U.S. equities finished modestly higher Friday, with major indexes scoring gains for the week to end at their highest levels in years as lackluster August jobs data fueled speculation that the Federal Reserve may start another round of monetary stimulus.
“The recent market rally has been the result of massive short-covering and anticipation of more liquidity courtesy of the Fed,” said Jeffrey Sica, president and chief investment officer of Sica Wealth Management. “The jobs report of today reinforces the likelihood of more economic stimulus being initiated in the September meeting.
“(But) the market celebration will be short-lived as investors question whether another round of money printing is too little or too late to help the economy.”
The Dow Jones industrial average rose 14.64 points, or 0.1 percent, to 13,306.64. The blue-chip benchmark closed at its highest level since December 2007, with a 1.7 percent gain for the week.
Shares of Caterpillar Inc. rose 3.9 percent and Bank of America Corp. added 5.4 percent, leading the gains on the index, while Kraft Foods Inc. saw the biggest decline, down 5.5 percent after providing an outlook for its grocery business.
The S&P 500 index rose 5.8 points, or 0.4 percent, to 1,437.92, closing up 2.2 percent from a week ago. It marked its highest close since January 2008.
Within the index, mining and steel companies were standouts, finding support from fresh merger talks, demand from China and higher commodity prices. Alpha Natural Resources Inc. shares rose 17 percent.
The Nasdaq composite index inched up 0.61 point to 3,136.42 Friday, tacking on 2.3 percent for the week to log its highest finish since November 2000.
Google Inc. shares crossed the $700 mark Friday for the first time since December 2007. The stock closed up 1 percent at $706.15.
Contributing to the trading tone, the government reported that U.S. employment growth slowed sharply in August as nonfarm payrolls expanded by a seasonally adjusted 96,000 in August — well below estimates. Economists surveyed by MarketWatch had expected an increase of 125,000.
