Stocks Rally Across-The-Board

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U.S. stocks rallied more than 1% across-the-board by mid-day trade on Friday as chances that the Federal Reserve could continue with its multi-billion asset purchase program, increased significantly, following the release of decent but not so strong enough nonfarm payrolls data.

At last check, the DJIA jumped 1.21%; the NASDAQ Composite Index gained 0.98% while the S&P 500 Index climbed 1.07%.

Among all key S&P sectors, both health care and consumer staple stocks gained the most.

Earlier today, the Labor Department’s nonfarm payrolls data for May showed that 175,000 jobs were added in the economy against economists’ forecast for 160,000 gains. Market strategists believe that the job data is not strong enough to convince the Fed to pullback its economic stimulating measures.

“Today’s employment report doesn’t really convey the definite economic strength that the Fed is looking for,” said Pat Ahn, a MBS trader at TCW Group, according to the Wall Street Journal.

Meanwhile, the unemployment rate rose to 7.6% in May from 7.5% in the previous month.

Shares of Thor Industries Inc. (NYSE: THO) rallied on Friday. The recreational vehicle maker, late last evening said that fiscal third quarter earnings 6%, boosted by higher revenue. Even though earnings missed Wall Street estimate, revenue was in-line with expectation.

Shares of Cooper Companies Inc. (NYSE: COO) gained about 5% by midday trade after the contact lens maker late on Thursday said that fiscal third quarter income rose 37%, boosted by stronger margins and higher revenue.

Elsewhere in Europe, all major averages gained sharply after the job data release.

 

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.