Stocks Mixed, Dollar Up On Upbeat US Jobs Data

Stock markets were mixed and the dollar rose on Friday as investors weighed an upbeat US jobs report against concerns that the Federal Reserve could wind down its stimulus sooner than expected.

The dollar strengthened after government data showed the US economy added 943,000 new jobs in July, dropping the unemployment rate by half a point to 5.4 percent.

US stock markets diverged. The Dow and S&P 500 advanced, closing at records, while the tech-heavy Nasdaq index ended lower as US Treasury yields rose. Tech stocks are more sensitive to higher rates.

London's FTSE 100 was flat while other indices in Paris and Frankfurt closed higher after more robust earnings reports among European companies. Asian stocks had a sluggish end to the week.

The jobs report is "absolutely good news, that kind of news that we needed," said Art Hogan, chief strategist at National Securities.

But the negative performance of the Nasdaq suggested investors were also focused on how the data could affect the US central bank's plans to taper its stimulus program.

"The key takeaway from the report is that it is apt to drive the Fed toward a decision to taper its asset purchases sooner rather than later," said Briefing.com analyst Patrick O'Hare in a note.

Edward Moya, senior market analyst at OANDA, said "the bar was set very high today and economy delivered."

The jobs report "alleviated some inflationary concerns," and the Fed will be "pleased" and will likely see another robust reading before announcing tapering at its September policy meeting, Moya said.

"But if the unemployment rate falls to 5.1 percent before the September meeting, they could move earlier."

Despite more records on Wall Street, broader market sentiment has been dampened this week by the global spread of the Delta coronavirus variant.

"Delta concerns remain, though markets continue to view it more in the window of delay rather than derail given the high efficacy of vaccines," said Tapas Strickland at National Australia Bank.

"Nevertheless, a number of US companies have pushed back the date when they expect most workers to return to offices given the spread of Delta."

It was also another day of positive earnings, with Dutch bank ING reporting a near fivefold increase in second-quarter profit and Danish shipping giant Maersk seeing its profit soar almost ninefold.

But travel website company Expedia slumped 7.9 percent despite reporting revenues more than three times the year-ago level on higher bookings.

The company said recent developments on Covid-19 and the Delta variant continue "to create uncertainty in the travel industry."