NEW YORK -- U.S. stocks rose to records, with the Dow Jones Industrial Average climbing within 10 points of 18,000, as better-than-estimated payrolls data overshadowed declines in energy shares.
JPMorgan Chase & Co. and Goldman Sachs had the biggest gains in the Dow as banks rallied. Starbucks jumped 2.8 percent to a record. Apache and Chevron dropped at least 1.2 percent as energy shares declined for a second day. Google lost 2.2 percent after Bank of America Corp. downgraded the shares.
The Standard & Poor's 500 Index added 0.2 percent to 2,075.37 at 4 p.m. in New York, paring an earli
er rally of 0.4 percent. The Dow rose 58.69 points, or 0.3 percent, to 17,958.79. The Russell 2000 Index climbed 0.8 percent. About 6.2 billion shares changed hands on U.S. exchanges, 8.5 percent below the three-month average.
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"It was an amazing jobs report, with gains across every sector," Joe "JJ" Kinahan, chief strategist at TD Ameritrade Holding Corp., said in a phone interview. The firm manages about $653 billion in client assets. "It really was a number that Wall Street wasn't prepared for. The market doesn't like surprises so there was selling pressure but the number is too good to sell on based off of that."
Employers in the U.S. added 321,000 jobs in November, the most since January 2012, driving wage gains and highlighting increased corporate confidence the economy will endure a weakening in global markets.
The advance in payrolls exceeded the most optimistic projection in a Bloomberg survey of economists and followed a 243,000 gain in October that was stronger than previously reported, figures from the Labor Department showed Friday in Washington. The jobless rate held at a six-year low of 5.8 percent. Average hourly earnings rose 0.4 percent, the biggest gain since June of last year.
"People are trying to figure out whether the economy can stand on its own, and two months ago numbers like these may have been bad for stocks," Chris Gaffney, senior market strategist at EverBank Wealth Management in St. Louis, said via phone. "But maybe we're at the point where the market thinks the economy can grow without the Fed pumping money into it."
The S&P 500 gained 0.4 percent this week, a seventh straight advance, its longest winning streak in a year. It has rebounded 11 percent from a low in October amid speculation the U.S. economy is strong enough to withstand a slowdown overseas and tighter monetary policy after the Fed wound up its asset- purchase program.
U.S. stocks fell from records Thursday as European Central Bank President Mario Draghi said policy makers will wait until early next year to assess the need for further stimulus. The comments disappointed some investors seeking faster action.
Equities began to pare Friday's rally after S&P cut its rating on Italy, citing low growth and an increase in the country's debt. Energy shares slumped 1.2 percent as a group as oil tumbled to a five-year low.
Nabors Industries and Marathon Petroleum posted the biggest losses among energy companies in the S&P, losing at least 4.7 percent. Chevron slid 1.3 percent, the most in the Dow.