Wall Street gained on Friday on reports that US employers absorbed more workers for the fourth month in a row. The S&P 500 Index hit a record peak as the Dow and Nasdaq closed the week strong after employment data from the Labor Department showed that 217,000 persons got employed in May.
According to the Boston Globe, investors were bullish on indicators that the US economy had overcome bad weather as they also took positively news that the European Central Bank had embarked on measures to improve the region’s economy.
Joy Global Inc added 3.9%, surging for the second day, with stocks of industrial companies rallying. Gap Inc increased 2.1% as it posted better-than-expected same-store sales for May. Rally Software Development Corp lost 29% after the firm’s revenue outlook fell below analysts’ expectations. Hertz Global Holdings Inc suffered the worst decline in seven months after saying it was going to correct three years of accounting.
The Standard & Poor’s 500 Index was up 0.5% to 1,949.44 as of 4 PM in New York. The Chicago Board Options Exchange Index hit low levels last seen seven years ago at the close. The Dow Jones Industrial Average added 88.17 or 0.5% to hit 16,924.28 on Friday. The Russell 2000 Index jumped 1%. Wall Street saw 5.3 billion shares exchanged on Friday, a volume which was 15% below the average for three months.
“The market likes this steady state of economic improvement. A really weak number would raise economic concerns that the economy is rolling over, and a too-strong number would cause concern about the Fed accelerating its tightening timetable. It’s a sweet spot for the market,” Timothy Ghriskey of Solaris Asset Management LLC in New York told Bloomberg.
But investors are still cautious regarding the stock market surge as the see a potential correction happening in the coming couple of months, the Boston Globe reported.
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