Signs of a turnaround in Europe, China and better-than-expected US economic growth propelled major US stock indices to record levels and drove gains in European stocks. US GDP grew more than expected but remained at a tepid 1.7% annualized pace of expansion. US jobs data were mixed, as the monthly government report showed an increase of 162,000 jobs in July, fewer than expected, but the unemployment rate dipped to 7.4%. Weekly initial claims for jobless benefits fell to a five-year low. The lukewarm monthly jobs report makes it less likely the US Federal Reserve will act soon to begin tapering its bond-buying program.
Fewer unemployed workers in Europe and an increase in regional manufacturing activity combined to create a brighter mood in the region. Individual country data from Germany and the United Kingdom were also positive, as UK factory activity and house prices rose. Chinese government manufacturing data indicated growth, but an HSBC report pointed to contraction in July. Strong earnings reports from Japanese firms reflected the turnaround generated by Japan's aggressive easing policies.
Find out what's happening in Walnut Creekwith free, real-time updates from Patch.
U.S. stocks tallied small gains on Friday, lifting the Dow industrials and S&P 500 to record closes, as bonds rallied and the dollar fell after the July jobs report fell short of forecasts. Treasury's rallied after the jobs report, sending the yield on the benchmark 10-year note down 11 basis points to 2.604%. The dollar fell against the currencies of major U.S. trading partners.
Find out what's happening in Walnut Creekwith free, real-time updates from Patch.
After trading lower for most of the day, U.S. stocks erased losses in the afternoon to end higher. Erasing a 69-point drop, the Dow Jones Industrial Average gained 30.34 points, or 0.2%, at 15,658.36, its 30th record close this year and leaving it up 0.6% on the week. The blue-chip index on Thursday hit an all-time intraday high of 15,650.69 and finished at 15,628.02.
A day after clearing 1,700 for the first time and ahead 1.1% from last Friday's close, the S&P 500 index climbed 2.80 points, or 0.2%, to 1,709.67, its 25th record finish this year.
The Nasdaq Composite rose 13.84 points, or 0.4%, to 3,689.59, giving it a 2.1% weekly gain. The technology-heavy index on Thursday ended at a more than 13-year high of 3,676.78, nearly 1,400 points from its all-time closing high of 5,048.62 on March 10, 2000.
Advancers pulled just ahead of decliners on the New York Stock Exchange, where 676 million shares traded. Composite volume cleared 3.1 billion.
