U.S. stocks end week higher; S&P, Dow hit new records

NEW YORK (MarketWatch) — U.S. stocks eked out marginal gains amid thin volumes on Friday, but it was still enough to register fresh record highs for two of the three main benchmarks, capping a third straight week of gains.

The S&P 500 and Dow Jones Industrial Average closed at record highs for the third consecutive day. However, investors' reaction to the latest employment data, showing 214,000 new jobs were added last month was mostly muted.

The U.S. Bureau of Labor Statistics report showed that the economy added 214,000 jobs in October, while the unemployment rate ticked down to 5.8% — a broadly positive reading. Although the headline number was below the consensus of 243,000, the upward revisions to the previous two months more than made up for it.

The latest jobs data should offer Wall Street investors a confidence-building, Goldilocks scenario since the data neither points to a stalling recovery nor one that is overheating.

The S&P 500












SPX, +0.03%










 closed fractionally higher at a new record level of 2,031.92 and gained 0.7% over the week. Dow industrial












DJIA, +0.11%










 added 19.46 points, or 0.1% to 17,573.93 and ended the week 1% higher.

Meanwhile, the Nasdaq Composite












COMP, -0.13%










 closed 5.94 points, or 0.1%, lower at 4,632.53 and was flat over the week.

"The [jobs] report is positive. The economy is still adding more than 200,000 jobs a month, but at the same time there is no indication that it is overheating as the wage growth remains muted. There is no reason for the Fed to get hawkish," said Brad Sorensen, director of market and sector research at Schwab.

The Bureau of Labor Statistics report showed the U.S. created 214,000 jobs in October, nudging the unemployment rate down a notch to 5.8%, as many companies added workers to gear up for the holiday season. The economy has now added 200,000 workers or more for nine straight months, a feat last accomplished in 1994.

Analysts greeted the report as a positive development, pointing to revisions and other details, such labor participation: