US STOCKS-Wall Street closes up sharply on surprise U.S. jobs report

US STOCKS-Wall Street closes up sharply on surprise U.S. jobs report

Reuters  | Jun 06, 2020 04:10

US STOCKS-Wall Street closes up sharply on surprise U.S. jobs report

(For a live blog on the U.S. stock market, click LIVE/ or type
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(Updates to market close)
By Stephen Culp
NEW YORK, June 5 (Reuters) - Wall Street surged on Friday
after a strikingly upbeat May jobs report unexpectedly provided
the clearest evidence yet that the U.S. economy is headed for a
quicker-than-anticipated recovery.
The Nasdaq breached its all-time closing high reached in
February but pared its gains to end the session just below it.
All three major U.S. stock indexes advanced two percent or more.
The S&P 500 and the Dow are both well within 10% of
overtaking their record closing levels.
The U.S. economy added a remarkable 2.5 million jobs last
month, rebounding from April's record 20.7 million drop and
pushing the unemployment rate down to 13.3%. Analysts saw
unemployment soaring to a historic 19.8%. "The numbers are a huge surprise to the upside," said
Michael Arone, chief investment strategist at State Street
Global Advisors in Boston.
"It would suggest a further confirmation the economy is
coming back online," Arone added. "This is a strong signal that
the effects are temporary and that the economy is improving."
"Long may it last."
U.S. Treasury yields rose on the jobs data, giving a boost
to interest rate-sensitive banks. But the World Health Organization warned that the COVID-19
pandemic, which brought the global economy to its knees in the
wake of mandated shutdowns, is far from over and new cases are
on the rise. Market participants now turn their focus to the U.S. Federal
Reserve, which holds a monetary policy meeting next week where
the latest jobs data will almost certainly be discussed.
Unofficially, the Dow Jones Industrial Average .DJI rose
829.16 points, or 3.15%, to 27,110.98, the S&P 500 .SPX gained
81.58 points, or 2.62%, to 3,193.93 and the Nasdaq Composite
.IXIC added 198.27 points, or 2.06%, to 9,814.08.
All 11 major sectors of the S&P 500 ended the session well
in the black, with cyclicals, which were beaten up amid economic
lockdowns, leading the way.
Boeing Co BA.N provided the biggest boost to the blue-chip
Dow 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. Shares of luxury retailer Tiffany & Co jumped after Reuters
reported LVMH (PA:LVMH)'s $16.2-billion takeover deal was back on track.
Drugmaker Novavax Inc NVAX.O advanced following its
announcement that the U.S. Department of Defense would give it
up to $60 million to manufacture its COVID-19 vaccine candidate.

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