Wall Street surges to record highs despite dismal jobs report
Fueled by the solid performance of industrial and tech stocks, major equity indexes in the U.S. advanced to record highs on Friday, shrugging off the disappointing jobs report.
The weak nonfarm payroll increase in the U.S. damaged the expectations of more rate hikes after June and weighed on the weighing on the financial sector .SPSY, which finished the day 0.4% lower. However, the pressure on the indexes was offset by earnings in industrial and technology stocks.
"I wouldn’t say the data is supportive of hiking but they are on a path and they are not going to change that path, at least in June," Jim Tierney, Chief Investment Officer of Concentrated US Growth at AllianceBernstein in New York, told Reuters.
Broadcom shares gained more than 8% on the day and refreshed its record high after the company reported higher than expected quarterly earnings. S&P 500 energy index, .SPLRCT, added nearly 1% on the day. In the meantime, after rising as much 0.9%, S&P 500 industrials, .SPLRCI, closed the day 0.55% higher.
The Dow Jones Industrial Average added 50.84 points, or 0.24%, to 21,220.76, the S&P 500 rose 7 points, or 0.3%, to 2,439.11 and the Nasdaq Composite gained 56.11 points, or 0.9%, to 6,302.94.
Headlines from the U.S. session:
- U.S. Treasuries: Yields are down across the board post-NFP
- Eurozone: Next week key events - Danske Bank
- US Dollar Index consolidates losses, headed toward lowest close since October
- Fed's Kaplan: We've still got slack but we are moving toward full employment
- Fed's Harker: U.S. jobs report for May is "a good number"
- US NFP: Job growth moderates - Wells Fargo
- Goldman Sachs: 90% chance U.S. Fed raising interest rates at June 13-14 policy meeting
- NY Fed Nowcast: GDP growth 2.2% for 2017:Q2 and 1.8% for 2017:Q3