By Victor Reklaitis, MarketWatch
NEW YORK (MarketWatch)--U.S. stocks notched intraday records on
Friday after a solid jobs report, leaving the S&P 500 on track
for its strongest week since mid-April while the previously
pummeled small-cap Russell 2000 index turned positive for the
year.
The S&P 500 (SPX) advanced 7 points, or 0.4%, to 1,948. The
index hit an all-time intraday high and worked on achieving a
record close for the third straight day. The benchmark has set 17
record closes so far this year and is up 1.3% for the week, marking
its strongest weekly percentage rise since April 17.
The Dow Jones Industrial Average (DJI) rose 78 points, or 0.5%,
to 16,914, leaving the blue-chip index on pace for its second
straight record close and a 1.2% weekly gain. It also hit an
intraday record Friday and has notched seven closing records so far
this year.
The Nasdaq Composite (RIXF) jumped 23 points, or 0.5%, to 4,319.
The tech-heavy index is eyeing a weekly advance of 1.8% and trading
at levels last seen in late March.
The Russell 2000 (RUT) climbed nearly 10 points, or 0.9%, to
1,163.92, putting the small-cap index on track for a 2.6% gain for
the week. It has turned barely positive for the year--up less than
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) was down nearly 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) is drawing 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% 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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