Dow Makes Record Highs a Habit After Robust Jobs Report
NEW YORK (TheStreet) -- The Dow Jones Industrial Average earlier in the session smashed through 14,400 for the first time, before pulling back by the close to post its fourth-straight record closing session. The Dow and the S&P 500 booked a six-day winning streak on Friday.
Overall, major U.S. stock averages booked a positive session after a robust February employment report showed a decline in the unemployment rate to near pre-recession levels.
Treasury yields were popping late Friday afternoon.
The encouraging jobs growth number of 236,000 "affirms or confirms the movement in the stock market," said Darrell Cronk, regional chief investment officer for Wells Fargo Private Bank, which has more than $169 billion in assets under management. "It takes away this argument that the Federal Reserve is doing all the heavy economic lifting. That the economy itself, whether you look at this jobs report or some of the numbers you've seen in initial jobless claims or the ADP report, or the ISM, all of those economic indicators are starting to directionally move for us to" a more positive outlook.
Cronk, who thinks the nonfarm payrolls report for February was a "great" report, noted that the unemployment rate, which fell two tenths of 1%, was the lowest unemployment rate the economy has seen since December 2008, so "it again confirms that we're moving back to almost pre-recession levels which is encouraging," though it's not yet at the Fed's 6.5% unemployment target.
"Understand that one month does not make a trend, but certainly we're heading in the right direction," he said.
The Dow advanced 67.58 points, or 0.47%, at 14,397.07, earlier spiking to an intraday high of 14,413.17. The blue-chip index surged 2.18 on the week.
Breadth was positive, with winners outnumbering losers 23-7.
McDonald's said global comparable-store sales rose 1.7% in February, excluding a negative calendar shift as February 2012 included an extra day because it was a leap year. Shares rose 1.7%.