Stocks climb…128,000 jobs added…Manufacturing contracts…Construction spending rises
NEW YORK (AP) – Stocks are making solid gains in morning trading on Wall Street following a strong jobs report for October, putting the S&P 500 on track for its fourth straight weekly gain. Banks, health care and industrial companies are leading the way higher. Fitbit soared 16% after agreeing to be acquired by Google’s parent company, Alphabet. Fortinet jumped 11% after the network security company reported results that easily beat analysts’ forecasts.
WASHINGTON (AP) – U.S. employers added a solid 128,000 jobs in October. The figure was held down by a strike against General Motors that caused several thousand workers to be temporarily counted as unemployed. The Labor Department says the strike, now settled, contributed to the loss of 41,600 auto factory jobs in October. The unemployment rate ticked up from 3.5% to 3.6%. The report also revised upward job gains in the prior two months by a combined 95,000,
WASHINGTON (AP) – U.S. manufacturing output dropped for the third straight month in October as trade tensions and a slowing global economy took a toll on American factories. The Institute for Supply Management, an association of purchasing managers, says its manufacturing index blipped up to 48.3 last month from 47.8 in September. But anything below 50 signals a contraction and manufacturing has been on a three-month losing streak.
WASHINGTON (AP) – Construction spending rose 0.5% in September, boosted by government and private residential projects. The Commerce Department says government construction rose 1.5%, powered by state and local building. Private residential construction increased 0.6%, with single family home construction up 1.3% but apartment building or multi-family home projects falling 0.7%.
SAN FRANCISCO (AP) – Fitbit is being acquired by Google’s parent company for about $2.1 billion. Alphabet says it will pay $7.35 per share for the company. The deal is expected to close next year if approved by regulators and Fitbit shareholders. Fitbit is a pioneer in wearable fitness technology, but it’s been under pressure from other device makers.