The number of Americans who applied for unemployment benefits at the end of November fell to the lowest level in seven months and returned close to a 50-year low, but the sharp decline in jobless claims likely stems in part from the Thanksgiving holiday.
*U.S factory orders rose 0.3% in October, the Commerce Department said Thursday, for the first gain in three months.
The market now awaits the monthly U.S. Labor Department report on payrolls and unemployment due Friday. The MarketWatch consensus forecast is for a gain of 180,000 jobs in November.*
Traders also awaited Friday’s U.S. jobs report, which may signal that both the labor market and consumers remain buoyant enough to sustain the expansion. That would validate Federal Reserve Chairman Jerome Powell’s view that rates can stay on hold following three cuts. But it could also reduce the urgency for a deal with China, given that escalating levies have so far failed to significantly dent employment.
“Should the jobs report come in reasonably healthy and the trade negotiations keep moving forward, December will also likely be a better month than the headlines at the start of the month suggested,” Brad McMillan, chief investment officer at Commonwealth Financial Network, said. “December is historically a strong month for markets, and a Santa Claus rally remains possible, despite the volatility at the start of the month.
Elsewhere, oil swung between gains and losses as OPEC reached an agreement that adjusts its official production targets, but removes few barrels from a market that’s forecast to return to surplus early next year.
OPEC and its allies have recommended cutting production by 500,000 barrels a day, on top of the current output-cut agreement, ahead of the official gatherings of major oil producers in Vienna over the next two days.
Nike Inc gained 2.2% following Goldman Sachs’ upgrade of the sportswear maker’s stock to “buy” from “neutral.”
Volume on U.S. exchanges was 6.42 billion shares, compared with the 6.71 billion average over the last 20 trading days.
Here are some key events coming up this week :
• U.S. Labor Department figures are set to show Friday that 184,000 workers were added to nonfarm payrolls last month -- one of the highest estimates this year ahead of a jobs report.
Currencies :
• The Bloomberg Dollar Spot Index declined 0.2%.
• The euro climbed 0.2% to $1.1098.
• The Japanese yen strengthened 0.1% to 108.77 per dollar.
Bonds :
• The yield on 10-year Treasuries climbed two basis points to 1.80%.
• Germany’s 10-year yield advanced two basis points to -0.29%.
• Britain’s 10-year yield increased three basis points to 0.773%.
Commodities :
• The Bloomberg Commodity Index gained 0.3%.
• West Texas Intermediate crude settled at $58.43 barrel.
• Gold advanced 0.1% to $1,481.20 an ounce.
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