Open: Nasdaq flat but Dow and S&P advance after buoyant jobs report

Open: Nasdaq flat but Dow and S&P advance after buoyant jobs report

The Dow Jones headed to another new high in early deals as investors were reassured by July’s jobs report.

The Dow Jones was up 9 at 22,035 after closing at a record high yesterday. The S&P 500 was up a couple of points at 2,474 but the tech-heavy Nasdaq Composite was flat.

The non-farm payrolls number was ahead of expectations; 209,000 jobs were added in July, versus expectations of an increase of around 180,000.

“After seven straight record closes, the Dow’s reaction to Friday’s solid US jobs data has been balanced rather than breathless – with much of the cheer-leading left to President Trump, but nevertheless there’s much to be reassured by in this comprehensively strong jobs print,” suggested Marcus Bullus, trading director of MB Capital.

“Yes the headline figures are impressive, both on the job creation and unemployment rate fronts, but the details are arguably more important – the participation rate is creeping up as more Americans return to work, and average wages continue their solid upward progress.

“With more Americans working, and more Americans earning more, the US’s consumer-led growth remains firmly on track – powering equities into a sustained bull run.

“Market watchers have so far been able to ignore the President’s increasingly stalled policy agenda and the tightening net of Robert Mueller’s Russia probe, but markets can only look past political developments for so long.

“With the July jobs report showing the US economy continues to power ahead, the factors most likely to derail the markets’ continuing run of confidence are now set to come from Washington rather than Wall Street,” Bullus concluded.

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