US payroll employment increased by 222,000 jobs in June and unemployment remained unchanged. Indexes were all broadly up.
The Dow closed up 0.44% to 21,414.34, the S&P 500 rose 0.64% to 2,425 and Nasdaq climbed 1.04% to 6,153.
Jobs data helped to fuel home construction (+2.79%), business training and employment agencies (+2.72%) and travel and tourism (2.73%) industries a top leaders in trading today. D.R. Horton, homebuilder, saw a +3.77% rise as did competitor, Lennar Corp up +3.10%.
Energy stocks remained under pressure as oil prices moved lower following a volatile week with Chesapeake Energy tumbling -2.58% along with Hess Corp, down -2.43% and Devon Energy, -2.12%.
- Dow 21,320 -0.74%
- S&P 500 2,410 -0.94%
- Nasdaq 6,089 -1%
- Russell 2000 1,401 -1.36%
- NYSE Composite 11,702 -0.91%
- Gold 1,209 -0.05%
- Oil WTI $45.38 -0.31%
- 10-Year Treasury Yield 2.36% 0.046
Techs continued to rally. Packaged software company, 2U went up +2.89% with Netflix rising +2.69%. Symantec climbed +2.49% and Applied Materials went up +3.40%.
Jobs pick up means Fed stays the course
The US Bureau of Labor Statistics released its June employment figures showing nonfarm payroll increased by 222,000 in June with jobs picking up in health care, social assistance, financial activities and mining.
The unemployment rate was little changed at 4.4%. Expert commentators see this key report and strong data as helping to keep the Federal Reserve on track for a rate rise at the September meeting where they are also likely to begin their portfolio reduction programme.
The Fed's next meeting at the end of July is expected to keep rates unchanged from their quarter percentage hike back in June. The US economy is looking perkier, a buoyant stock market and although a lower inflation could prove to be short-lived the central bank is likely to instigate its gradual policy of returning to normal.
The dollar fell in response to the stagnant wage report as hourly wages rose just 0.2% in June to $26.25. Oil's steep descent continues on oil glut worries and gold flounders finishing down 1.1% to $1,209.