By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market moved slightly
higher on Friday following an upbeat jobs report, setting up
indexes to post weekly gains.
The U.S. economy added 288,000 jobs in April, while the
unemployment rate fell to 6.3%. However, the details of the report
had puzzling aspects, such as a sharp drop in the labor
participation rate and stagnant wage growth.
The S&P 500 (SPX) added 3 points, or 0.2%, to 1,886.62,
hovering near record closing level. The Dow Jones Industrial
Average (DJI) rose 22 points, or 01%, to 16,580, also trading near
record levels.
The Nasdaq Composite (RIXF) was flat at 4,126.33.
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"The headline number was much better than expected, confirming
that a harsh winter slowed the economy down. But in the end, the
solid gains in jobs growth did not matter, as an improvement was
already priced in," said Kate Warne, investment strategist at
Edward Jones.
"The economy is improving, but not fast enough for the Fed to
change long-term policy. It looks like there are no changes in the
long-term view in bond markets either," she added.
The U.S. generated 288,000 jobs in April -- the biggest increase
in more than two years -- and the unemployment rate fell to 6.3%, a
strong performance that suggests the economy is accelerating after
tepid first-quarter growth. The unemployment rate is the lowest
since September 2008.
Data released Thursday showed jobless claims for last week
jumped to the highest level since February, falling short of Wall
Street estimates. Both the Dow average (DJI) and the S&P 500
(SPX) ended lower after a choppy trading day.
After the data, the dollar (DXY) jumped against the Japanese yen
to above Yen103. U.S. 10-year Treasury yield rose 8bps to 2.68%,
while gold prices fell.
A report on U.S. factory orders is scheduled to be released at
10 a.m. Eastern Time.
On the corporate side, shares of LinkedIn Corp. (LNKD) dropped
3.4% after the online networking service said late Thursday it
swung to a loss of $13.32 million, or 11 cents a share, in the
first quarter from a profit of $22.6 million, or 20 cents a share,
a year ago.
Expedia Inc. (EXPE) dropped 4% after the travel site late
Thursday said its first-quarter loss narrowed to $14.3 million.
Merck & Co. Inc. (MRK) slipped 1.2% after reports German
drug maker Bayer AG is in exclusive talks to buy Merck's
consumer-healthcare unit for $14 billion.
Wynn Resorts Ltd. (WYNN) shares rose 3.7%. The company said late
Thursday its first-quarter adjusted earnings rose to $2.32 a share
from $2.03 a share as net revenue increased 9.8% to $1.51 billion.
The casino operator's results topped analyst expectations.
Akamai Technologies Inc. (AKAM) shares rose 3%. The company
reported late Thursday its first-quarter adjusted earnings rose to
58 cents from 51 cents on revenue that jumped 23% to $454 million,
beating expectations.
U.S.-listed shares of Royal Bank of Scotland Group PLC (RBS)
jumped 8.7%. The bank said Friday its first-quarter profit rose, as
it attempts to reduce costs by focusing on its U.K. operations.
InvenSense Inc. (INVN) shares dropped 5.3%. The company said
late Thursday it swung to a fiscal fourth-quarter loss of $5.6
million, or 6 cents a share, from a year-earlier profit of $13.6
million, or 15 cents a share. Net revenue rose to $59.0 million
from $55.2 million.
In other financial markets, European stock markets wobbled
around the flat line, while Asian bourses closed mixed. Gold (GCM4)
prices came under pressure after the jobs report and oil prices
(CLM4) almost reclaimed the $100-a-barrel level.
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