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U.S. stocks soar, as job gains push NASDAQ, S&P to record closing highs

Published 08/05/2016, 04:55 PM
Updated 08/05/2016, 05:02 PM
The Dow, NASDAQ and S&P 500 all rose sharply in Friday's session

Investing.com -- U.S. stocks rose considerably on Friday, as stronger than expected jobs data in July helped bolster the financial sector, propelling the NASDAQ Composite index and the S&P 500 to all-time record closing highs.

Last month, U.S. nonfarm payrolls surged by 255,000, the Labor Department said on Friday, topping the high end of analysts' expectations by 70,000 and erasing lingering concerns that June's robust report may have been a fluke. The Labor Department also upwardly revised June gains by 5,000 to 292,000, helping erase some negative sentiments from a disappointing report in May when the labor market added only 24,000 jobs. The solid figures could compel the Federal Reserve to consider raising interest rates when the Federal Open Market Committee (FOMC) meets again in September.

As a result, stocks on Wall Street turned in one of their strongest one-day performances since early-July, placing a temporary halt to a two-week period of range-bound, sideways trading. The Dow Jones Industrial Average gained 191.48 or 1.04% to 18,543.53, while the NASDAQ added 54.87 or 1.06% to 5,221.12, soaring to a fresh record close for the first time in more than a year. The gains were fueled by major tech stocks such as Apple Inc (NASDAQ:AAPL) and Micron Technology Inc (NASDAQ:MU), which posted sharp gains in Friday's session. The NASDAQ last closed at a record-high on July 20, 2015 when it ended the session at 5,210.14.

The S&P 500, meanwhile, added 18.62 or 0.86% to 2,182.87, moving back into record territory. On the S&P 500, eight of 10 sectors closed in the green as stocks in the Financials and Technology industries led. Stocks in the interest-rate sensitive Utility sector lagged, falling by 1.31% for the session.

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The top performer on the Dow was Merck & Company Inc (NYSE:MRK), which gained 6.02 or 10.41% to 63.86. Merck (NYSE:MRK) shares received a boost after rival BMY reported disappointing results with a late stage clinical trial for treating advanced non-small cell lung cancer. On Friday shortly before markets opened, Bristol-Myers announced that its drug Opdivo failed to significantly outperform chemotherapy treatment in a study of newly-diagnosed lung cancer patients. The results could jeopardize Bristol-Myers chances of gaining regulatory approval by the U.S. Food and Drug Administration (FDA) for the usage, while paving the way for Merck to capitalize with sales of its drug Keytrada. The worst performer was VZ Holding AG (SIX:VZN), which fell 0.29 or 0.54% to 53.64.

The biggest gainer on the NASDAQ was Symantec Corporation (NASDAQ:SYMC), which added 0.86 or 4.07% to 21.89. Earlier, the cybersecurity firm reported earnings of $135 million and revenue of $884 million for its first quarter of 2017, slightly beating analysts' forecasts of $878.1 million. The worst performer was Liberty Interactive Corp A (NASDAQ:QVCA), which tumbled 5.69 or 21.63% to 20.61. While Liberty Interactive reported earnings growth of 13% last quarter, CEO Greg Maffei warned that the company could be moving into a "choppy retail environment," marred by weakening consumer demand. At one point on Friday, shares in the Colorado-based media holdings company hit a 52-week low at $19.92.

On the New York Stock Exchange, advancing issues outnumbered declining ones by a 2,133-824 margin.

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