Investing.com - Stocks climbed higher at the start of trading Friday as a stronger-than-expected rise in nonfarm payrolls, combined with tame wage growth, encouraged investors.
The Dow Jones Industrial Average rose 0.58%, while the S&P 500 gained 0.57%. The Nasdaq Composite rose 0.61%.
All eyes were on the April employment report, where payrolls rose by 263,000, trouncing estimates for a gain of 181,00 compiled by Investing.com.
The unemployment rate fell to a 49-year low at 3.6%, while average hourly earnings rose less than expected, with a 0.2% gain.
That gave equity investors a clearer path to where economic growth and interest rates are heading this year.
“Solid growth dynamics have been neutralized by subdued inflation,” said Lena Komileva, chief economist with (g+)economics in London.
“Although the growth cycle has peaked, there is no sign of deceleration that can lead the economy into a recession.”
Komileva said the report was “a boon for equities”, hinting at a further extension of what is already the longest period of growth in recent history.
Among active stocks, Amazon.com (NASDAQ:AMZN) rose 2% after Warren Buffett said that Berkshire Hathaway had finally bought shares for the first time.
Tesla (NASDAQ:TSLA) advanced 0.7% after the company announced that it had priced its offering of 3.1 million shares at $243 per share and said that Chief Executive Officer Elon Musk will buy shares worth up to $25 million. Tesla’s stock hit a two-year low last week when it announced the capital raise.
Beyond Meat's (NASDAQ:BYND) second day as a public company got off to an altogether quieter start. After rising 163% on its debut, the biggest post-IPO pop seen in 10 years, the stock was up a mere 4.7%.
And Shake Shack (NYSE:SHAK) stock rose 0.2% after the company reported quarterly same-store sales that smashed expectations.