Reuters | Jun 05, 2020 23:40
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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 3.31%, S&P 500 2.63%, Nasdaq 1.91%
(Adds comments, updates prices throughout)
By Devik Jain and Shreyashi Sanyal
June 5 (Reuters) - U.S. stock indexes jumped on Friday, with
the Nasdaq Composite less than 1% away from a record high, on
hopes of a faster economic rebound from a coronavirus-led slump
after data showed surprise job additions in May.
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 with Independent Advisor Alliance in
Charlotte, North Carolina.
"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."
The S&P 500 banks sub-index .SPXBK , considered
interest-rate sensitive, jumped 5.8% as U.S. Treasury yields
rose after the data. US/
Boeing Co BA.N gained 14.4%, 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
The NYSE ARCA Airline index .XAL also jumped 12.2%.
All major S&P 500 sector indexes rose, with the energy
sub-index's .SPNY leading gains with a jump of 7.2%, while the
defensive consumer staples index .SPLRCS added the smallest
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.
The S&P 500 .SPX and Dow Jones .DJI indexes are now down
about 6% and 8%, respectively, from their all-time highs.
At 11:09 a.m. ET, the Dow Jones Industrial Average .DJI
was up 868.73 points, or 3.31%, at 27,150.55, the S&P 500 .SPX
was up 81.85 points, or 2.63%, at 3,194.20 and the Nasdaq
Composite .IXIC was up 183.41 points, or 1.91%, at 9,799.22.
Fears of more disruptions from social unrest have also eased
in the past two days, 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 jumped 3.7% after saying
it would receive 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 8% after Reuters reported the
French luxury goods giant LVMH LVMH.PA is not seeking to
renegotiate its $16.2-billion takeover deal after deliberating
whether to do so. Advancing issues outnumbered decliners by a 7.13-to-1 ratio
on the NYSE and by a 4.24-to-1 ratio on the Nasdaq.
The S&P index recorded 22 new 52-week highs and no new low,
while the Nasdaq recorded 70 new highs and one new low.
Written By: Reuters
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