Stocks opened mainly higher Friday, following a positive November payrolls report and edgy international trade ahead of Sunday's constitutional referendum in Italy.
The Dow industrials fell 0.1% while the S&P 500 rose 0.2% and the Nasdaq 0.3%. Small caps were lower, with the Russell 2000 off 0.6%.
For the week, the Nasdaq headed into Friday down 2.7% and the S&P 500 off 1% — both tacking toward their first decline in three weeks. The Dow was up 0.2%, and the Russell 2000 was down 2.5% vs. last Friday's close.
Payrolls Solid; Fed Governors, Oil Rig Count On Deck
U.S. nonfarm employers added 178,000 new workers during November, the Labor Department reported, up sharply from 161,000 new hires in October and outpacing estimates for 170,000 added jobs. Private companies did the bulk of the hiring, adding 156,000 employees, vs. expectations for hirings to increase to 155,000.
The unemployment rate dropped to 4.6%, down from 4.9%, easily besting the consensus forecast for no change. The work week and participation rates held steady.
Two Federal Reserve Board governors are scheduled to speak this morning: Lael Brainard at 8:30 a.m. ET and Daniel Tarullo at 12:30 p.m. ET. Baker Hughes (BHI) delivers its weekly rig count report at 1 p.m.ET.
In Motion: Five Below, Ulta Beauty, Workday, Starbucks
Five Below (FIVE) rung up an 10% gain at the open. The dollar store chain reported third-quarter earnings just above analyst targets. Revenue rose 18% but just missed views. Fourth-quarter guidance was in line with expectations. But management said it was pleased with the start of the holiday shopping season, and had launched an expanded TV advertising campaign. Five Below shares have been working on the right side of a four-month consolidation.
Ulta Beauty (ULTA) jumped 4%. A 26% gain in earnings and a 24% sales advance outpaced analysts' third-quarter estimates. The IBD 50 stock broke out past the 268.88 buy point in a double-bottom base at the start of trading.
Human resources software provider Workday (WDAY) clocked a 16% loss. The company reported a solid third-quarter sales and earnings beat, and issued fourth-quarter guidance above analyst views. But several large contracts expected to close in the fourth quarter had been pushed back, management said, due to political and economic uncertainties. Shares gapped well below the 200-day moving average, ruining a base that Workday was forming.
Starbucks (SBUX) slipped 1.5% after founder Howard Schultz said he would turn over his chief executive role to President and Chief Operating Officer Kevin Johnson. Schultz, who will maintain his position as company chairman, said he plans to focus his efforts on Starbucks' high-end coffee shops, a new strategic initiative for the company. Starbucks is forming the right side of a 13-month-old consolidation.
Oil Rally Pauses, Bonds Rise; International Trade Weak
Oil trimmed its early declines to 0.2%, leaving West Texas Intermediate near $51 a barrel and up more than 9% for the week. Gold climbed 0.2% to above $1,171 an ounce, 4% below last Friday's settle price. The dollar was down vs. the yen and up slightly against the euro. Bonds gained, sending the 10-year yield down 2 basis points to 2.42%.
Overseas markets were unanimously lower. China's Shanghai Composite ended down 0.9% Friday and the Hong Kong Hang Seng Index dropped 1.1%. In Japan, Tokyo's Nikkei 225 slipped 0.5%.
Europe's markets came off their lows in early afternoon trade, with the CAC 40 in Paris off 1.2%, Frankfurt's DAX down 0.8% and the FTSE 100 in London showing a 0.8% loss.
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