US close: Stocks rise after jobs data, earnings estimates revised
US equities saw big gains after the release of a US jobs report that calmed worries over the state of the country's labour market, with the S&P 500 closing just two points shy of its previous record.
Dow Jones I.A.
37,986.40
04:30 15/10/20
McDonald's Corp.
$271.99
11:09 19/04/24
Employers added 223,000 jobs in April, compared with a consensus forecast for an increase of 220,000. The unemployment rate was bang in line with estimates, falling to 5.4% last month from 5.5% in March.
To take note of, the latest calculations from Bloomberg indicated that analysts were now estimating profits at S&P companies rose by 0.2% in the first quarter, instead of dropping by 5.8% as they had anticipated at the start of the year.
The Dow Jones Industrials jumped 1.49% to 18,191.11, the S&P 50 rose 1.35% to 2,116.10 and the Nasdaq Composite logged a gain of 1.17% to end at 5,003.55 points.
“The return to more normal jobs growth in April will relieve Fed policy makers, providing tentative evidence that the Q1 economic weakness was mostly a blip,” said Christian Schulz, senior economist at Berenberg.
“Falling unemployment points to a continuing erosion of slack in the economy, which warrants policy rate normalisation rather sooner than later. Weak wage growth and headline inflation rates around zero still allow the Fed some time, but today’s release has kept chances for a September rate hike alive, especially if other indicators such as the ISM rebound as well.”
The US 10-year Treasury yield fell four basis points to 2.14% following the employment data.
Acting as a backdrop, data from China showed exports and imports fell in April, fuelling hopes of further stimulus. “Trade data from China overnight was pretty horrible with exports and imports plunging again over the year, Asian equities responded well on the prospect for further government stimulus but the data doesn’t bode well for world growth,” said Jasper Lawler, market analyst at CMC Markets.
Among corporate stocks, AOL jumped after its first quarter results impressed investors. It reported a better-than-expected 7.2% increase in revenue amid stronger advertising.
McDonald’s was a high riser after reporting April sales that beat analysts’ projections , supported by a slower decline at its US business.
From a sector standpoint, the largest gains were to be seen in the following industrial groups: Consumer electronics (4.12%), Coal (3.25%) and Real Estate Holdings (2.9%)
West Texas Intermediate crude futures advanced 0.90% to $59.47, ICE data showed.
S&P 500 - Risers
Southwestern Energy Co. (SWN) $28.94 +5.85%
Range Resources Corp. (RRC) $64.29 +5.74%
NRG Energy Inc. (NRG) $26.40 +5.73%
Chesapeake Energy Corp. (CHK) $15.28 +5.38%
Transocean Ltd. (RIG) $19.26 +5.19%
Harman International Industries Inc. (HAR) $129.28 +4.55%
TripAdvisor Inc. (TRIP) $81.93 +4.41%
Visa Inc. (V) $69.47 +4.34%
Noble Corporation plc (NE) $17.10 +4.20%
Nabors Industries Ltd. (NBR) $16.31 +4.02%
S&P 500 - Fallers
Monster Beverage Corp (MNST) $128.47 -10.47%
Nvidia Corp. (NVDA) $20.83 -7.40%
Windstream Holdings Inc (WIN) $9.18 -6.61%
Cerner Corp. (CERN) $68.02 -4.53%
Salesforce.Com Inc. (CRM) $72.40 -2.84%
Pepco Holdings Inc. (POM) $25.49 -2.41%
Teradata Corp. (TDC) $40.86 -2.25%
Whole Foods Market Inc. (WFM) $42.58 -1.13%
Gap Inc. (GPS) $39.61 -1.07%
Macerich Co (MAC) $82.07 -0.82%
Dow Jones I.A - Risers
Visa Inc. (V) $69.47 +4.34%
Boeing Co. (BA) $145.46 +2.81%
E.I. du Pont de Nemours and Co. (DD) $75.28 +2.66%
Microsoft Corp. (MSFT) $47.75 +2.25%
Home Depot Inc. (HD) $112.47 +2.21%
United Technologies Corp. (UTX) $118.43 +2.06%
Apple Inc. (AAPL) $127.62 +1.88%
Johnson & Johnson (JNJ) $101.47 +1.82%
Intel Corp. (INTC) $32.80 +1.72%
Exxon Mobil Corp. (XOM) $88.99 +1.59%
Dow Jones I.A - Fallers
Nasdaq 100 - Risers
TripAdvisor Inc. (TRIP) $81.93 +4.41%
Biogen Inc (BIIB) $398.43 +3.95%
Wynn Resorts Ltd. (WYNN) $117.84 +3.41%
Keurig Green Mountain Inc (GMCR) $101.49 +3.39%
Vimpelcom Ltd Ads (VIP) $5.41 +3.24%
Nxp Semiconductors Nv (NXPI) $103.98 +3.22%
Cognizant Technology Solutions Corp. (CTSH) $63.09 +2.90%
Amgen Inc. (AMGN) $162.34 +2.81%
Regeneron Pharmaceuticals Inc. (REGN) $481.29 +2.70%
Intuit Inc. (INTU) $102.75 +2.68%
Nasdaq 100 - Fallers
Monster Beverage Corp (MNST) $128.47 -10.47%
Nvidia Corp. (NVDA) $20.83 -7.40%
Liberty Interactive Corp (QVCA) $27.70 -4.71%
Cerner Corp. (CERN) $68.02 -4.53%
Liberty Global plc Series A (LBTYA) $50.41 -3.24%
Charter Communications Inc. (CHTR) $180.67 -1.25%
Whole Foods Market Inc. (WFM) $42.58 -1.13%
Priceline Group Inc (PCLN) $1,204.76 -0.72%
Discovery Communications Inc. Class A (DISCA) $31.33 -0.56%
Viacom Inc. Class B (VIAB) $66.44 -0.36%