CORRECTED-US STOCKS-Financials lead Wall St higher, Dow hits record

viernes 5 de diciembre de 2014 12:25 GYT

(Corrects price of Dalia's stock from 16 cents to 1.6 cents in last paragraph)

* Indexes up: Dow 0.3 pct, S&P 0.1 pct, Nasdaq 0.2 pct

By Rodrigo Campos

NEW YORK, Dec 5 (Reuters) - Bank shares led gains Friday on Wall Street after November payrolls data came in much stronger than anticipated, raising market expectations a rate hike from the Federal Reserve may materialize sooner than previously thought.

Payrolls came in at 321,000 for November, the largest number in nearly three years and way above the 230,000 estimated, while the unemployment rate held steady at 5.8 percent, a six-year low.

Financials led the S&P 500's gains, up 1 percent as higher interest rates would prop up earnings in the sector, while utilities, a dividend play, were posting the biggest losses - down 1.3 percent - as Treasuries yields rose.

"This report solidifies the idea that the economy is getting stronger, and the more economic activity on Main Street, the better it will be for financials," said Adam Sarhan, chief executive of Sarhan Capital in New York.

"The economy doing well is win-win-win across the board for financials, because it means more lending, more economic activity, and with markets at highs, brokers are getting more in commission and this and that. Financials are poised to move much higher."

Not everything was rosy, however, as new orders for U.S. factory goods fell for a third straight month in October, pointing to a slowdown in manufacturing activity.   Continuación...