Stocks End Higher as Jobs Offset China Tariff Worries

Friday's Market Minute

  • China is hitting back on threats of stiffer duties on exports to the U.S. with tariffs of its own on $60 billion in U.S. goods. 
  • Apple Inc. (AAPL)   held on to recent gains that made it the first U.S. company to reach a $1 trillion valuation. 
  • Speaker maker Sonos Inc. (SONO) is up big Friday after closing its debut Thursday up nearly 33%. 

U.S. equity markets ended higher as the latest jobs report showed a steady stream of hiring gains and a solid outlook for economic growth, offsetting concerns about an expanding trade war between the U.S. and China.

The Dow Jones Industrial Average  rose 0.5% to 25,463, while the S&P 500  gained 0.5% and the Nasdaq  edged up 0.1%.

Nonfarm payrolls rose by 157,000, the Labor Department's Bureau of Labor Statistics said Friday in a statement. That figure fell shy of the 192,500 average estimate of economists in a FactSet survey, and also represented a slowdown from the 213,000 jobs added the prior month.

Meanwhile, China hit back at the threat of new U.S. trade levies Friday by slapping fresh tariffs on $60 billion worth of American made goods in the latest escalation of tensions between Washington and Beijing.

China's Commerce Ministry said the new tariff charges would range between 5% and 25% and will be imposed immediately in order to "guard its interests." Items included on the list include soybean oil, peanut oil, coffee, wheat flour and spirits, as well as steel and iron ore products.
 
Apple shares edged up 0.2% as the company's valuation held above the  $1 trillion mark that it breached on Thursday. 
 
Kraft Heinz Company ( KHC) shares were up 8.6% Friday after the consumer foods maker reported adjusted earnings of 94 cents per share on revenue of $6.69 billion. Analysts were expecting the company to report earnings of 92 cents per share on revenue of $6.59 billion. However, the company also reported that sales in the U.S., the company's biggest market, fell 1.9% to $4.51 billion. 
 
Shares of Sonos Inc. rose 5% to $20.83 a day after the company debuted on the Nasdaq. The wireless speaker maker rose more than 30% in its debut. TheStreet's Scott Gamm sat down with Sonos's CEO, Patrick Spence for the latest. When asked why Sonos debuted at $15 when the company was originally priced at $17 to $19 a share, Spence responded, "Really, it was the tech selloff over the past couple of days. We wanted to be prudent."
 
Shares of retail sales website Groupon Inc. ( GRPN)   rose 2.5% after the company reported adjusted earnings of 2 cents per share, missing analysts' expectations by a penny. Revenue of $617.4 million was also short of $630.8 million expectations. 
 
Shares of video game maker Take-Two Interactive Software Inc. ( TTWO)  rose 9% to $123.41 after the company reported earnings of 62 cents per share on revenue of $288.33 million. While analysts were looking for earnings of 64 cents on revenue of $259.67 million.

European markets rose across the board led by the FTSE 100, which gained 0.74%, the Dax was up 0.44%, and the CAC 40 is gaining 0.11% with about two hours left in trading.

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