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Equities Rise Intraday as Markets Parse Jobs Report; Middle East Tensions Send Oil Higher

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Equities Rise Intraday as Markets Parse Jobs Report; Middle East Tensions Send Oil Higher

-- US benchmark equity indexes were higher intraday as traders parsed the latest jobs report, while oil prices climbed amid renewed tensions in the Strait of Hormuz.

The Nasdaq Composite was up 1.6% at 26,214.4 after midday Friday, while the S&P 500 rose 0.8% to 7,399.1. The Dow Jones Industrial Average was up 0.1% at 49,621.5. Among sectors, technology paced the gainers with a 2.7% jump, while healthcare saw the steepest drop.

Total nonfarm payrolls rose by 115,000 last month, the Bureau of Labor Statistics said, well above the 65,000 increase expected in a Bloomberg-compiled survey.

"There is nothing in this (nonfarm payrolls) report to move the Federal Reserve off the sidelines on future rate cuts," BMO said in a note. "On balance, the solid jobs report makes the case for a near-term rate cut to stabilize a deteriorating labor market a more remote possibility."

Separately, TD Economics said the pace of job growth appears to have improved since the end of last year, though "it's too soon to say whether the labor market is regaining momentum."

West Texas Intermediate crude was up 1.2% at $95.95 per barrel, while Brent advanced 1.3% to $101.35.

The US Central Command said Friday it fired on two Iranian-flagged oil tankers trying to bypass an ongoing blockade.

Washington expects Iran to respond Friday on a proposal to end the war, CNN reported, citing US Secretary of State Marco Rubio, who added that he hopes "it's a serious offer."

A ceasefire is still in effect, the news outlet reported, citing US President Donald Trump. US forces earlier said they targeted military facilities in Iran responsible for attacking its warships in the strait, according to the report.

"Brent crude trades firmer, holding above $100 after another volatile week that saw an almost $20 trading range as Middle East headlines swung sentiment between optimism and frustration," Saxo Bank said in a report Friday. "The key point remains unchanged: the Strait of Hormuz remains effectively closed, with renewed clashes between US and Iranian forces lowering the prospect of a near-term reopening."

US Treasury yields were lower intraday, with the 10-year rate down 2.8 basis points at 4.37% and the two-year rate easing 2.4 basis points to 3.90%.

In other economic news, US consumer sentiment continued to fall in May as cost pressures tied to the Middle East conflict sent the measure tumbling to all-time lows, a survey by the University of Michigan showed.

"Consumers continue to feel buffeted by cost pressures, led by soaring prices at the pump," Surveys of Consumers Director Joanne Hsu said. "Middle East developments are unlikely to meaningfully boost sentiment until supply disruptions have been fully resolved and energy prices fall."

In company news, Fluor (FLR) reported weaker-than-expected first-quarter results, while the engineering and construction company lowered the top end of its full-year earnings outlook. The company's shares were down 15% intraday.

Among big tech names, Intel (INTC) was up nearly 14%, among the top gainers on the S&P 500, while Nvidia (NVDA) rose 2%, the third-best performer on the Dow. Apple (AAPL), Amazon.com (AMZN), Micron Technology (MU) and Dell Technologies (DELL) were also advancing.

Gold was up 0.3% at $4,724 per troy ounce, while silver advanced 0.6% to $80.65 per ounce.

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