After another solid monthly jobs report, technology companies on Friday again led the way as US stocks rose for the fourth day in a row to start this year. They are on their longest New Year winning streak in eight years.
The US Department of Labor said employers last month added 148,000 jobs.
That was a bit less than experts expected, but still underscored the continued health of the US economy.
Wages grew and factory managers received more new orders than in any month since 2004.
Consumer-focused and healthcare companies also rose, and the weaker US dollar gave industrial firms such as Boeing Co and basic materials makers a lift.
Wages and worker productivity are rising at about the same rate, said Ed Keon, managing director and portfolio manager of QMA, a fund manager owned by Prudential Financial Inc.
He said if that trend continues, company profits should stay solid and inflation would not be much of a risk to the economy.
Productivity growth has been weak in the past few years, but it jumped 3 percent in the third quarter of last year.
New technologies might now be helping businesses in a bigger way, Keon said.
“It’s possible that we’re on the verge of a new productivity revolution,” he said. “If we are, that’s good news for wages, it’s good news for profits, it’s good news for economic growth and it’s good news for the stock market.”
The S&P 500 on Friday gained 19.16 points, or 0.7 percent, to 2,743.15, rising 2.6 percent from a close of 2,673.61 on Dec. 29 last year.
The Dow Jones Industrial Average on Friday added 220.74 points, or 0.9 percent, to 25,295.87, up 2.3 percent from 24,719.22 a week earlier.
The NASDAQ Composite on Friday rose 58.64 points, or 0.8 percent, to close at 7,136.56, jumping 3.4 percent from 6,903.39 on Dec. 29.
The Russell 2000 index of smaller-company stocks on Friday rose 4.29 points, or 0.3 percent, to 1,560.01 for a gain of 0.7 percent from 1,549.06 a week earlier.
The Dow Jones Industrial Average on Thursday closed at more than 25,000 points for the first time and the NASDAQ breached 7,000 points earlier in the week.
The last time stocks rose for at least four consecutive days to start a new year was in 2010, when the S&P 500 finished higher for six days in a row. It rose 1.9 percent over that run.
While job growth has slowed somewhat with the US economy close to full employment, solid economic growth in both the US and major countries overseas is still supporting more hiring.
Apple Inc gained US$1.97, or 1.1 percent, to US$175 and Alphabet Inc, Google’s parent company, picked up US$14.53, or 1.3 percent, to US$1,110.29.
Chipmaker Xilinx Inc jumped US$3.66, or 5.2 percent, to US$74.15 and eBay Inc added US$1.12, or 2.9 percent, to US$39.69.
Consumer-focused and healthcare companies also stand to benefit from sustained economic growth.
Amazon.com Inc climbed US$19.55, or 1.6 percent, to US$1,229.14, while Netflix Inc advanced US$4.36, or 2.1 percent, to US$209.99.
Used car retailer CarMax Inc edged up US$2.79, or 4.1 percent, to US$71.04.
Among healthcare companies, Align Technology Inc, which doubled last year, surged US$7.77, or 3.3 percent, to US$241.07 and contact lens and surgical products maker Cooper Companies Inc gained US$6.95, or 3.1 percent, to US$230.50.
With the holiday season in the rearview mirror, companies began to report their most recent results.
Wine, liquor and beer maker Constellation Brands Inc fell US$5.91, or 2.6 percent, to US$219.88 after its third-quarter report disappointed investors.
Retailer Francesca’s plunged US$1.55, or 20.7 percent, to US$5.95 after it said it struggled over the holidays as fewer people went to stores and its shoppers spent less. It cut its profit and sales forecasts.
Barnes & Noble Inc fell to its lowest price since 1994 after the bookseller said its sales slumped over the holidays.
The struggles were not limited to its physical stores, as online sales dropped 4.5 percent.
That was partly due to Amazon continuing to win over more people to its Prime membership program.
Barnes & Noble sank US$0.90, or 13.8 percent, to US$5.60.
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