Reuters | Jun 06, 2020 01:30
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* U.S. economy unexpectedly adds jobs in May
* Boeing jumps on hopes of a pickup in air travel
* Novavax up on funding for COVID-19 vaccine candidate
* Indexes up: Dow 3.53%, S&P 500 2.77%, Nasdaq 2.11%
(Adds comments, updates prices to early afternoon)
By Devik Jain and Shreyashi Sanyal
June 5 (Reuters) - A stunning U.S. jobs report on Friday put
the Nasdaq within striking distance of its record high as
investors flocked back to riskier assets on hopes of a swift
economic rebound from the coronavirus-driven slump.
The blue-chip Dow Jones index .DJI added 1,000 points,
briefly hitting a level not seen since early March, while the
S&P 500 .SPX is less than 1% away from turning positive on the
Data from the Labor Department showed nonfarm payrolls rose
by 2.509 million jobs last month after a record plunge of 20.687
million in April, and the unemployment rate unexpectedly fell to
13.3% in May from 14.7% in April. "Today was a shocking jobs number and for the first time
this year it was a positive shock," said Chris Zaccarelli, chief
investment officer of Independent Advisor Alliance in Charlotte,
"At 13.3%, we are still at a higher rate than any that we
hit during the financial crisis in 2007-2009, but as long as
that continues to move lower, it will show that the reopening of
the economy is proceeding smoothly."
Wall Street has rebounded sharply from a coronavirus-driven
crash in March as investors bet on a revival in business
activity following the easing of a nationwide lockdown, and the
S&P 500 is now just about 6% below its February record high.
The S&P 500 banks sub-index .SPXBK , considered
interest-rate sensitive, jumped 5.1% as U.S. Treasury yields
rose after the data. US/
Boeing Co BA.N gained 16.2%, the biggest boost to the Dow
Jones index .DJI , on hopes of a pickup in air travel a day
after American Airlines Group Inc AAL.O and United Airlines
UAL.O said they would boost their U.S. flight schedule next
month. The NYSE ARCA Airline index .XAL also jumped 10.8%. The
Dow Jones Transport Average index .DJT , often seen as a
barometer for economic confidence, rose 4.6%.
All major S&P 500 sector indexes rose, with investors buying
into more cyclical stocks including energy .SPNY , financials
.SPSY , and consumer discretionary .SPLRCD . The defensive
consumer staples index .SPLRCS was among the smallest gainers.
At 12:55 p.m. ET, the Dow Jones Industrial Average .DJI
was up 927.89 points, or 3.53%, at 27,209.71, the S&P 500 .SPX
was up 86.12 points, or 2.77%, at 3,198.47 and the Nasdaq
Composite .IXIC was up 202.45 points, or 2.11%, at 9,818.27.
Fears of more disruptions from social unrest have also
eased, with the largely peaceful protests against the killing of
a black man in police custody waning into Friday morning and
emergency curfews in many cities being lifted. Vaccine maker Novavax Inc NVAX.O rose 3.2% after saying it
would get up to $60 million from the U.S. Department of Defense
to fund manufacturing of its COVID-19 vaccine candidate.
Tiffany & Co TIF.N jumped 5.9% after Reuters reported the
LVMH LVMH.PA is not seeking to renegotiate its $16.2-billion
takeover deal after deliberating whether to do so. Advancing issues outnumbered decliners for a 6.18-to-1 ratio
on the NYSE and a 3.54-to-1 ratio on the Nasdaq.
The S&P index recorded 23 new 52-week highs and no new low,
while the Nasdaq recorded 77 new highs and two new lows.
Written By: Reuters
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