(Reuters) – U.S. stocks rose on Friday, with the Dow and S&P 500 on track for their seventh straight weekly advance after the November jobs report came in much stronger than anticipated, boosting banks and other sectors tied to the pace of growth.
While crude oil continued its recent decline, weighing on energy shares, the gains were widespread, with market weakness concentrated in defensive sectors, which underperform in periods of economic expansion.
Payrolls rose by 321,000 in November, the largest number in nearly three years and way above the
While the report blew past forecasts, it also raised expectations that a rate hike from the Federal Reserve may materialize sooner than previously thought.
Financials .SPSY led the day’s gains, up 1.2 percent as higher interest rates would prop up earnings in the sector. Bank of America (BAC.N) rose 2.8 percent to $17.70 while Goldman Sachs (GS.N) was up 2.4 percent to $196.50, boosting the Dow.
Utilities .SPLRCU, a dividend play, fell 1.1 percent as Treasuries yields rose. Energy .SPNY fell 0.5 percent alongside a 1.1 percent drop in crude CLc1 prices.
“This report solidifies the idea that the economy is getting stronger, and the more economic activity on Main Street, the better it will be for financials,” said Adam Sarhan, chief executive of Sarhan Capital in New York.