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| Wall Street and FTSE 100 hit new highs as bull market shakes off US jobs report - as it happened | |
| (about 1 hour later) | |
| And finally.... the Dow Jones has continued to ‘melt-up’ with aplomb. | |
| The benchmark US stock index gained another 220 points, or 0.88%, to finish the day at 25,295, which is obviously a new all-time high. | |
| The S&P 500 also hit a new closing high, as Wall Street celebrated its best start to a new year since 2006. | |
| Economic optimism, and predictions that US interest rates won’t be hiked too quickly, helped to push shares higher. | |
| Can the bull market continue next week? Come back on Monday to find out :) Until then, goodnight! GW | |
| Hello again. Marketwatch has an interesting explanation for the market rally: | Hello again. Marketwatch has an interesting explanation for the market rally: |
| Investors are feeling good about the U.S. stock market. In fact, they haven’t felt this good in years. | Investors are feeling good about the U.S. stock market. In fact, they haven’t felt this good in years. |
| The latest AAII investor sentiment survey, conducted on Jan. 3., indicates that 59.8% of polled investors are bullish on the market, meaning they expect prices will be higher in six months. That’s the highest level in about seven years, since a reading of 63.3% on Dec. 23, 2010, and it is significantly above the 38.5% historical average. The number of bullish investors has gone up by 7.1 percentage points in the past week alone. | The latest AAII investor sentiment survey, conducted on Jan. 3., indicates that 59.8% of polled investors are bullish on the market, meaning they expect prices will be higher in six months. That’s the highest level in about seven years, since a reading of 63.3% on Dec. 23, 2010, and it is significantly above the 38.5% historical average. The number of bullish investors has gone up by 7.1 percentage points in the past week alone. |
| There has been a corresponding drop in both bearish and neutral investors. The percentage of market pessimists has dropped to 15.6%, down 5.1 percentage points over the last week, while neutral investors have slid by 2 percentage points to 24.7%. Both are below their historical averages, which is 30.5% for bears and 31% for neutral investors. | There has been a corresponding drop in both bearish and neutral investors. The percentage of market pessimists has dropped to 15.6%, down 5.1 percentage points over the last week, while neutral investors have slid by 2 percentage points to 24.7%. Both are below their historical averages, which is 30.5% for bears and 31% for neutral investors. |
| More here: Bullish sentiment for U.S. stocks is at a seven-year high | More here: Bullish sentiment for U.S. stocks is at a seven-year high |
| OK, time for a recap. | OK, time for a recap. |
| The global stock market rally has driven Britain and America’s stock markets to fresh highs today, despite an underwhelming employment report from the US. | The global stock market rally has driven Britain and America’s stock markets to fresh highs today, despite an underwhelming employment report from the US. |
| The Dow Jones index has pushed further over the 25,000 mark, while in London the FTSE 100 has closed at a new peak over 7,700. | The Dow Jones index has pushed further over the 25,000 mark, while in London the FTSE 100 has closed at a new peak over 7,700. |
| Shares jumped despite the news that America’s economy didn’t create as many jobs in December as expected. The closely-watched Non-Farm Payroll only rose by 148,000, missing forecasts of a 190,000 gain, while wage growth was unexceptional at 2.5% over the last year. | Shares jumped despite the news that America’s economy didn’t create as many jobs in December as expected. The closely-watched Non-Farm Payroll only rose by 148,000, missing forecasts of a 190,000 gain, while wage growth was unexceptional at 2.5% over the last year. |
| My colleague Dominic Rushe explains: | My colleague Dominic Rushe explains: |
| The headline numbers suggest that the jobs market remains strong. The labor department announced that the unemployment rate held steady at 4.1% in December, close to a 17-year low. | The headline numbers suggest that the jobs market remains strong. The labor department announced that the unemployment rate held steady at 4.1% in December, close to a 17-year low. |
| The US economy has now added more than 2m jobs a year for seven straight years, a run last seen in the 1990s. But the pace of hiring has slowed, the recovery remains uneven, and wages continue to lag behind growth. | The US economy has now added more than 2m jobs a year for seven straight years, a run last seen in the 1990s. But the pace of hiring has slowed, the recovery remains uneven, and wages continue to lag behind growth. |
| Analysts voiced concerns that US retailers cut jobs in December - despite the festive shopping season. | Analysts voiced concerns that US retailers cut jobs in December - despite the festive shopping season. |
| In the UK, car sales fell in December for the first time since 2011 - and by the biggest amount since 2009. | In the UK, car sales fell in December for the first time since 2011 - and by the biggest amount since 2009. |
| Further falls are expected in 2018, as consumers continue to shun diesel cars -- with some switching to electric cars instead. | Further falls are expected in 2018, as consumers continue to shun diesel cars -- with some switching to electric cars instead. |
| The automobile industry is now urging the government to agree a Brexit transition deal by March, at the latest, otherwise manufacturers will be forced to trigger contingency plans. | The automobile industry is now urging the government to agree a Brexit transition deal by March, at the latest, otherwise manufacturers will be forced to trigger contingency plans. |
| I’ll be back later with the close of Wall Street.... | I’ll be back later with the close of Wall Street.... |
| Boom! The FTSE 100 has ended the week at a new all-time high. | Boom! The FTSE 100 has ended the week at a new all-time high. |
| The blue-chip index of the biggest companies listed in London has closed at 7724 - the first time it has finished over the 7700 mark. | The blue-chip index of the biggest companies listed in London has closed at 7724 - the first time it has finished over the 7700 mark. |
| That’s a gain of 28 points, or 0.37%. | That’s a gain of 28 points, or 0.37%. |
| Energy provider Centrica and water group United Utilities were the biggest risers, up around 3% after an analyst upgrade. | Energy provider Centrica and water group United Utilities were the biggest risers, up around 3% after an analyst upgrade. |
| But insurance group Admiral led the fallers, down 3% after figures showed UK car sales fell last year - and may keep falling in 2018. Fewer new cars means less insurance business. | But insurance group Admiral led the fallers, down 3% after figures showed UK car sales fell last year - and may keep falling in 2018. Fewer new cars means less insurance business. |
| Other European markets also had a strong day, as the first week of 2018 gets off to a strong start. No wonder analysts are talking about a ‘melt-up’.... | Other European markets also had a strong day, as the first week of 2018 gets off to a strong start. No wonder analysts are talking about a ‘melt-up’.... |
| I missed this detail earlier, but the opening bell of the New York stock exchange was rung by a professional bull rider - J.B. Mauney. | I missed this detail earlier, but the opening bell of the New York stock exchange was rung by a professional bull rider - J.B. Mauney. |
| This honour was to mark the 25 anniversary of Professional Bull Riders (an enterprise devoted to the noble art of not falling off a 2000 pound bull with a temper). | This honour was to mark the 25 anniversary of Professional Bull Riders (an enterprise devoted to the noble art of not falling off a 2000 pound bull with a temper). |
| You know you’re in a bull market when you see stetsons on a trading floor.... | You know you’re in a bull market when you see stetsons on a trading floor.... |
| With 30 minutes to go, London’s stock market could end the week at a new record high. | With 30 minutes to go, London’s stock market could end the week at a new record high. |
| The FTSE has dropped back from this morning’s intraday peaks, but is still 11 points higher than yesterday’s record close, at 7707 points. | The FTSE has dropped back from this morning’s intraday peaks, but is still 11 points higher than yesterday’s record close, at 7707 points. |
| Here’s a nice summary of the US jobs report: | Here’s a nice summary of the US jobs report: |
| U.S. hiring slows at end of 2017 as job gains slacken to 148,000 in December https://t.co/itK8l6bltM pic.twitter.com/WCmzHI6ukG | U.S. hiring slows at end of 2017 as job gains slacken to 148,000 in December https://t.co/itK8l6bltM pic.twitter.com/WCmzHI6ukG |
| Just in: German lender Deutsche Bank says Donald Trump’s tax reform package will cost it €1.5bn. | Just in: German lender Deutsche Bank says Donald Trump’s tax reform package will cost it €1.5bn. |
| This makes Deutsche Bank the latest in a string of major companies to announce that their deferred tax assets are less valuable, now that America’s corporation tax rate is being cut from 35% to 21%. | This makes Deutsche Bank the latest in a string of major companies to announce that their deferred tax assets are less valuable, now that America’s corporation tax rate is being cut from 35% to 21%. |
| Deutsche also says that weak markets have hit its revenues, meaning it will post a small loss for the fourth quarter of the financial year. | Deutsche also says that weak markets have hit its revenues, meaning it will post a small loss for the fourth quarter of the financial year. |
| This has sent Deutsche’s shares sliding almost 5%. | This has sent Deutsche’s shares sliding almost 5%. |
| Deutsche Bank shares at session low after company says it "expects to recognize an approximate €1.5B non-cash tax charge" in its Q4 results due to U.S. tax reform. https://t.co/QPrwouAAgT pic.twitter.com/3WvxBHkoaw | Deutsche Bank shares at session low after company says it "expects to recognize an approximate €1.5B non-cash tax charge" in its Q4 results due to U.S. tax reform. https://t.co/QPrwouAAgT pic.twitter.com/3WvxBHkoaw |
| It’s slightly ironic, as Deutsche Bank has been a major lender to Donald Trump over the years (a relationship that has come under increasing scrutiny). | It’s slightly ironic, as Deutsche Bank has been a major lender to Donald Trump over the years (a relationship that has come under increasing scrutiny). |
| MSNBC’s Steve Benen have calculated that US job creation slowed last year - the first 12 months of Donald Trump’s presidency. | MSNBC’s Steve Benen have calculated that US job creation slowed last year - the first 12 months of Donald Trump’s presidency. |
| Benen writes: | Benen writes: |
| Now that we have data for all of the previous calendar year, we can note that the U.S. added 1.84 million jobs in 2011, 2.19 million jobs in 2012, 2.33 million in 2013, 3.11 million in 2014, 2.74 million in 2015, 2.24 million in 2016, and 2.05 million in 2017. | Now that we have data for all of the previous calendar year, we can note that the U.S. added 1.84 million jobs in 2011, 2.19 million jobs in 2012, 2.33 million in 2013, 3.11 million in 2014, 2.74 million in 2015, 2.24 million in 2016, and 2.05 million in 2017. |
| Or put another way, while Donald Trump’s first year as president has been pretty good overall for job creation, Americans nevertheless saw the slowest job growth in six years. | Or put another way, while Donald Trump’s first year as president has been pretty good overall for job creation, Americans nevertheless saw the slowest job growth in six years. |
| Job growth wasn't bad in Trump's 1st year in office, but it did slow to a six-year low. Job totals by year:2011: 1.84m2012: 2.19m2013: 2.33m2014: 3.11m2015: 2.74m2016: 2.24m2017: 2.05mhttps://t.co/E8dQJwfiRi | Job growth wasn't bad in Trump's 1st year in office, but it did slow to a six-year low. Job totals by year:2011: 1.84m2012: 2.19m2013: 2.33m2014: 3.11m2015: 2.74m2016: 2.24m2017: 2.05mhttps://t.co/E8dQJwfiRi |
| Newsflash: US factory orders rose by 1.3% in November, beating the consensus forecast of 1.1% growth. | Newsflash: US factory orders rose by 1.3% in November, beating the consensus forecast of 1.1% growth. |
| That’s up from 0.4% in October, and the fourth monthly rise in a row. American factories reported rising demand for transportation and electrical equipment. | That’s up from 0.4% in October, and the fourth monthly rise in a row. American factories reported rising demand for transportation and electrical equipment. |
| However.... the latest survey of America’s services sector is less impressive. Growth slowed to a four-month low in December, according to ISM’s non-manufacturing index which has dipped to 55.9 from 57.6. | However.... the latest survey of America’s services sector is less impressive. Growth slowed to a four-month low in December, according to ISM’s non-manufacturing index which has dipped to 55.9 from 57.6. |
| *U.S. ISM NON-MANUFACTURING INDEX DROPS TO A FOUR-MONTH LOW | *U.S. ISM NON-MANUFACTURING INDEX DROPS TO A FOUR-MONTH LOW |
| Boom! The US stock market has hit fresh record highs (yet again) at the start of trading in New York. | Boom! The US stock market has hit fresh record highs (yet again) at the start of trading in New York. |
| Traders are shrugging off the news that America’s job creation slowed last month. | Traders are shrugging off the news that America’s job creation slowed last month. |
| The Dow Jones continued its march upwards, gaining 70 points to 25,145. The S&P 500 and the Nasdaq are also pushing higher, as the bull market shows no inclination to fizzle out. | The Dow Jones continued its march upwards, gaining 70 points to 25,145. The S&P 500 and the Nasdaq are also pushing higher, as the bull market shows no inclination to fizzle out. |
| But while shares rise, the US dollar has dropped. | But while shares rise, the US dollar has dropped. |
| Jacob Deppe, Head of Trading at online trading platform, Infinox, explains: | Jacob Deppe, Head of Trading at online trading platform, Infinox, explains: |
| “Surprisingly, Wall Street shook off the lower than expected jobs data and rose still higher, although the Dollar fell 0.3% versus the Euro and 0.26% versus the Pound on the news. | “Surprisingly, Wall Street shook off the lower than expected jobs data and rose still higher, although the Dollar fell 0.3% versus the Euro and 0.26% versus the Pound on the news. |
| “December’s Non-Farm Payrolls data does not fit the current narrative of booming US growth. The initial reaction from the market is to ignore. That could be perilous. | “December’s Non-Farm Payrolls data does not fit the current narrative of booming US growth. The initial reaction from the market is to ignore. That could be perilous. |
| “It’s also possible markets have decided the recent harsh weather contributed to the slowdown in jobs | “It’s also possible markets have decided the recent harsh weather contributed to the slowdown in jobs |