US stocks rise after payrolls grow; Dec rate cut still likely

US stocks climbed higher Friday after data showed that job growth rose in November, but probably not by enough to deter the Federal Reserve from cutting interest rates later this month.

At 09:50 ET (14:50 GMT), the Dow Jones Industrial Average rose 95 points, or 0.2%, the S&P 500 index climbed 24 points, or 0.4%, and the NASDAQ Composite gained 135 points, or 0.7%.  Nonfarm payrolls rise 

Nonfarm payrolls increased by 227,000 jobs last month, above the expected 202,000, after rising an upwardly revised 36,000 in October as the labor market reeled from Hurricanes Helene and Milton as well as a big strike at Boeing (NYSE:BA ) factories in the West Coast. 

The overall unemployment rate  came in at 4.2%, matching expectations, and beating the prior month's 4.1% rate. Average hourly earnings  came in at 0.4%, unchanged from October and above the 0.3% expected.

Markets have largely maintained their bets on a 25 basis point rate cut by the Fed later in December, and this release is unlikely to change this expectation. But doubts have emerged about future easing, especially as investors also looked to inflationary policies under President-elect Donald Trump. Positive corporate earnings continue 

On the corporate side, a number of companies released quarterly earnings that were well received on Wall Street.

Ulta Beauty (NASDAQ:ULTA ) stock rose 13% after the cosmetics retailer raised its annual profit forecast, signaling a revival in demand for perfumes and makeup during the holiday shopping season.

Lululemon Athletica (NASDAQ:LULU ) stock climbed 16% after the sportswear maker increased its full-year forecasts, betting on resilient demand for its athletic wear in the U.S. during the holiday shopping season and continued strength in its international business.

Gitlab (NASDAQ:GTLB ) stock rose 6% after the software company reported fiscal third-quarter results and guidance that topped expectations and announced a new CEO.

DocuSign (NASDAQ:DOCU ) stock climbed over 20% after the electronic signature company raised its 2025 revenue forecast, after a strong third-quarter earnings report. Brent on course for weekly loss

Oil prices slipped lower Friday, with the global benchmark Brent on course for substantial weekly losses on concerns of slowing demand after OPEC+ extended its current run of supply cuts until well into 2025.

By 09:50 ET, the US crude futures (WTI) dropped 1.3% to $67.42 a barrel, while the Brent contract fell 1.2% to $71.24 a barrel.

For the week, Brent was on track to drop around 1.5%, while WTI hung on to marginal gains.

The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+,  delayed the start of its oil output increases by three months until April and extended the full unwinding of cuts by a year until the end of 2026.

(Ambar Warrick contributed to this article.)

 

Source: Investing.com