US stocks ended the week at new all time as the weak jobs report pushed back investors’ expectations for any changes in policy by the Fed. The S&P 500 gained 1.3% and the Dow surged 2.7% for the week. Abroad, the FTSE All World Ex US climbed 1.9% for the week. The yield on the 10-year Treasury yield fell over the week to finish at 1.58% down from 1.65%.
US Job growth dropped sharply in April with 266,000 jobs added. Well below the 1 million jobs expected. In addition, March’s hiring level was revised down. The unemployment rate rose to 6.1% in April from 6.0% in March.
The ISM purchasing managers index for April showed growth, but fell short of expectations.
With 85% of companies in the S&P 500 reporting earnings to date they collectively have seen a 50% increase in profits compared to the first quarter a year ago.