LONDON (ShareCast) - - Investors cheered by solid jobs report
- Labour force participation rate fails to bounce back
- Fed on track to continue tapering
Dow Jones Industrials: 0.52%
Nasdaq Composite: 0.58%
S&P 500: 0.44%
US stocks managed to carve out further gains on Friday following a solid report on non-farm payrolls, leaving the Dow Jones Industrials and S&P 500 1.3% and 1.2% higher on the week.
American employers added 217,000 new jobs in May, compared to a revised 282,000 a month earlier, according to the Labor Department, surprising analysts who had forecast 215,000.
The above data marked the fourth consecutive month since November 1999-January 2000 during which job creation Stateside was at least 200,000.
Nonetheless, the unemployment rate remained unchanged at 6.3%, slightly lower than the 6.4% that was predicted by the market, failing to bounce back from the previous month´s sharp fall as the labour force participation remained unchanged at 62.8%. Some market observers pointed out that it was one small possible negative from the point of view of the Federal Reserve, which is watching the degree of spare capacity in the economy.
Even so, Barclays Research was of the following view: "The [Federal Open Market Committee] has mentioned numerous times in its statement that it will consider a wide range of labour market statistics to ascertain its health."
"Therefore, while the report is likely to keep the tapering process on track, it is unlikely to alter the Fed's timeline for potential policy rate hikes significantly. We expect the Fed to taper its monthly purchase pace by another $10bn at its June meeting and conclude purchases in October. Our forecast also calls for the first rate increase in mid-2015."
Joy Global (NYSE: JOY - news) sees global growth leading to higher demand for commodities
Mining (LSE: MIR.L - news) equipment manufacturer Joy Global was upped to buy from neutral by Bank of America Merrill Lynch. On Thursday the company said it saw stronger global growth driving demand for commodities.
Discount retailer Family Dollar rocketed 10% after the close of trading. Multi-millionaire investor Carl Icahn revealed he had accumulated a 9% stake in the firm.
Broker E-Trade Financial Corp. gained on the back of an upbeat research note from analysts at Nomura.
From a sector standpoint the best performance was seen in the following industrial groups: Aluminium (2.35%), Airlines (1.85%) and Consumer electronics (1.83%).
Crude futures edge higher
Front month West Texas crude futures ended the day 0.32% higher at $102.79/barrel on the NYMEX.
The yield on 10-year US Treasuries was flat at 2.59%.
S&P 500 - Risers
Amazon.Com Inc. (AMZN) $329.67 +7.46%
E*TRADE Financial Corp. (ETFC) $20.74 +5.28%
Adobe Systems Inc (NasdaqGS: ADBE - news) . (ADBE) $66.91 +4.27%
Akamai Technologies Inc (NasdaqGS: AKAM - news) . (AKAM) $57.47 +4.13%
CA Inc. (CA) $29.35 +3.64%
Xerox Corp (Berlin: XER.BE - news) . (XRX) $12.85 +3.55%
Autodesk Inc (NasdaqGS: ADSK - news) . (ADSK) $54.87 +3.47%
Goodyear Tire & Rubber Co. (GT) $27.23 +3.34%
Alliance Data Systems Corp. (ADS) $266.20 +3.04%
CH Robinson Worldwide Inc (NasdaqGS: CHRW - news) (CHRW) $61.17 +3.01%
S&P 500 - Fallers
First Solar Inc (Xetra: F3A.DE - news) . (FSLR) $62.87 -3.85%
Frontier Communications Co. (FTR) $5.67 -3.74%
Cliffs Natural Resources Inc (NYSE: CLF - news) . (CLF) $14.48 -2.16%
Tyson Foods Inc (NYSE: TSN - news) . (TSN) $40.12 -1.91%
SCANA Corp (NYSE: SCG - news) . (SCG) $51.38 -1.83%
eBay Inc. (EBAY (NasdaqGS: EBAY - news) ) $49.69 -1.51%
Reynolds American Inc (NYSE: RAI - news) . (RAI) $59.34 -1.48%
Peabody Energy Corp (NYSE: BTU - news) . (BTU) $16.34 -1.45%
Pepco Holdings Inc (NYSE: POM - news) . (POM) $27.46 -1.44%
Facebook Inc (NasdaqGS: FB - news) . (FB) $62.50 -1.33%
Dow Jones I.A - Risers
American Express Co. (AXP) $94.91 +2.27%
Goldman Sachs Group Inc. (GS (KSE: 078935.KS - news) ) $166.19 +2.22%
Intel Corp. (INTC) $28.18 +2.10%
General Electric Co. (GE) $27.18 +1.53%
Cisco Systems Inc (NasdaqGS: CSCO - news) . (CSCO) $24.83 +1.35%
Caterpillar Inc (NYSE: CAT - news) . (CAT (Taiwan OTC: 4990.TWO - news) ) $108.18 +1.14%
Exxon Mobil Corp. (XOM) $101.60 +1.04%
Boeing Co (NYSE: BA - news) . (BA) $138.21 +1.02%
Microsoft Corp. (MSFT) $41.48 +0.66%
3M Co. (MMM) $144.64 +0.65%
Dow Jones I.A - Fallers
Pfizer Inc (NYSE: PFE - news) . (PFE) $29.42 -1.14%
Travelers Company Inc. (TRV) $94.36 -0.64%
McDonald's Corp. (MCD) $101.96 -0.48%
Merck & Co. Inc (Xetra: 6MK.DE - news) . (MRK) $57.85 -0.43%
AT&T Inc (NYSE: T - news) . (T) $35.02 -0.23%
Walt Disney Co. (DIS) $84.61 -0.20%
Wal-Mart Stores Inc. (WMT) $77.21 -0.14%
Procter & Gamble Co. (PG) $80.03 -0.10%
Johnson & Johnson (NYSE: JNJ - news) (JNJ) $103.18 -0.04%
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