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JULY 2, 2020 / 6:13 pm
Wall Street closes higher after biggest payrolls jump on record
DJ: 25,734.97 -77.91 NAS: 10,154.63
+95.86 S&P: 3,115.86
+15.57 7/1
DJ: 25,827.36 +92.39 NAS: 10,207.63 +53.00 S&P: 3,130.01
+14.15 7/2
NEW YORK (Reuters) - Wall
Street closed higher and the Nasdaq reached an all-time closing high on
Thursday as investors headed into their long holiday weekend buoyed by a record
surge in payrolls, which provided assurance that the U.S. economic recovery was
well under way. All three major U.S.
stock averages advanced, with the benchmark S&P 500 posting its fourth
straight daily gain.
Massive stimulus and
hopes for a speedy economic rebound have returned the S&P 500 and the Dow
to 7.6% and 12.6% below their record highs reached in February. The
indexes registered strong gains for the week.
The U.S. economy added
4.8 million jobs in June according to the Labor Department, 1.8 million
more than analysts expected, setting a second consecutive record.
Massive rehiring sent the unemployment rate down to 11.1%. “There was a lot to like in economic data for
the week,” said Paul Nolte, portfolio manager at Kingsview Asset
Management in Chicago. “And there’s still talk that there will be more stimulus
from Washington after they get back from the Fourth of July break.” Still, even with May and June’s consecutive
record payroll gains, the labor
market has still recovered only a fraction of the 22 million jobs lost
in the March-April plunge.
The recovery of the U.S.
economy, now in its sixth month of recession, could stall as new cases of
COVID-19 hit record levels
and several states hit hardest by the resurgence halted or reversed plans to
reopen their economies. On Thursday, Florida reported a record-shattering 10,000
new cases of the disease, worse than any European country reported at the peak
of their outbreaks. “With the spikes (in
new COVID-19 cases) we’ve seen the larger states - Texas, California and
Florida - those states have taken steps to turn back their re-opening plans,”
Nolte added. “And that will slow the overall growth and consumer spending in
those regions.”
In the coming weeks,
market participants will train their focus on second-quarter reporting season. In aggregate, analysts now
expect S&P earnings to have dropped by 43.1% as companies grappled with
plunging demand and disrupted supply chains.
The Dow Jones
Industrial Average .DJI rose 92.39 points, or 0.36%, to 25,827.36, the
S&P 500 .SPX gained 14.15 points, or 0.45%, to 3,130.01
and the Nasdaq Composite .IXIC added 53.00 points, or 0.52%, to 10,207.63.
The CBOE Volatility
index , a barometer of investor anxiety, logged its largest weekly point drop since
the week ending May 8. Of the 11
major sectors in the S&P 500, all but real estate .SPLRCR and
communications services .SPLRCL closed higher, with materials .SPLRCM enjoying
the largest percentage gain.
Microsoft Corp (MSFT.O)
provided the biggest boost to the S&P 500, and in June retained its top
spot as the most globally invested stock, according to data from trading
platform eToro.
Tesla Inc (TSLA.O)
jumped 8.0% after the electric car maker’s second-quarter vehicle deliveries
beat Wall Street estimates.
Advancing issues outnumbered declining ones on the NYSE by a
1.90-to-1 ratio; on the Nasdaq, a 1.28-to-1 ratio favored advancers. The
S&P 500 posted 36 new 52-week highs and no new lows; the Nasdaq Composite
recorded 123 new highs and 10 new lows.
Volume on U.S. exchanges
was 10.03 billion shares,
compared with the 13.24 billion average over the last 20 trading days.
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