Hello traders everywhere. The S&P 500 came into Friday's trading session down -0.7% for the week, but Friday's strong gains helped the index recover those losses, and it was able to squeak out an increase of +.16%. The DOW and NASDAQ each entered Friday, trading down more than -1% week to date. They were able to end the week down only down -0.1% each for the week after the session began.
The reason stocks were able to shake off the early week losses was U.S. job growth that easily topped analyst expectations, which helped Wall Street wrap up a choppy week of trading on a high note. However, the NASDAQ is the only index of the three that was able to avoid triggering a red weekly Trade Triangle this week.
The U.S. economy added 266,000 jobs in November, according to figures released by the Labor Department. Economists polled by Dow Jones expected a gain of 187,000. The unemployment rate fell to 3.5%, matching its lowest level since 1969.
Friday's report comes as investors grappled with mixed signals on the U.S. - China trade front this week. China started the week, saying it wants tariffs to be canceled as part of a "phase one" trade deal. President Donald Trump later said he could hold off on any deal until after the 2020 U.S. election.
That rhetoric sent stocks tumbling to start the week. However, Trump said Thursday the two countries were inching closer to a trade deal. China also extended an olive branch to the U.S. on Friday by waving import tariffs on some American pork and soybeans shipments.
But Larry Kudlow, director of the National Economic Council, told CNBC's "Squawk on the Street" that Trump is prepared to "walk away" from the negotiations if some conditions are not met. "The president has said that if we can not get the enforcement and the assurances, then we will not go forward," Kudlow said.
Both sides have less than ten days to go before Washington is poised to impose even more tariffs on Chinese goods. Tariffs on another $156 billion in Chinese goods are set to go into effect on Dec. 15.
Key Levels To Watch Next Week:
- S&P 500 (CME:SP500): 3,154.26
- Dow (INDEX:DJI): 28,174.97
- NASDAQ (NASDAQ:COMP): 8,435.40
- U.S. Dollar (ICE:DX): 98.54
- Gold (NYMEX:GC.G20): 1,489.90
- Crude Oil (NYMEX:CL.F20): 56.28
- Bitcoin (BITCOIN:BITSTAMPUSD): 8,631.60