NEW YORK - Oil jumped more than 3 percent to over $116 a barrel and U.S. stocks mostly rose on Friday as U.S. jobs data that was much better than economists' weak predictions eased fears the United States was sliding into a deep recession.
The dollar jumped to two-month highs versus the yen and against a basket of currencies after economic reports bolstered expectations that the Federal Reserve is nearing the end of a rate-cutting cycle, enhancing the U.S. currency's appeal.
U.S. Treasury debt prices fell on data showing that 20,000 U.S. jobs were lost in April, well below economists' forecast for a loss of 80,000, and the unemployment rate unexpectedly improved to 5.0 percent, from 5.1 percent in March. The data raised hopes the U.S. economic downturn is not gathering steam, causing traders to pare holdings of low-risk government bonds.
"This week's data have not been consistent with the deep recession which some people have been calling for," said Michael Pond, Treasury strategist with Barclays Capital in New York.
While the government reports eased fears that the U.S. economy was at a growing risk of slipping into a deep recession, some data did highlight weakness. Inventories of unsold manufactured goods, for example, climbed to the highest level since the government started records in 1992.
The Dow and the benchmark Standard & Poor's 500 Index closed higher after see-sawing between positive and negative territory through much of the day.
The Nasdaq fell as technology shares slumped after Sun Microsystems a business computer maker, reported an unexpected net loss and lower revenues late Thursday, causing several brokers to cut their ratings and share price targets.
Computer-related shares were dragged down by Sun, the world's fourth-largest business computer maker, including International Business Machines.
The Dow Jones industrial average .DJI was up 48.20 points, or 0.37 percent, at 13,058.20. The Standard & Poor's 500 Index .SPX was up 4.56 points, or 0.32 percent, at 1,413.90. The Nasdaq Composite Index .IXIC was down 3.72 points, or 0.15 percent, at 2,476.99.
European shares posted their third weekly gain, spurred by financials, after the U.S. jobs data suggested the world's largest economy was proving more resilient than expected.
Banks and other interest-rate sensitive stocks such as insurers were among the largest positive influences on the European market.
The FTSEurofirst 300 index of top European shares rose 1.7 percent to close at 1,361.36 points, bringing its gain for the week to about 2.6 percent.
Oil rose following three days of losses amid concerns that U.S. economic weakness would continue to blunt world oil demand.
"The numbers are still suggesting a mild recession but maybe they ease fears of a deep or prolonged downturn, and to that extent they would be supportive to the oil market," said Mike Wittner, global head of oil research at Societe Generale.
U.S. crude oil futures for June delivery CLc1 settled up $3.80 to $116.32, recouping a stretch of losses this week after Monday's record near $120 a barrel.
The dollar rose against major trading-partner currencies, with the U.S. Dollar Index .DXY up 0.39 percent at 73.539.
The euro fell 0.39 percent at $1.5409, and against the yen, the dollar rose 0.88 percent at 105.35.
In addition to Friday's jobs data, a Commerce Department report showing a stronger-than-expected 1.4 percent rise in March factory orders added to the positive market tone.
Data in Europe, meanwhile, pointed to slowing economies there. Euro-zone manufacturing activity fell to its slowest pace in nearly three years in April as Italy and Spain slipped further into contraction in the latest evidence of regional cooling.
U.S. gold futures ended higher, capping losses for the week of almost 4 percent. Bullion may have touched a bottom and may rebound based on positive market fundamentals, dealers said.
Traders pared their holdings of low-risk government bonds on the U.S. economic data.
The dollar jumped to two-month highs versus the yen and against a basket of currencies after economic reports bolstered expectations that the Federal Reserve is nearing the end of a rate-cutting cycle, enhancing the U.S. currency's appeal.
U.S. Treasury debt prices fell on data showing that 20,000 U.S. jobs were lost in April, well below economists' forecast for a loss of 80,000, and the unemployment rate unexpectedly improved to 5.0 percent, from 5.1 percent in March. The data raised hopes the U.S. economic downturn is not gathering steam, causing traders to pare holdings of low-risk government bonds.
"This week's data have not been consistent with the deep recession which some people have been calling for," said Michael Pond, Treasury strategist with Barclays Capital in New York.
While the government reports eased fears that the U.S. economy was at a growing risk of slipping into a deep recession, some data did highlight weakness. Inventories of unsold manufactured goods, for example, climbed to the highest level since the government started records in 1992.
The Dow and the benchmark Standard & Poor's 500 Index closed higher after see-sawing between positive and negative territory through much of the day.
The Nasdaq fell as technology shares slumped after Sun Microsystems a business computer maker, reported an unexpected net loss and lower revenues late Thursday, causing several brokers to cut their ratings and share price targets.
Computer-related shares were dragged down by Sun, the world's fourth-largest business computer maker, including International Business Machines.
The Dow Jones industrial average .DJI was up 48.20 points, or 0.37 percent, at 13,058.20. The Standard & Poor's 500 Index .SPX was up 4.56 points, or 0.32 percent, at 1,413.90. The Nasdaq Composite Index .IXIC was down 3.72 points, or 0.15 percent, at 2,476.99.
European shares posted their third weekly gain, spurred by financials, after the U.S. jobs data suggested the world's largest economy was proving more resilient than expected.
Banks and other interest-rate sensitive stocks such as insurers were among the largest positive influences on the European market.
The FTSEurofirst 300 index of top European shares rose 1.7 percent to close at 1,361.36 points, bringing its gain for the week to about 2.6 percent.
Oil rose following three days of losses amid concerns that U.S. economic weakness would continue to blunt world oil demand.
"The numbers are still suggesting a mild recession but maybe they ease fears of a deep or prolonged downturn, and to that extent they would be supportive to the oil market," said Mike Wittner, global head of oil research at Societe Generale.
U.S. crude oil futures for June delivery CLc1 settled up $3.80 to $116.32, recouping a stretch of losses this week after Monday's record near $120 a barrel.
The dollar rose against major trading-partner currencies, with the U.S. Dollar Index .DXY up 0.39 percent at 73.539.
The euro
In addition to Friday's jobs data, a Commerce Department report showing a stronger-than-expected 1.4 percent rise in March factory orders added to the positive market tone.
Data in Europe, meanwhile, pointed to slowing economies there. Euro-zone manufacturing activity fell to its slowest pace in nearly three years in April as Italy and Spain slipped further into contraction in the latest evidence of regional cooling.
U.S. gold futures ended higher, capping losses for the week of almost 4 percent. Bullion may have touched a bottom and may rebound based on positive market fundamentals, dealers said.
Traders pared their holdings of low-risk government bonds on the U.S. economic data.
