Wall Street Holds On To Record Gains After Jobs Miss

Michael Teague |

Stocks consolidated the previous day’s record-breaking gains on Friday, as Wall Street finished slightly higher heading in to the weekend.

The Standard & Poor’s 500 closed for the second straight session above 1,700, on an advance of 0.16 percent to 1,709.67 points, while the Dow Jones Industrial Average finished 0.19 percent higher at 15,658.36 points, and the NASDAQ logged the day’s most substantial gain of 0.38 percent to end the week at 3,689.59 points.

Indices started the day lower as the monthly jobs report was released indicating that the economy added 162,000 jobs in the month of July, well short of the 185,000 expected by economists, while the number of jobs added in June was revised downward from 195,000 to 188,000. Unemployment dropped to 7.4 percent, but mostly due to the fact that more people have simply stopped looking for employment. Meanwhile, the data showed an uptick in part-time jobs, while the number of full time jobs has dropped.

The news seemed to eventually reassure investors about the persistence of Federal Stimulus. The yield on 10-year Treasury notes dropped 4.44 percent to $2.60, and gold got a brief respite, crawling over $1,300 per ounce, ending the day 0.31 percent lower at $1,307.10 per ounce. The jobs report was not too dismal to cause alarm, but not good enough to rejuvenate fear about the Federal Reserve’s reduction of asset purchases.

Tech shares propped up the S&P 500, with the highest volume gains registered by Dell Inc. (DELL) , after founder Michael Dell upped his offer to shareholders to take the company private. Hewlett-Packard (HPQ) and Sprint Nextel (S) also ended the day significantly higher. Oil and gas stocks dragged on the index however despite a number of earnings beats reported by Tesoro Corporation (TSO) , Marathon Petroleum Corporation (MPC) , and Phillips 66 (PSX) .

Energy stocks also weighed on the Dow’s performance, with Chevron (CVX) dropping over 1 percent on news that the company missed earnings-per-share estimates during the second quarter by a wide margin, while Exxon Mobil (XOM) continued to dip for the same reason after releasing its earnings report the previous day.

On the NASDAQ, tech shares also played a strong supporting role, with Facebook (FB) , Cisco Systems (CSCO) , and QUALCOMM Incorporated (QCOM) ending the day higher on heavy trading.

Shares for drug manufacturer Mylan ($MYL) climbed briskly throughout the day to finish up 7 percent to $36.40 after the company released its earnings report after beating EPS estimates by $0.01.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. 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: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
CVX Chevron Corporation 113.00 -0.29 -0.26 6,167,368
FB Facebook Inc. 115.40 0.30 0.26 25,070,364
MPC Marathon Petroleum Corporation 47.80 0.06 0.13 4,422,890
S Sprint Corporation 7.98 0.04 0.50 8,775,180
PSX Phillips 66 84.88 -0.10 -0.12 2,104,372
CSCO Cisco Systems Inc. 29.25 -0.20 -0.68 27,069,499
XOM Exxon Mobil Corporation 87.04 -0.20 -0.23 9,706,646
HPQ HP Inc. 15.12 0.06 0.40 8,377,096
MYL Mylan N.V. 35.99 -0.04 -0.11 3,543,448
QCOM QUALCOMM Incorporated 65.84 1.68 2.62 9,687,015
ADVC Advant-E Corporation 4.80 0.00 0.00 0

Comments

Emerging Growth

Broadway Gold Mining Ltd.

Broadway Gold Mining Ltd is engaged in the exploration of mineral resources. The Company owns a 100% interest in the Madison Gold and Copper Mine located in Southwestern Montana.

Private Markets

Santo Diablo Mezcal

Santo Diablo Mezcal has been created to capitalize on a boom sector of the beverage market currently full of many small unmemorable products by producing one sexy, household, easily recognizable…

Pinterest

Pinterest is a visual discovery and planning tool. Users ("Pinners") use the site and apps to get ideas for their future, such as recipes, places to travel, and products to…