Solid June jobs report gets tech, consumer stocks jumping
NEW YORK — U.S. stocks climbed Friday after the government said hiring grew at a stronger pace in June. Technology and consumer-focused companies led the way as investors were glad to see a positive sign for the economy.
The Labor Department said American employers added 222,000 jobs last month. That was more than analysts had expected, and it came just a day after a survey that showed weaker job creation by private companies. Stocks regained much of the ground they lost Thursday. Technology companies jumped and retailers like Amazon and McDonald’s traded higher. Bond yields climbed and the dollar got stronger. Gold fell.
“The data itself shows a pretty strong labor market,” said Sean Lynch, cohead of global equity strategy for the Wells Fargo Investment Institute. He said it “probably lays to rest some of the worries (that) we were taking a step back from an economic standpoint.”
The government said more people looked for work in June, which pushed the unemployment rate slightly higher. The government also raised its estimates of job gains in April and May. However average wage growth remained modest. Still, companies that would benefit from better economic growth, like banks and industrial companies, made strong gains.
Facebook added $2.62, or 1.8 percent, to $151.44 and Microsoft rose 89 cents, or 1.3 percent, to $69.46 as technology companies made the biggest gains Friday. They have done better than any other industrial group within the S&P 500 this year.