Dow Jones industrial average closes at record high after surprise surge in hiring last month
The gains were led by banks, such
as Bank of America and JPMorgan Chase, which stand to benefit from a
pickup in lending as the economy strengthens. Consumer-focused stocks
such as Priceline.com and Disney also rose after reporting higher
profits, and Gap soared after raising its earnings forecast. Losers
included housing stocks and Twitter, which dropped 7 percent the day
after its initial public offering.
The Dow gained 167.80 points, or 1.1 percent, to 15,761. The Dow also closed at a record high on Wednesday.
The Standard & Poor's 500 index ended 23.46 higher, or 1.3 percent, at 1,770.61, just a point below its record. The Nasdaq composite rose 61.90 points, or 1.6 percent, to 3,919.23.
Both the Dow and the S&P 500 recovered all of their losses from Thursday, when concern about the Fed withdrawing its stimulus outweighed optimism about faster economic growth.
The reaction to the jobs report was even more pronounced in the bond market. The yield on the 10-year Treasury note jumped to the highest in six weeks as investors sold bonds, anticipating less demand for them if the Fed slows its purchases. Rising interest rates are a sign that investors are more confident in the economy. They are a boon to banks because it means that they can lend money at higher rates.
The yield on the 10-year note
jumped to 2.75 percent from 2.60 percent on Thursday, the highest level
since Sept. 20. JPMorgan Chase rose $2.31, or 4.5 percent, to $53.96.
Bank of America gained 52 cents, or 3.8 percent, to $14.32.
CW8888: Why no power in STI?
Posts
No comments:
Post a Comment