Stocks Firing on All Cylinders After Better Than Expected Jobs Figures

Michael Teague |

With the Labor Department’s much anticipated jobs report giving markets just the positive economic data they needed, stocks extended the previous day’s late rally to close the week of trading on strong gains.

For the month of May, nonfarm payrolls were at 175,000, a nice bump up over expectations of 163,000. Private payrolls were also ahead of expectations of 175,000 at 178,000. Manufacturing payrolls were down 8,000, short of economist expectations of a gain of 4,000, while there was no movement in hourly earnings.

Meanwhile, the unemployment rate actually increased one tenth of a point to 7.6 percent.

The beat on payrolls was welcome, though not large enough to avoid being wiped out by subsequent downward revisions, but the 0.1 percent increase in unemployment was a catalyst for stocks. A slight increase in unemployment means that more people are actually looking for jobs to begin with, and this could signal the reversal of a trend that has seen many simply stop looking for work altogether.

More importantly, however, the bump in the unemployment rate also gave investors hope that the Federal Reserve will be forced to keep the stimulus money flowing.

The S&P 500 advanced 20.82 points on the day to close at 1,643.38, a gain of 1.28 percent, while the Dow jumped 1.38 percent to 15,248.12. The Nasdaq was up 1.32 percent, to close the week at 3,469.21 points.

The S&P 500 was propped up by strong performances from tech and financial stocks, with Morgan Stanley (MS) the leading gainer on the index, followed by Goldman Sachs (GS) and Citigroup (C). Xerox Corp. (XRX) led tech upwards, with Microsoft (MSFT), Yahoo! (YHOO) and (CRM) in tow.

26 of the Dow’s 30 components were up on the day, and Google (GOOG) ended the week on an advance of 1.75 percent to $879.37 on the heels of Thursday’s shareholder meeting.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
C Citigroup Inc. 49.58 0.01 0.02 10,718,248
CEA China Eastern Airlines Corporation Ltd. 23.74 -0.31 -1.29 16,310
CRM Inc 75.06 1.06 1.43 6,290,554
GOOG Alphabet Inc. 813.11 13.74 1.72 1,647,823
GS The Goldman Sachs Group Inc. 175.12 0.45 0.26 1,934,899
MS Morgan Stanley 33.38 -0.06 -0.18 9,173,011
MSFT Microsoft Corporation 61.00 1.34 2.25 51,890,045
XRX Xerox Corporation 9.68 0.18 1.89 4,755,842
YHOO Yahoo! Inc. 42.59 0.42 1.00 4,311,215


Emerging Growth

Beleave Inc.

Beleave Inc is a biotech company. The Company is engaged in the production of medical marijuana under the Marihuana for Medical Purposes Regulations outlined by Health Canada.

Private Markets

Ozobot by Evollve Inc

Ozobot is a world leader in compact super intelligent robots that entertain and educate through fun interactive gaming.

XY Find It

Founded by serial entrepreneur Arie Trouw, XY Findables follows a single guiding principle: customers should never lose anything important again. With over 50,000 users around the world, more than 100,000…