Stocks jump after US jobs report beats forecasts.
U.S. employers added 175,000 jobs in May, slightly more than the 170,000 forecast by economists, according to data provider FactSet. More people also began looking for work, another encouraging sign.
The report gave a boost to stock market bulls, who expect the Federal Reserve to keep up its stimulus program as the U.S. economy continues to recover moderately. That combination pushed the Dow Jones industrial average and the Standard & Poor's 500 index to record highs last month.
For investors who expect the Fed to stay the course, "these types of slow economic growth reports speak to that," said Kevin Mahn, chief investment officer at Hennion & Walsh Asset Management. "It keeps interest rates at record lows and it keeps the equity markets humming." The Dow Jones Industrial average was up 181 points, or 1.2 percent, to 15,222 shortly before noon (1600 GMT). Boeing led the Dow higher with a gain of $2.24, or 2.3 percent, to $102.01. Twenty-eight of the 30 stocks in the Dow rose.
The Standard & Poor's 500 index gained 17 points, or 1 percent, to 1,639. The Nasdaq composite rose 33 points, or 1 percent, to 3,457.
The gains were broad. Nine of the 10 industry groups in the S&P 500 index rose, led by industrial stocks, which stand to benefit more than other sectors if the economy picks up. Among industrial companies, General Electric rose 36 cents, or 1.5 percent, to $23.73.
-- SPA 19:24 LOCAL TIME 16:24 GMT
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|Publication:||Saudi Press Agency (SPA)|
|Date:||Jun 7, 2013|
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