Friday’s Gains Help Major Averages As Unemployment Rate Slightly Rises – Acadiana Business Index
- The Dow was up 207 points to 15248. The S&P 500 Index gained over 20 points to 1643. The NASDAQ was higher by 45 points to 3469.
- Equity markets gained ground as an employment update renewed hopes that the Fed will not taper its bond purchases.
- The nonfarm payrolls report topped estimates for May with a gain of 175,000, but came in below this year’s average monthly advance.
- In addition, the previous month’s figure was revised lower and the unemployment rate unexpectedly rose to 7.6%.
- Nine of the 10 S&P 500 sectors were higher with cyclicals outperforming defensive issues. Industrials was the best performing group as General Electric gained 2.1% to $23.86 and UPS increased 1.7% to $86.23. Telecommunications lagged behind as AT&T fell 1% to $35.45 and CenturyLink lost 0.4% to $35.36.
- Overall, Friday’s gains helped the major averages snap a two-week losing streak. The Dow finished with a weekly advance of 0.9%, the S&P 500 gained 0.8% and the NASDAQ increased 0.4%.
- NYSE Composite volume totaled over 3.2 billion shares. On the NYSE, advancers beat decliners by 9-4 on issues and by 3-1 on volume. The NASDAQ was 2-1 positive on issues and 3-1 positive on volume.
- In fixed-income, Treasuries erased a weekly advance due to Friday’s retreat. The 10-year note was down 26/32 to yield 2.17% and the 30-year bond lost over a full point and a half to yield 3.34%.
For the complete economic report, click Ken's Market Report.