An historic day on Wall Street was ignited by another gain in
new job creation, coupled with a decline in the jobless rate. The
news sent the Dow Industrials through a key psychological milestone
of 17,000 and inspired record highs for both the S&P 500 and
Nasdaq Composite in this abbreviated session. The gains swept
through all sectors, with the exception of utilities, health care
and telecoms. Industrials put in the best performance as Wall
Street cheered the combination of an above-consensus gain in
payrolls seen not strong enough to alter Federal Reserve monetary
U.S. markets are closed Friday for Independence Day.
Non-farm payrolls rose 288,000 in June, beating estimates for a
211,000 increase and followed an upward revision to April and May
to 304,000 and 224,000, respectively. The result dropped the
jobless rate to 6.1% from 6.3% the month prior.
In addition to the employment data, the U.S. trade deficit
narrowed to 5.6% $44.4 billion, beating estimates for a $45.1
Lost in the excitement of the payroll report was a 2,000 gain in
initial jobless claims to 315,000 new claims, slightly above the
314,000 new claims expected.
In the services sector, the Institute for Supply Management
non-manufacturing index fell to 56.0 in June from 56.3 prior, while
the Purchasing Manager's final index for the services sector was
revised to 61.0 from 58.1 in May.
European markets shared in Wall Street's good fortune, closing
higher across the continent. Interest rates took center stage in
Europe after the European Central Bank left rates unchanged but
opened the door for further rate cuts, while the Swedes cut their
key lending rates by a greater-than-expected 50 basis points.
Crude oil was down $0.71 to $103.77 per barrel. Natural gas was
up $0.01 to $4.36 per 1 million BTU. Gold was down $10.50 to
$1,320.10 an ounce, while silver was down $0.13 to $21.17 an ounce.
Copper was up $0.01 to $3.28 per pound.
Among energy ETFs, the United States Oil Fund was down 0.37% to
$38.27 with the United States Natural Gas Fund was up 0.15% to
$24.04. Amongst precious-metal funds, the Market Vectors Gold
Miners ETF was down 0.29% to 26.42 while SPDR Gold Shares was down
0.49% to $127.09. The iShares Silver Trust was down 0.07% to
Here's where the markets stand at the close:
The S&P 500 up 10.82 (+0.6%) at 1,985
The Dow Jones Industrial Average up 92.02 (+0.5%) at 17,068
The Nasdaq Composite up 28 points (+0.6%) at 4,485
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