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December 12, 2017
Friday, July 8, 2016

Jobs data helps Wall St recoup Brexit losses

Wall Street was rallying to recover all of its post-Brexit losses after data showed the best US job growth in eight months in June.

After a dismal report for May that raised concerns about the health of the economy, employers added 287,000 jobs in June, beating market expectations for the first time in four months.

Analysts on average had expected the economy to add 175,000 jobs last month.

The June data suggested that May was an aberration and not indicative of weakness in the labor market that could further delay an interest rate hike by the Federal Reserve.

Britain's vote to leave the European Union set off a global two-day selloff that dragged the three major US indexes to their lowest in 10 months in June.

Financial stocks, which would benefit from a rate hike, soared following the jobs report. JPMorgan, Wells Fargo and Bank of America rose about 2 percent, and were the top influences on the S&P 500. Goldman Sachs' 2.2 percent rise provided the biggest boost to the Dow.

Traders are pricing in a 26.5 percent chance of a rate increase in December, up from 18.4 percent ahead of the jobs report, according to CME Group's FedWatch tool.

The Fed meets next on July 26-27.

The Dow Jones industrial average was up 221.96 points, or 1.24 percent, at 18,117.84, the S&P 500 was up 28 points, or 1.33 percent, at 2,125.9 and the Nasdaq Composite was up 71.89 points, or 1.47 percent, at 4,948.70.

The rally also put the three indexes on track to gain for the second straight week.

The S&P was trading was just 9 points away from the all-time high of 2,134.72.

All major S&P indexes were higher, led by a 1.57 percent rise in the financials sector.

The CBOE Volatility index or Wall Street's "fear gauge", which has swung wildly since the Brexit vote, was near its lowest level this year on Friday.

Gun makers Smith & Wesson and Sturm Ruger rose about 3 percent on expectations of higher gun sales due to fears of potential gun control policies following the killing of five Dallas police officers.

Advancing issues outnumbered decliners on the NYSE by 2,658 to 322. On the Nasdaq, 2,320 issues rose and 462 fell.

The S&P 500 index showed 55 new 52-week highs and one new low, while the Nasdaq recorded 111 new highs and 10 new lows.

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