Upbeat Jobs Data Leads To Choppy Trading On Wall Street - U.S. Commentary

(RTTNews) - With traders digesting today's closely watched monthly jobs report, stocks are turning in a relatively lackluster performance in early trading on Friday. The major averages have been bouncing back and forth across the unchanged line.

Currently, the major averages are turning in a mixed performance. While the S&P 500 is down 5.05 points or 0.2 percent at 2,094.88, the Dow is up 2.91 points or less than a tenth of a percent at 17,866.34 and the Nasdaq is up 5.11 points or 0.1 percent at 5,132.85.

The choppy trading on Wall Street comes after the Labor Department released a report showing much stronger than expected job growth in the month of October.

The strong job growth is a positive sign for the U.S. economy, but the data also increases the likelihood the Federal Reserve will raise interest rates next month.

The report said non-farm payroll employment jumped by 271,000 jobs in October compared to economist estimates for an increase of about 185,000 jobs.

The unemployment rate subsequently fell to a seven-year low of 5.0 percent in October, matching economist estimates.

The focus on the jobs report was intensified by Federal Reserve Chair Janet Yellen's recent comments about interest rates.

In testimony before the House Financial Services Committee on Wednesday, Yellen said a December rate hike would be a "live possibility" if the incoming economic data supports such a move.

Despite the lack of direction being shown by the broader markets, banking stocks have moved sharply higher on the day. The Dow Jones Banks Index has surged up by 3 percent, reaching its best intraday levels in over two months.

Semiconductor and brokerage stocks are also seeing significant strength, while considerable weakness is visible among gold, utilities and energy stocks.

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Friday. Japan's Nikkei 225 Index advanced by 0.8 percent, while Hong Kong's Hang Seng Index dropped by 0.8 percent.

The major European markets have also turned mixed on the day. While the German DAX Index has risen by 0.8 percent, the U.K.'s FTSE 100 Index is down by 0.3 percent and the French CAC 40 Index is just below the unchanged line.

In the bond market, treasuries have fallen sharply in reaction to the upbeat jobs data. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, has surged up by 10 basis points to 2.345 percent.