S&P 500 climbs to 5-year high as Treasuries erase drop on jobs

Apple Slumps

Apple Inc. slumped 2.1 percent for the second-biggest drop in the S&P 500. Deutsche Bank AG said supply-chain movements suggest iPhone and iPad production may be declining. Technology shares had the only decline among the 10 main S&P 500 groups.

S&P 500 futures extended gains before the open of exchanges in New York after the jobs data were released. Payrolls rose by 155,000 workers last month following a revised 161,000 advance in November that was more than initially estimated, Labor Department figures showed today. The median estimate of 82 economists surveyed by Bloomberg called for an increase of 152,000. The unemployment rate held at 7.8 percent, matching the lowest since December 2008.

“At 7.8, that tells us we still have an unemployment problem and the Fed will still be engaged,” Mohamed El-Erian, chief executive officer of Pacific Investment Management Co., said on Bloomberg Television.

Europe Stocks

Among European stocks, Fresnillo Plc, the world’s biggest primary silver producer, sank 4 percent in London trading as UBS AG downgraded the shares and the precious metal retreated. ThromboGenics NV jumped 3.3 percent after confirming the launch date for its Jetrea vision restoration treatment. Fresnillo Plc, the world’s biggest primary silver producer, slid 4 percent after UBS AG downgraded the shares. Randgold Resources Ltd. lost 4 percent as the price of the metal fell.

The U.S. currency climbed as much as 1.3 percent to 88.41 yen, the strongest level since July 2010. The euro was up 0.3 percent at $1.3085 after losing 0.4 percent earlier to the weakest level in three weeks.

The yen weakened at least 0.7 percent against all major peers and is set for an eighth weekly drop versus the U.S. currency, the longest run of losses since 1989, amid speculation the government will add more monetary stimulus.

The S&P GSCI gauge of 24 commodities dropped 0.6 percent as silver, lead, aluminum zinc and gold lost at least 1 percent to lead declines. Oil capped its biggest weekly gain in three months, increasing 17 cents to $93.09 and extending its gain since Dec. 28 to 2.5 percent.

The MSCI Emerging Markets Index fell 0.4 percent, declining for the first time in 10 days to snap the longest rally in 14 months. The gauge has climbed almost 10 percent since the Fed announced a third round of stimulus on Sept. 13. The Shanghai Composite Index rose 0.4 percent in the first day of trading this year, while Brazil’s Bovespa slipped 1 percent.

Bloomberg News

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