Dow Jones Industrial Average Adds 46 Points On Strong Jobs Report

How Did the Stock Market Do Today?

Dow Jones: 17,910.33; +46.90; +0.26%

S&P 500: 2,099.20; -0.73;-0.04%

Nasdaq: 5,147.12; +19.38;+0.38%

The Dow Jones Industrial Average on Friday added 46 points as markets now anticipate the U.S. Federal Reserve will tighten monetary policy and raise rates next month for the first time since 2006. The odds of a December interest rate hike jumped to 69.8%, according to CME FedWatch, after the U.S. Labor Department released a very strong employment report for the month of October. The U.S. unemployment rate fell to 5% for the first time since April 2008, and it represents the level at which the central bank considers “full employment.” Nonfarm payrolls added 271,000 jobs last month. In addition, weekly wages increased by an average of $0.09.

Meanwhile, in what took seven years to decide, the Obama administration announced it has formally rejected the Keystone XL Pipeline proposal, marking a significant win for environmentalist groups that have long lobbied against the project. The pipeline – run by TransCanada Corp. (NYSE: TRP) – would have transported more than 850,000 barrels of crude oil each day from Alberta, Canada to the U.S. Gulf Coast refining network. Shares of TRP slumped more than 5% on the news.

Top Stock Market News Today

Stock Market News: Seven of 10 S&P sectors were in the red today, with utilities stocks showing a massive slump of 3.2% on the day. Shares of Consolidated Edison Inc. (NYSE: ED) dragged down utilities after the company missed top and bottom line earnings expectations. Meanwhile, speculation of a December rate hike pushed the financial sector up roughly 0.6%. The “Too Big to Fail” banks saw the strongest gains on the day. Shares of JPMorgan Chase & Co. (NYSE: JPM) added 3%, and Bank of America Corp. (NYSE: BAC) gained 3.7%. Shares of Citigroup Inc. (NYSE: C) saw a 3.2% bump, and Goldman Sachs Group Inc. (NYSE: GS) added 3.7%.

Oil in Focus: Oil prices slumped as the dollar showed solid gains against a basket of international currencies. The strengthening greenback offset news that the U.S. rig count fell by another six last week, according to Baker Hughes Inc. (NYSE: BHI). December WTI oil prices slipped 2% to hit $44.29 per barrel, while Brent crude prices dipped 1.2% to hit $47.42.

On Tap Next Week: Interest rate chatter will continue on Monday in the wake of today’s strong employment report. Investors will pay attention to a speech by Boston Federal Reserve Bank President Eric Rosengren. On the international front, pay attention to monthly trade figures from Germany, as markets look for clues into the nation’s exposure to slowing economic growth. Companies reporting earnings include Priceline Group Inc. (Nasdaq: PCLN), Rackspace Hosting Inc. (NYSE: RAX), Jazz Pharmaceuticals Plc. (Nasdaq:JAZZ), Lions Gate Entertainment Corp. (NYSE: LGF), Hertz Global Holdings Inc. (NYSE: HTZ), and Atwood Oceanics Inc. (NYSE: ATW).