Stocks Green On Good Jobs Data
Stocks
opened strong after the Labor Department reported that employers added 248,000
jobs in May, with gains seen in all sectors. 32,000 new jobs went to
manufacturing, the fourth straight monthly increase and the biggest monthly
increase since August 1998. April numbers were revised up to 346,000 and
353,000 in March. The 947,000 jobs created from March to May make it the
strongest three-month stretch in four years. Analysts on the Street are
confident the Fed will raise interest rates by at least 25 basis points.
Fed Funds are pricing in a 28% chance of a 50 bps rate rise in August; last
week, the percentage was zero. Crude prices are lower, touching $38.
Rumors on the street are that General Mills might be brought out by
Nestle for $22 billion; GIS shot up 3% on heavy volume.
Kmart
(
KMRT |
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PowerRating) said
it will sell 24 stores to Home Depot
(
HD |
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PowerRating) for up to $365 million in a
move to improve cash flow.
| Dow | +69.83 | 10265.32 |
| S&P 500 | +8.57 | 1125.15 |
| Nasdaq | +27.80 | 1987.36 |
Strong today are Amex Gold
Bugs
(
HUI.X |
Quote |
Chart |
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PowerRating) +2.46%, Semis
(
SOX.X |
Quote |
Chart |
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PowerRating) +2.10%, Airlines
(
XAL.X |
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Chart |
News |
PowerRating) +1.90%Â Computer Technology
(
XCI.X |
Quote |
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News |
PowerRating) +1.83%,Â
Weak today are Oil
(
XOI.X |
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Chart |
News |
PowerRating)
-0.80%, Energy
(
DXE.X |
Quote |
Chart |
News |
PowerRating) -0.67%.
Economic news releases today:
Nonfarm payrolls that rose by 248,000; unemployment rate that stood flat at
5.6%; hourly earnings that rose to 0.3%, and Average workweek that met consensus
at 33.8.
10-year Notes are -70 at
109 105
The dollar
is -0.30 at 88.70
Gold is -1.90 at 390.00
Crude Oil is -0.70 at
38.58
Volume is 533,000
million on the NYSE, and 722,000 million on the Nasdaq.
Market breadth is positive.
| NYSE | Issues | |
| Advancing | 2127 | Up Vol 397 |
| Declining | 919 | Down Vol 110 |
| Ratio | 2.36 | 3.61 |
| Nasdaq |
||
| Advancing | 2018 | Up Vol 570 |
| Declining | 954 | Down Vol 130 |
| Ratio | 2.11 | 4.38 |
Top Dow stocks are:
Intel
(
INTC |
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PowerRating),
+3.07%, McDonalds
(
MCD |
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Chart |
News |
PowerRating), +1.73%, Boeing
(
BA |
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News |
PowerRating) +1.63%,
General Motors
(
GM |
Quote |
Chart |
News |
PowerRating) +1.56%, Honeywell
(
HON |
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Chart |
News |
PowerRating), +1.44% Â
Stocks in the news:
Computer Associates
(
CA |
Quote |
Chart |
News |
PowerRating) said
Sanjay Kumar will leave the company.
Kumar resigned as chairman in April, but remained as chief software architect.
The company is attempting to settle a long-running criminal accounting probe.
Maytag
(
MYG |
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Chart |
News |
PowerRating)
announced plans to cut 20% of its salaried workforce and merge its Hoover unit
in a major restructuring effort.
Mandalay Resort Group
(
MBG |
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Chart |
News |
PowerRating) rose
higher after reporting earnings of $87.3 million on revenue of $729.4 million
with multiple analysts raising their earnings estimates on the company.
Brice Wightman
bricew@tradingmarkets.com