Stocks Edge Higher, Bonds Rise After Jobs Data; Dow Tops 29K

(Bloomberg) — U.S. stocks edged higher, while Treasuries rose after the latest jobs report confirmed that the world’s largest economy remains on solid footing. The dollar fell versus major peers.

The inched toward a fresh record after hiring data slightly missed estimates for December, while the unemployment rate remained unchanged at 3.5%. The benchmark is on track for a weekly gain as the situation in the Middle East held a tenuous calm.

The climbed above 29,000 for the first time ever intraday, but pulled back from that level.

Treasuries pushed higher as the wage data erased any inflation worries. Futures traders maintained the amount of easing they expect from the Federal Reserve.

The jobs data ultimately did little to alter investor views on the strength of the economy or the Fed’s next step. With stocks near all-time highs, markets continue to look past the flare-up in tensions with Iran and focus on the potential for a pickup in global economic growth.

“This is the opposite of a game-changer. It’s very consistent with everyone’s views going into this report, the Fed stays on hold and the economy is slowing down,” said Nela Richardson, an investment strategist at Edward Jones. “We’re consistent on the overall view the Fed stays pat on short-term rates this year. If anything, this report tilts the Fed a little bit towards being more accommodative, not less.”

Elsewhere, European shares rose, while bonds in the region rose. Gold turned higher, while West Texas oil dropped below $59 a barrel.

These are moves in major markets:

Stocks

• The S&P 500 Index rose 0.2% as of 10:02 a.m. New York time.
• The Index rose 0.1%.
• Germany’s gained 0.3%.

Currencies

• The Bloomberg Dollar Spot Index fell 0.1%.
• The British pound was steady at $1.3069.
• The euro fell 0.1% at $1.1096.
• The Japanese yen weakened 0.1% to 109.63 per dollar.

Bonds

• The yield on 10-year Treasuries fell one basis point to 1.84%.
• Britain’s 10-year yield fell four basis points to 0.785%.
• Germany’s 10-year yield declined less than one basis point to -0.18%.

Commodities

• West Texas Intermediate crude fell 0.6% to $59.23 a barrel.
• Gold rose was steady at $1,553.80 an ounce.

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