By Victor Reklaitis and William L. Watts, MarketWatch
NEW YORK (MarketWatch)--U.S. stocks rallied further into record
territory Friday after a solid jobs report, leaving the S&P 500
and Dow industrials with their strongest weekly performances since
mid-April while the previously pummeled small-cap Russell 2000
index turned positive for the year.
The S&P 500 (SPX) advanced 8.98 points or 0.4%, to 1,949.44,
notching its 18th record close of the year and its third straight
record finish. The benchmark index advanced 1.3% for the week,
marking its strongest weekly percentage rise since April 17.
The Dow Jones Industrial Average (DJI) rose 88.17 points, or
0.5%, to 16,924.28, giving the blue-chip index its second straight
record close and a 1.2% weekly gain. It has notched eight closing
records so far this year. The Dow's weekly rise was also its
strongest since April 17. The S&P 500 and the Dow have each
seen three straight weekly gains.
The Nasdaq Composite (RIXF) jumped 25.17 points, or 0.6%, to
4,321.40. The tech-heavy index posted its fourth straight weekly
advance, gaining 1.8% from last Friday's close and trading at
levels last seen in late March.
The Russell 2000 (RUT) was up 11.23 points, or 0.9%, at
1,165.17, putting the small-cap index on track for a 2.7% weekly
gain. After serving as Wall Street's whipping boy this spring, the
index on Friday turned barely positive for the year--up 0.1%.
Analysts had worried in mid-May that the drop by more economically
sensitive small caps would spread to the broader market, but the
Russell 2000 has ended up finding a bottom and rallying.
The U.S. economy added 217,000 jobs in May, and the unemployment
rate held steady at 6.3%, the Labor Department said Friday.
Economists polled by MarketWatch had expected a gain of 210,000,
with the unemployment rate rising to 6.4% from 6.3% in April.
In the wake of Friday's jobs report, investors "seem to believe
that there is no reason to rip up the script," said Andrew
Wilkinson, chief market analyst at Interactive Brokers, in emailed
comments. "Monetary stimulus is likely to remain evident even as
the taper-countdown goes on, which means that bond yields are
likely to remain low thus underpinning the rally in equity prices
to fresh record highs." (Read more: 'Solid report all around'--May
jobs reactions
http://www.marketwatch.com/story/solid-report-all-around-may-jobs-reactions-2014-06-06.)
On Thursday, the S&P 500 and Dow industrials both nabbed
their best gains since May 21, helped by the European Central Bank
announcing a raft of stimulus measures.
Among individual stocks on Friday, Hertz Global Holdings
Inc.(HTZ) fell more than 9% after the car-rental company said it
would have to restate and correct its results from 2011 through
2013.
Bank of America Corp. (BAC) drew attention after The Wall Street
Journal reported the bank is in talks to pay a fine of at least $12
billion to settle probes tied to toxic mortgages. Shares rose
1%.
E-Trade Financial Corp.(ETFCD) was among top gainers in the
S&P 500, rising 4.4% after reportedly drawing an upbeat note
from Nomura Securities analysts, who backed their buy rating.
In other markets, European stocks continued to push higher after
the Stoxx Europe 600 closed at the highest level in six years on
Thursday, driven by the ECB's moves. Asian stocks finished largely
mixed on Friday, with the wait for U.S. jobs data keeping a lid on
the action. September gold (GCZ4) edged lower, while July oil
(CLN4) managed a small rise.
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