US stocks climb on strong June jobs report; banks rise
NEW YORK — Stocks are rising Friday following a U.S. jobs report that was much stronger than investors expected. That was a relief for the market after a weak report in May made some investors worry the U.S. economy is slowing down. Banks, which have struggled this year, made the biggest gains.
KEEPING SCORE: The Dow Jones industrial average surged 191 points, or 1.1 percent, to 18,087 as of 11:36 a.m. Eastern time. The Standard & Poor’s 500 index rose 26 points, or 1.2 percent, to 2,123. The Nasdaq composite advanced 65 points, or 1.3 percent, to 4,941.
US JOBS RELIEF: Employers added 287,000 jobs in June, according to a Labor Department report. The unemployment rate rose slightly as more people looked for work, and there was evidence that wages were rising faster. That suggests the economy is recovering from a slump the last few months. April’s somewhat disappointing hiring number was revised higher while May’s weak figures were cut even further. The April and May reports worried investors in part because they came after the economy grew just 1.1 percent in the first three months of 2016. The U.S. economy has been growing for more than six years and investors are wary that that streak could end.
GAP GAINS: Retailer Gap climbed after it said sales at older stores grew in June as Old Navy results improved. Sales at those stores are considered an important measure of retailers’ results, and Thomson Reuters said it was the first improvement in that gauge for Gap in more than a year. Analysts expected another decline this month.
Gap stock rose $1.17, or 5.4 percent, to $22.80. The stock is down 6 percent this year.
POLYCOM GOES PRIVATE: Videoconferencing equipment maker Polycom said it will be taken private by Siris Capital. It accepted an offer from Siris worth $12.50 per share, or $1.7 billion. Polycom accepted an offer from Mitel Networks in April. Polycom stock gained $1.40, or 12.8 percent, to $12.27. Mitel, which will get a $60 million payment from Polycom, climbed $1.06, or 17.5 percent, to $7.08.
JUNO STUDY: Drug developer Juno Therapeutics said it halted a mid-stage study on a potential leukemia treatment following the deaths of two patients. The study involved the company’s most advanced experimental drug, and Juno said the deaths of the patients came after an additional chemotherapy drug was added to their treatment. The stock sank $12.64, or 31 percent, to $28.18.
IN THE BANK: Bank stocks made the largest gains. If reports show the economy is on surer footing, the Federal Reserve is more likely to raise interest rates later this year, and that would help banks make bigger profits on mortgages and other lending. Banks are the only S&P 500 industrial sector in the market that’s still lower for the year. JPMorgan Chase picked up $1.37, or 2.3 percent, to $61.95. Capital One rose $66, or 4.3 percent, to $64.5 and Synchrony Financial added $1.38, or 5.3 percent, to $27.40.
BARRACUDA GOES SWIMMING: Cloud-based security and storage service company Barracuda Networks reported solid quarterly results and raised its projections for the year. Its stock jumped $2.51, or 16.2 percent, to $18.02.
OIL: Energy prices were little changed. Benchmark U.S. crude added 17 cents to $45.31 a barrel in New York. Brent crude, a standard for international oil prices, picked up 22 cents to 46.62 a barrel in London.
LAGGARDS: Utilities companies didn’t move much and household goods makers also lagged the market. Those stocks, considered some of the safest investments available, have outperformed the market as investors looked for protection. Phone and utility companies are the best-performing sectors of the market in 2016.
OVERSEAS: Germany’s DAX rose 2.2 percent and the CAC-40 in France was 1.7 percent higher. In Britain, the FTSE 100 added 0.9 percent. Japan’s Nikkei 225 closed 1.1 percent down. Hong Kong’s Hang Seng index shed 0.7 percent and South Korea’s KOSPI lost 0.6 percent.
BONDS, CURRENCIES: Bond prices were mixed, with yields not far from record lows. The yield on the 10-year Treasury note remained at 1.39 percent. The yield on the 30-year Treasury bond dipped to 2.13 percent from 2.14 percent. The dollar dipped to 100.71 yen from 100.76 yen Thursday. The euro declined to $1.1039 from $1.1055. TVJ
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