Investors took bad news as good news, powering the Dow and S&P 500 to record highs Friday despite a report showing an unexpectedly sharp slowdown in jobs growth.
That dour data eased Wall Street’s concerns over rising inflation and potentially higher interest rates, fueling rate-sensitive mega-cap growth stocks.
Ladenburg Thalmann Asset Management CEO Phil Blancato:
“When you look at today's market action, it’s somewhat surprising that we didn't get a wide- based sell-off based on that real miss on the jobs market. However, let's not forget there are trillions of dollars on the sideline waiting for an opportunity to invest. And I think some of that made it into the market. Remember, bond yields cooled, which is fuel for the equity market so it’s a pendulum there.”
The Dow and S&P ended roughly seven-tenth percent higher. The Nasdaq rose 0.9%.
For the week, the Dow and S&P gained ground but the Nasdaq declined one-and-a-half percent.
Roku shares rocketed 12% higher. Strong growth in advertising and content distribution helped push the streaming device maker’s revenue far beyond analysts’ estimates.
A slew of analysts raised their price target on Expedia on hopes the online travel company would continue to benefit from the recovery in the travel industry. Shares jumped 5%.