* Major U.S. stock indexes hit record highs; Dow reaches for
* Dollar rises, boosted by strong wages in U.S. jobs report
* U.S. Treasury debt yields rise across the board
* Oil edges up; strong dollar, OPEC doubts make buyers
(Updates to afternoon U.S. trading)
By Saqib Iqbal Ahmed
NEW YORK, Jan 6 Stocks overcame early weakness,
and the dollar and U.S. Treasury debt yields rallied on Friday,
after December's U.S. non-farm payrolls report showed a slowing
in hiring but an increase in wages, setting the economy up for
further interest rate increases from the Federal Reserve this
A stronger dollar weighed on dollar-denominated commodity
prices and oil rose slightly on increased buying ahead of the
U.S. employment increased less than expected in December but
a rebound in wages pointed to sustained labor market momentum
that sets up the economy for stronger growth and could drive the
Fed to consider raising interest rates as early as the first
"There's still improvement to be made, especially with the
labor force participation rate being low, but conditions seem to
be close to what the Fed might be happy with," said Brian
Jacobsen, chief portfolio strategist, at Wells Fargo Funds
Management, in Menomonee Falls, Wisconsin.
MSCI's world index, which tracks shares in
46 countries, erased earlier losses to trade little changed.
U.S. stocks advanced and the Dow Jones Industrial Average
came within a hair's breadth of hitting 20,000 for the first
U.S. stocks have risen sharply since Donald Trump won the
U.S. election in November and while Friday's additional gains
suggested the rally is not yet over, some investors have grown
"The market's advance is understandable because of the
economic stimulus optimism associated with a new Trump
presidency," said CFRA chief investment strategist Sam Stovall.
"But parabolic market advances traditionally experience
digestion of these gains, and I don't think this time will be
The Dow Jones Industrial Average rose 82.97 points,
or 0.42 percent, to 19,982.26, the S&P 500 gained 10.32
points, or 0.454826 percent, to 2,279.32 and the Nasdaq
Composite added 38.58 points, or 0.7 percent, to
European shares rallied from lows on Friday after the U.S.
jobs data. Europe's broad FTSEurofirst 300 index pared
early losses to finish little changed at 1,444.97.
The solid jobs report helped the dollar recover ground after
two straight days of losses against a basket of major
currencies. The dollar index, which measures the
greenback against six major rivals, was up 0.67 percent to
In bond markets, U.S. Treasury debt yields rose across the
board. Yields on benchmark U.S. 10-year notes rose from a
five-week trough, while those on 30-year bonds recovered from a
seven-week low following the jobs data.
"The wage pressure number will give the Fed enough
ammunition to consider raising rates again perhaps in the first
quarter," said Dan Heckman, senior fixed income strategist, at
U.S. Bank Wealth Management in Kansas City, Missouri.
The U.S. 10-year note was down 14/32 in price to
yield 2.418 percent, compared with 2.368 percent late on
Meanwhile, the stronger dollar weighed on dollar-denominated
Gold slipped from a one-month high touched in the previous
session. Spot gold fell 0.74 percent to $1,171.70 an
Oil prices rose slightly on Friday as investors bought
futures ahead of the weekend, but the stronger dollar and
lingering doubts about whether all OPEC producers would cut
output in line with an agreement, capped gains.
Brent crude settled up 21 cents, or 0.37 percent, at
$57.10 a barrel, and U.S. crude settled up 23 cents, or
0.43 percent, at $53.99.
(Reporting by Saqib Iqbal Ahmed; Additional reporting by
Rodrigo Campos and Gertrude Chavez-Dreyfuss; Editing by Nick