US Stocks erased early morning losses buoyed by comments by a Federal Reserve official on the likely implication of the disappointing jobs data released Friday.
The worse than expected March non-farm payrolls data released by the Labor Department n Friday had weighed stocks down at the beginning of trading on a quiet subdued day with most overseas markets remaining closed.
The Labor Department reported Friday that the country had added just 126,000 jobs in March, the lowest hiring pace in more than 15 months.
Monday was the first chance investors had to react to the disappointing data with the markets closed on Friday.
“The market’s taking that jobs number a little bit better today,” Brian Fenske, head of sales trading at ITG,” told the Wall Street Journal.
“It’s pretty quiet today. It’s just a little bit of a holiday lull.”
Friday’s holiday-shortened futures trading session had shown notable decline with the 126,000 jobs added well short of the consensus 248,000 consensus forecast.
The Dow Jones Industrial Average advanced 100points 0r 0.5% to 17,859 points to rebound from decline by more than 116 points just after the bell.
The S&P 500 Index edged p 12 points or 0.6% to 2080 while the Nasdaq Composite inched up 22 points or 0.5% to 4,908.
The market strength was attributed to comments by New York Fed President William M Dudley that once the Fed starts to tighten, the pace of interest hikes was likely to be “shallow” and that the current perceived economy weakness was only due to temporary conditions.
“The Federal Reserve’s Dudley has come out with several dovish statements over the last several hours which in part has put a floor in the overall markets,” Chad Morganlander, a money manager at Stifel, Nicolaus & Co., which oversees about $170 billion, told Bloomberg.
“Market speculators and economists had time to absorb the news and they believe that much of the data has been somewhat transitory in nature.”
To contact the reporter of this story; Jonathan Millet at firstname.lastname@example.org