S&P 500 rises for fifth consecutive week

New York | The S&P 500 Index extended its fifth straight weekly gain, the US dollar fell and Treasury yields dipped after the American latest jobs report showed a steady labour market that supported the Federal Reserve's outlook for only gradual interest-rate increases.

Major benchmarks closed near their highs of the day as positive earnings surprises lifted US shares, with 3/4 of the S&P 500 companies that reported Friday morning beating analysts' estimates. Kraft Heinz rallied as deal speculation swirled around the maker of macaroni-and-cheese dinners. Energy companies fell as oil slumped. The dollar broke a three-day winning streak following China's move to shore up the yuan.

Stocks got a boost late in Friday's trading session as the White House said officials had held high-level talks with China about trade in the past months and were open to more discussions. Trade manoeuvering kept markets on the back foot this week, competing with a mostly positive earnings season and an upbeat assessment of the economy by the Federal Reserve. About two-thirds of the way into the results season, US and European companies have posted double-digit earnings growth, according to JPMorgan strategists.

"At the end of the day, economic fundamentals are solid," said Brendan Erne, the director of portfolio management at Personal Capital.

ASX futures were 19 points or 0.3 per cent higher to 6202 at about 6.45am AEST on Saturday. The Australian dollar advanced 0.5 per cent to US73.95¢.

Elsewhere, emerging-market stocks and currencies gained. Ten-year Treasury yields held slid 4 basis points to 2.95 per cent; Australia equivalent was at 2.72 per cent. A rally for banks lifted European equity gauges.