Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Wall Street closes higher after biggest payrolls jump on record

Published 07/02/2020, 07:09 AM
Updated 07/02/2020, 05:05 PM
© Reuters. The spread of the coronavirus disease (COVID-19) in New York

© Reuters. The spread of the coronavirus disease (COVID-19) in New York

By Stephen Culp

NEW YORK (Reuters) - Wall Street closed higher and the Nasdaq reached an all-time closing high on Thursday as investors headed into their long holiday weekend buoyed by a record surge in payrolls, which provided assurance that the U.S. economic recovery was well under way.

All three major U.S. stock averages advanced, with the benchmark S&P 500 posting its fourth straight daily gain.

Massive stimulus and hopes for a speedy economic rebound have returned the S&P 500 and the Nasdaq to 7.6% and 12.6% below their record highs reached in February.

The indexes registered strong gains for the week.

The U.S. economy added 4.8 million jobs in June according to the Labor Department, 1.8 million more than analysts expected, setting a second consecutive record.

Massive rehiring sent the unemployment rate down to 11.1%.

"There was a lot to like in economic data for the week," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. "And there's still talk that there will be more stimulus from Washington after they get back from the Fourth of July break."

Still, even with May and June's consecutive record payroll gains, the labor market has still recovered only a fraction of the 22 million jobs lost in the March-April plunge.

The recovery of the U.S. economy, now in its sixth month of recession, could stall as new cases of COVID-19 hit record levels and several states hit hardest by the resurgence halted or reversed plans to reopen their economies.

On Thursday, Florida reported a record-shattering 10,000 new cases of the disease, worse than any European country reported at the peak of their outbreaks.

"With the spikes (in new COVID-19 cases) we've seen the larger states - Texas, California and Florida - those states have taken steps to turn back their re-opening plans," Nolte added. "And that will slow the overall growth and consumer spending in those regions."

In the coming weeks, market participants will train their focus on second-quarter reporting season. In aggregate, analysts now expect S&P earnings to have dropped by 43.1% as companies grappled with plunging demand and disrupted supply chains.

The Dow Jones Industrial Average (DJI) rose 92.39 points, or 0.36%, to 25,827.36, the S&P 500 (SPX) gained 14.15 points, or 0.45%, to 3,130.01 and the Nasdaq Composite (IXIC) added 53.00 points, or 0.52%, to 10,207.63.

The CBOE Volatility index (VIX), a barometer of investor anxiety, logged its largest weekly point drop since the week ending May 8.

Of the 11 major sectors in the S&P 500, all but real estate <.SPLRCR> and communications services (SPLRCL) closed higher, with materials (SPLRCM) enjoying the largest percentage gain.

Microsoft Corp (O:MSFT) provided the biggest boost to the S&P 500, and in June retained its top spot as the most globally invested stock, according to data from trading platform eToro.

Tesla Inc (O:TSLA) jumped 8.0% after the electric car maker's second-quarter vehicle deliveries beat Wall Street estimates.

Advancing issues outnumbered declining ones on the NYSE by a 1.90-to-1 ratio; on the Nasdaq, a 1.28-to-1 ratio favored advancers.

The S&P 500 posted 36 new 52-week highs and no new lows; the Nasdaq Composite recorded 123 new highs and 10 new lows.

Volume on U.S. exchanges was 10.03 billion shares, compared with the 13.24 billion average over the last 20 trading days.

© Reuters. The spread of the coronavirus disease (COVID-19) in New York

Latest comments

each side blames the other side ignoring what is clear and obvious. One guy promised to drain the swamp and the other promised hope and change. Yet nothing has changed and the swamp gets bigger and smells more unearthly than ever before.
Dems will make more drama to hammer down the market and cast grey cloud to American people. Stay tuned.
records today 51000 Infections Florida 10000....
jobs rise?
yes! maga!!!
https://www.cnn.com/2020/07/02/health/coronavirus-hospitalizations-rates-rise/index.html
CNN??? hahahahahahahahhahahahahahah
And it looks like they photo shopped some masks onto the photos from 1998
I guess the media and the government really think that there was &quot;record job growth&quot;
Reality check time..The US economy created 4.8 million jobs in June. But that's not the whole storyhttps://www.cnn.com/2020/07/02/economy/june-2020-jobs-report-coronavirus/index.html
CNN???? hahahahaha you must be kidding...
CDC online report showed death rate of 0.05% for people up to 49yo; O type blood 35% less likely to get sick. There are several vaccines on late stage trials with very good results that can and will be administered in critical hospitalization cases if needed. There are 2 powerful drugs already in use, remdesivir and the other one steroid based. By the time a real 2nd wave hits, it's gonna be as worrying as the regular flu.
it's not *****the workforce or the young. as sad and deadly as it is it does not impact the real economy...unless the crazy demtards governors close the economy to hurt trump
ki.ll.ling
Think about this for a moment: the lockdown kept young, healthy people away from each other, reducing infections among those who are least vulnerable while it ravaged the older people. Now healthier people are getting it, but they are not dying at high rates. This should be no surprise and will build the herd immunity among the entire population. Another lockdown will only delay the critical immunity we need.
I predict that the number of cases will continue to rise for at least a month, then drop dramatically as more people become immune. This is a noval virus pandemic, not the end of the world.
i can tell you the future: COVID-1984 will magically disappear November 4, 2020
&quot;surging virus cases&quot; does not cap gains. people just see that COVID-1984 is pure nonsense. dea.th rate much lower than initially portrayed. most countries not even testing asymptomatic people anymore because they see it is a waste. democrats are soon going to go back to looting and rioting because they see this virus panic isnt working anymore.
&quot;surging virus cases&quot; does not cap gains. people just see that COVID-1984 is pure nonsense. dea.th rate much lower than initially portrayed. most countries not even testing asymptomatic people anymore because they see it is a waste.
&quot;surging virus&quot; isnt capping anything. people see through the COVID-1984 nonsense. all fearmongering, death rate much much lower than initially projected. all this testing is a waste of money.
It didn't create any jobs. It just got back some of the 40 million it lost..
More testing = higher numbers. Dems = DumDums. both are undeniable facts
Reuters still riding the horse named Covid19. So let me get it right: some would like another lockdown in US without similar situation in China....??
Its what the media would want. Just google any number from 100 to 999 and add new cases. Example, 137 new cases. You will literally get an article for each number.
yeah...implementing lockdown in US and watching China's economy booming in &quot;recovery&quot;....
Reuters still riding on the dead horse named Covid19. So lemme understand: some would like another lockdown in US without having similar lockdown in China...uhum..when pigs fly.
Classic pump and dump.
its time to start buying.
Again.. all of you need to sell, sell, sell.. more for me to buy.
Planty to buy if you want to... go ahead and have your fun!
Who cares about the Nasdaq?  My precious Dow is in the toilet!!!
bro nasdaq is a bubble don't buy!
but not the gold..gimme a break
The bear is waiting in the corner...
how can I predict market direction of Nasdaq based on news...what do I need to know if Nasdaq will drop or raise
read all news and take it in to get q better view of how its gonna perform. also NASDAQ seems to have been running too clean, its gonna have a bear day soon.
Meaningless data, even if accurate.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.