U.S stocks rise as jobs report surprises; Dow gains 0.98%
Published Jul 05, 2013 04:11PM ET
At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.98%, the S&P 500 index ended up 1.02%, while the Nasdaq Composite index rose 1.04%.
The Bureau of Labor Statistics reported earlier the U.S. economy added 195,000 nonfarm payrolls in June, well above analysts' calls for a 165,000 increase.
May's figure was revised upwards to 195,000 jobs from 175,000, while April's figure was revised upwards to 199,000 from 149,000.
The headline unemployment rate remained unchanged at 7.6% last month, while hourly earnings rose 0.4% compared to market calls for a 0.2% gain.
The numbers sent stocks gaining despite the rise in sentiments that monetary stimulus measures are on their way out by next year.
Today, the Federal Reserve is buying USD85 billion in Treasuries and mortgage securities each month to push down borrowing cross across the economy and drive recovery, a monetary stimulus tool known as quantitative easing that weakens the greenback and makes assets like stocks rise.
Talk of the end of stimulus tools often sends stocks falling, though stocks rose on sentiments that the end of stimulus means the beginning of a more robust period of economic expansion, which sparked a rally on Wall Street Friday.
Leading Dow Jones Industrial Average performers included American Express, up 2.37%, JPMorgan Chase, up 2.31%, and United Technologies, up 1.92%.
The Dow Jones Industrial Average's worst performers included McDonald's, down 0.52%, Procter & Gamble, down 0.34%, and Cisco Systems, which ended the day unchanged.
European indices, meanwhile, finished lower.
After the close of European trade, the EURO STOXX 50 fell 1.91%, France's CAC 40 fell 1.46%, while Germany's DAX 30 finished down 2.36%. Meanwhile, in the U.K. the FTSE 100 finished down 0.72%.
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Written By: Investing.com
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