
Advancing issues outnumbered declining ones on the NYSE by a
3.18-to-1 ratio; on Nasdaq, a 2.55-to-1 ratio favored advancers.
The S&P 500 posted 47 new 52-week highs and no new lows; the
Nasdaq Composite recorded 199 new highs and 6 new lows.
(Additional reporting by Shriya Ramakrishnan and Medha Singh in
Bengaluru; Editing by Anil D'Silva, Sriraj Kalluvila and Diane