Wall St off to a solid start in April

  • 02/04/2016

Wall Street has extended a seven-week rally after upbeat US jobs and factory data raised hope of stronger corporate earnings.

The Labor Department's report showed a rise of 215,000 in nonfarm payrolls in March, while the unemployment rate rose to five per cent from an eight-year low of 4.9 percent as more Americans entered the labour force.

Another report showing the US manufacturing sector resumed growth in March.

"It's a very solid number overall, but I don't think it changes anything as far as the Fed's outlook," said Jon Adams, a senior investment strategist and portfolio manager at BMO in Chicago.

Wall Street has been concerned about tepid corporate earnings and will keep a close eye on the quarterly reports that start rolling in coming weeks.

Analysts expect S&P 500 companies' first-quarter earnings to fall seven percent year over year, with energy companies weighing heavily, according to Thomson Reuters data.

"We don't think P/E (prices to earnings) ratios are going anywhere," said Charlie Smith, chief investment officer at Fort Pitt Capital Group, adding that he believes the S&P 500 is fairly valued. "For this year, we think it's going to be a tough slog."

The Dow Jones industrial average rose 0.61 per cent to end at 17,792.75 points and the S&P 500 gained 0.63 percent to 2072.78,

The Nasdaq Composite added 0.92 percent to 4914.54.

For the week, the S&P climbed 1.8 per cent, the Dow added 1.6 percent and the Nasdaq jumped three percent.


Share to Facebook Share to Twitter Share to Email
Share to Facebook Share to Twitter Share to Viber Share to WhatsApp Share to Email