The Dow Jones Industrial Average ended the week near records following a rally in banking and energy stocks earlier in the week.
Despite trading near records, the Dow ended the week up just 0.10%. The S&P 500 and Nasdaq notched weekly losses of 0.97% and 2.65%, respectively.
The financials sector was one of the best performers in the past week given a boost from President-elect Donald Trump's Cabinet picks, many of which were seen as Wall Street-friendly. Steve Mnuchin, nominated Treasury secretary on Wednesday, is a veteran banker and former executive of Goldman Sachs and suggested he would roll back portions of the Dodd-Frank financial rules. The 2010 legislation was introduced as a measure to ensure banks were strong enough to weather future financial crises.
Other picks include industrialist billionaire Wilbur Ross for commerce secretary and millionaire Betsy DeVos for education secretary. The Washington Post suggested it could be the richest administration in modern American history, far surpassing George W. Bush's first Cabinet which had a total net worth of roughly $250 million.
Mnuchin and Ross both "need to be confirmed by the Senate, which looks likely as the appointments will need only a simple majority, which the Republicans have," BNP Paribas analysts wrote in a note. "Both Mr. Mnuchin and Mr. Ross have voiced support for Mr. Trump's plans to cut tax, roll back regulation and renegotiate trade deals."
Dow components Goldman Sachs (GS - Get Report) and JPMorgan (JPM - Get Report) reported weekly gains of more than 5% and 2%, respectively. S&P 500 components Wells Fargo (WFC - Get Report) , Bank of America (BAC - Get Report) , and Morgan Stanley (MS - Get Report) also posted gains for the week.
Crude oil notched weekly gains of more than 12% -- the biggest weekly jump in nearly six years -- after major oil-producing nations reached a deal to limit output. On Wednesday, the Organization of Petroleum Exporting Countries reached an agreement to trim production by 1.2 million barrels a day, its first cut since 2008.
"The OPEC put its differences to a side and got its act together to resume its traditional role as a price fixer," said Fawad Razaqzada, market analyst at Forex.com. "There's so much upside potential left in the rally, in my view, because the market will now be in balance earlier than would have been the case without a deal."
Hopes for a deal had gone back and forth in recent weeks as individual OPEC members raised doubt over their cooperation. Some members, including Iran, were hesitant to cede market share and suggested the countries that had raised production in recent months should bear the burden of a cut.
The chances of a rate hike when the Federal Reserve members meet in mid-December were solidified after a stretch of positive economic data this week, capped off by Friday's jobs report. The U.S. economy added 178,000 jobs in November, according to the Labor Department, just slightly higher than an anticipated increase of 174,000. The U.S. unemployment rate fell to 4.6% from 4.9%, hitting its lowest level since August 2007. Average wages fell 0.1% after reaching their best level since July a month earlier.
Initial jobless claims rose in the past week to their highest level in five months, though remained at multi-year lows. The number of new claims for unemployment benefits rose by 17,000 to 268,000 in the week ended Nov. 26, according to the Labor Department. Analysts had anticipated a reading of 255,000. The less-volatile, four-week average climbed 500 to 251,500.
The Fed's "Beige Book," an anecdotal snapshot of economic conditions in the 12 Fed districts, backed up recent data showing improvements in the U.S. economy. The central bank said the economy continued to expand, though there were no signs of an extra bump in activity after the U.S. presidential election. San Francisco, Minneapolis and Boston reported a "moderate pace" of growth, Atlanta, Chicago, St. Louis and Dallas showed "modest growth" and Philadelphia, Cleveland and Kansas City saw a "slight pace."
The U.S. economy grew at an annual 3.2% pace in the third quarter, according to the second estimate of growth from the Bureau of Economic Analysis. The initial estimate showed an increase of 2.9%, the best quarterly gain in two years. Economists had anticipated the measure to increase 3%. Consumer spending rose 2.8% over the third quarter, while exports increased 10.1%.
In retail earnings news, Express (EXPR - Get Report) issued guidance for its current quarter weaker than analysts anticipated. Fourth-quarter same-store sales are targeted to fall in the "negative low double digits" percentage range, sharper than a forecast 7.6% decline.
Dollar General (DG - Get Report) reported disappointing same-store sales and earnings for its recent quarter. The company said a weaker quarterly performance was tied to reductions in food-stamp benefits. Guess? (GES - Get Report) reduced its full-year profit target following a disappointing recent quarter. The retailer reported quarterly revenue rose 2.9% to $536 million, below its previous guidance of 5% to 8% growth.
Tiffany (TIF - Get Report) posted an increase in third-quarter profit that came in above estimates. Same-store sales fell 2%, better than an estimated decline of 4.1%, as sales in Japan skyrocketed. Same-store sales in Japan unexpectedly surged 20%, far better than an estimated 4.3% decline.