U.S. Stocks Rise Amid Speculation of Upbeat Jobs Report

Strategic Insights -

U.S. stocks bounced back from a loss earlier in the day, as investors speculated that a forthcoming jobs report would boost optimism about the economy, while concerns about slowing growth in China took a backseat. The S&P 500 Index gained 0.4% to 1,102.83, with Microsoft and Cisco leading advances in the Dow Jones Industrial Average. The market's performance was also boosted by positive signs from the Institute for Supply Management's non-manufacturing index, which showed a fifth consecutive month of expansion.

Key Takeaways:

  • The S&P 500 Index rose 0.4% to 1,102.83, marking its first back-to-back gains since April.
  • Microsoft Corp. and Cisco Systems Inc. led advances in the Dow Jones Industrial Average.
  • Dell Inc. rose 4.9%, helping lead technology shares to the biggest gain in the S&P 500, after its founder expressed interest in taking the company private.
  • Freeport-McMoRan Copper & Gold Inc. sank after warning that China's plans to curb growth would hurt demand for copper.
  • The S&P 500 has slumped 9.4% from its year's high on April 23, due to concerns about the sovereign-debt crisis in Europe and slowing growth in China.
  • The Dow's 7.9% drop in May was the most since 1940, while the S&P 500 lost 8.2% in May, its worst month since February 2009.
  • The jobs report is expected to show a gain of 536,000 in payrolls, according to the median forecast in a Bloomberg survey.

Statistics:

  • The S&P 500 Index increased 0.4% to 1,102.83 at 4 p.m. in New York.
  • Technically stocks, led by Dell Inc., rose 4.9 percent, helping lead technology shares to the biggest gain in the S&P 500.
  • The number of Americans seeking jobless benefits last week fell by 10,000 to 453,000.
  • Payrolls climbed by 536,000 in May, the fifth straight month of gains and the biggest increase since 1983, according to the median forecast in a Bloomberg survey.
  • Goldman Sachs Group Inc. raised its estimate for payroll growth to 600,000 from 500,000.

Sources:

  • Euclid Infotech Pvt. Ltd.
  • Bloomberg
  • The Institute for Supply Management's non-manufacturing index
  • ADP Employer Services
  • The Labor Department
  • Goldman Sachs Group Inc.
  • Security Global Investors
  • Hays Advisory Group
  • Syndigate.info
  • Albawaba.com