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Wall Street surged on Friday following blockbuster non-farm payroll data of May. U.S. economy added highest ever jobs in a month which was in contrast to a sharp reduction of jobs in the last month. Unemployment rate reduced consequently. All three major stock indexes ended in the green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 3.2% or 829.16 points to close at 27,110.98. This was the first closing of the index above 27,000 since Feb 25. Notably, 28 components of the 30-stock index ended in the green while 2 finished in red. The blue-chip index is currently 5% away to become positive year-to-date and 9.1% below its all-time high recorded on Feb 12.
The S&P 500 climbed 2.6% to close at 3,193.93. The Energy Select Sector SPDR (XLE) rallied 7.4% while the Financials Select Sector SPDR (XLF), the Industrials Select Sector SPDR (XLI) and the Real Estate Select Sector SPDR (XLRE) advanced 3.7% each. Notably, all eleven sectors of the benchmark index closed in positive territory. The broad-market index is just 1.1% away to become positive year-to-date and 6.2% below its all-time high recorded on Feb 19.
Meanwhile, the tech-heavy Nasdaq Composite closed at 9,814.08, gaining 2.1% due to strong performance of large-cap tech stocks. During the intraday trading session, Nasdaq Composite reached 9,842.49, surpassing its previous all-time high of 9,838.37 recorded in Feb 19. However, the tech-laden index remained 3.1 points below its all-time high closing registered on Feb 19. Notably, the index is up 9.3% year to date.
The fear-gauge CBOE Volatility Index (VIX) decreased 5% to close at 24.52. A total of 17.56 billion shares were traded on Friday, higher than the last 20-session average of 12.03 billion. Advancers outnumbered decliners on the NYSE by a 5.03-to-1 ratio. On Nasdaq, a 3.08-to-1 ratio favored advancing issues.
Historically High Monthly Job Additions in May
The Department of Labor reported that the U.S. economy added nearly 2.51 million jobs in May in contrast to the consensus estimate of a job loss of 7.82 million. May's payroll data marked the highest ever monthly job addition since the Bureau of Labor Statistics started following this data in 1939. Notably, in April and March, the U.S. economy lost a revised 20.7 million and 1.4 million jobs, respectively.
Systematic reopening of the U.S. economy after two months of lockdowns is the primary reason for this fabulous payroll data. Industry wise, major gainers are leisure and hospitality, mining and logging, construction, education and health services, retail and manufacturing that added 1,2 million, 669,000, 464,000, 424,000, 367,800 and 225,000 jobs, respectively.
Unemployment rate decreased to 13.3% in May from 14.7% in April. The consensus estimate was 19.5%. Average hourly earnings declined 6.7% from a year ago as more low-salaried people joined workforce. The average work week rose 0.5 hours to 34.7 hours. Notably, average work week in manufacturing industry increased 0.8 hours to 38.9 hours.
Weekly Roundup
Last week was an impressive one for Wall Street. The three major stock indexes - the Dow, the S&P 500 and the Nasdaq Composite - rallied 6.8%, 4.9% and 3.4%, respectively. Gradual reopening of the U.S. economy from coronavirus-induced lockdowns strengthened investors' confidence.
Record-breaking job addition in May and other better-than-expected economic data like ISM manufacturing and services index, construction spending, initial jobless claims and vehicle sales have given indication for a quicker-than-expected recovery of the U.S. economy from the devastation of coronavirus.
Shares of Yelp (YELP - Free Report) appreciated nearly 16% last Friday after the U.S. Bureau of Labor Statistics reported an unexpected drop in the unemployment rate. (Read More)
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Shutterstock
Stock Market News for June 8, 2020
Wall Street surged on Friday following blockbuster non-farm payroll data of May. U.S. economy added highest ever jobs in a month which was in contrast to a sharp reduction of jobs in the last month. Unemployment rate reduced consequently. All three major stock indexes ended in the green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 3.2% or 829.16 points to close at 27,110.98. This was the first closing of the index above 27,000 since Feb 25. Notably, 28 components of the 30-stock index ended in the green while 2 finished in red. The blue-chip index is currently 5% away to become positive year-to-date and 9.1% below its all-time high recorded on Feb 12.
The biggest gainer of the Dow was The Boeing Co. (BA - Free Report) , which rallied 11.5%. The Boeing carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 climbed 2.6% to close at 3,193.93. The Energy Select Sector SPDR (XLE) rallied 7.4% while the Financials Select Sector SPDR (XLF), the Industrials Select Sector SPDR (XLI) and the Real Estate Select Sector SPDR (XLRE) advanced 3.7% each. Notably, all eleven sectors of the benchmark index closed in positive territory. The broad-market index is just 1.1% away to become positive year-to-date and 6.2% below its all-time high recorded on Feb 19.
Meanwhile, the tech-heavy Nasdaq Composite closed at 9,814.08, gaining 2.1% due to strong performance of large-cap tech stocks. During the intraday trading session, Nasdaq Composite reached 9,842.49, surpassing its previous all-time high of 9,838.37 recorded in Feb 19. However, the tech-laden index remained 3.1 points below its all-time high closing registered on Feb 19. Notably, the index is up 9.3% year to date.
The fear-gauge CBOE Volatility Index (VIX) decreased 5% to close at 24.52. A total of 17.56 billion shares were traded on Friday, higher than the last 20-session average of 12.03 billion. Advancers outnumbered decliners on the NYSE by a 5.03-to-1 ratio. On Nasdaq, a 3.08-to-1 ratio favored advancing issues.
Historically High Monthly Job Additions in May
The Department of Labor reported that the U.S. economy added nearly 2.51 million jobs in May in contrast to the consensus estimate of a job loss of 7.82 million. May's payroll data marked the highest ever monthly job addition since the Bureau of Labor Statistics started following this data in 1939. Notably, in April and March, the U.S. economy lost a revised 20.7 million and 1.4 million jobs, respectively.
Systematic reopening of the U.S. economy after two months of lockdowns is the primary reason for this fabulous payroll data. Industry wise, major gainers are leisure and hospitality, mining and logging, construction, education and health services, retail and manufacturing that added 1,2 million, 669,000, 464,000, 424,000, 367,800 and 225,000 jobs, respectively.
Unemployment rate decreased to 13.3% in May from 14.7% in April. The consensus estimate was 19.5%. Average hourly earnings declined 6.7% from a year ago as more low-salaried people joined workforce. The average work week rose 0.5 hours to 34.7 hours. Notably, average work week in manufacturing industry increased 0.8 hours to 38.9 hours.
Weekly Roundup
Last week was an impressive one for Wall Street. The three major stock indexes - the Dow, the S&P 500 and the Nasdaq Composite - rallied 6.8%, 4.9% and 3.4%, respectively. Gradual reopening of the U.S. economy from coronavirus-induced lockdowns strengthened investors' confidence.
Record-breaking job addition in May and other better-than-expected economic data like ISM manufacturing and services index, construction spending, initial jobless claims and vehicle sales have given indication for a quicker-than-expected recovery of the U.S. economy from the devastation of coronavirus.
Stocks That Made Headline
Yelp Rallies 16% on Faster Economic Recovery Hopes
Shares of Yelp (YELP - Free Report) appreciated nearly 16% last Friday after the U.S. Bureau of Labor Statistics reported an unexpected drop in the unemployment rate. (Read More)
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>