Stocks surge on positive jobs data
Investors think the U. S. economy is at a perfect temperature for stocks: not too hot, not too cold.
The latest evidence came Friday in a jobs report that showed a pickup in hiring last month that could mean more people with paychecks, more spending and higher corporate profits.
But the report also showed that wages were stagnant, which cheered investors worried anything pushing up inflation could prompt the Federal Reserve to raise interest rates soon and kill the rally.
All major stock indexes rose sharply. The Dow Jones industrial average closed 208 points higher. The rally started from the open and swept up nearly every kind of stock, small and large, andin almost every industry. All 10 sectors in the Standard and Poor’s 500 index rose.
“The solid payroll report is great for economic growth and stock prices,” said Anastasia Amoroso, global market strategist at J. P. Morgan Funds.
The good news pushed up the value of the dollar against other major currencies to the highest level in more than four years. U. S. bonds and gold fell as investors fled traditional “safe haven” assets.
The Dow rose 208.64, or 1.2%, to 17,009.69. It was the third 200- point move in a little over a week as markets have turned more volatile.
The S& P 500 index climbed 21.73 points, or 1.1%, to1,967.90. Nasdaq rose 45.43 points, or1%, to 4,447.62.
Even with the gains Friday, all three indexes ended more than half a percent lower for theweek, adding to losses lastweek.
The U. S. Dollar Index, which measures the dollar against six other major currencies, surged1.3%. The euro fell 1.2% to $ 1.2515; the dollar gained1.2% to109.76 yen.
In stocks making big moves, shares of Mylan jumped 8% after the generic drug maker raised its outlook for the third quarter and year. The stock rose $ 3.73 to $ 50.23.
Benchmark U. S. crude fell $ 1.27 to close at $ 89.74 a barrel, its lowest level since April 2013. Brent crude, a bench mark for international oils used by many U. S. refineries, fell $ 1.11to $ 92.31.