Another Strong Month Of Hiring Sends Stock Indexes Higher

FILE - This July 16, 2013, file photo, shows a Wall Street street sign outside the New York Stock Exchange. U.S. stocks rise slightly, Friday, Aug. 4, 2017, after the government reports stronger-than-expected job growth for the month of July. (AP Photo/Mark Lennihan, File)

NEW YORK -- U.S. stocks are rising Friday following a jobs report that was better than most experts expected. Banks are rallying as bond yields and interest rise. Investors remained focused on corporate earnings. Weight Watchers climbed after reporting a strong quarter while Viacom, the media company that owns Comedy Central and MTV, sank.

KEEPING SCORE: The Standard & Poor's 500 index added 2 points, or 0.1 percent, to 2,474 as of 3:15 p.m. Eastern time. The Dow Jones industrial average rose 42 points, or 0.2 percent, to 22,068. It is on pace for its ninth gain in a row. The Nasdaq composite climbed 6 points, or 0.1 percent, to 6,346. The Russell 2000 index of smaller companies gained 6 points, or 0.5 percent, to 1,411.

JOB GAINS: July was the second consecutive month of strong hiring, suggesting that the U.S. economy is still growing steadily as countries in Europe and emerging-markets areas come out of long slumps.

"The economy is in pretty good shape," said Paul Zemsky, chief investment officer for the multi-asset business of Voya Investment Strategies. "We're seeing for the first time more of a globally synchronized growth."

He said that will lead to a stronger global economy and will help stocks if growth in the U.S. falters.

However, Americans' paychecks still aren't growing much. The Labor Department said average hourly pay rose 2.5 percent from a year ago, the same pace as June and slower than normal for a period with very low unemployment.

MARKET REACTION: Bond prices dropped and yields rose. The yield on the 10-year Treasury note climbed to 2.26 percent from 2.22 percent as investors concluded it is more likely the Federal Reserve will raise interest rates again later in the year.

Banks made big gains. Bank of America climbed 61 cents, or 2.5 percent, to $24.99. JPMorgan Chase rose $1.22, or 1.3 percent, to $93.72 and KeyCorp picked up 36 cents, or 2 percent, to $18.40. High-dividend stocks like utilities and phone companies traded lower.

GRUBHUB GETS TAKEOUT: Grubhub plans to buy another online food-ordering business and will pay $287.5 million for Yelp's Eat24 unit. The companies also announced a deal that will let people reading Yelp reviews order food from restaurants that use Grubhub. Yelp climbed $8.48, or 27 percent, to $39.85 while Grubhub added $4.68, or 9.7 percent, to $52.93.

WATCH THIS: Weight loss company Weight Watchers International raised its forecasts for the year after it reported a bigger profit and more revenue than analysts expected. The company said it had 20 percent more subscribers at the end of June than it did a year earlier. Its stock gained $7.77, or 23.5 percent, to $40.18. It's more than tripled in value this year.

Weight Watchers was worth under $7 a share nearly two years ago when Oprah Winfrey bought a 10-percent stake Weight Watchers and appeared in an ad for the company.

NO LAUGHING MATTER: Viacom, which owns Comedy Central and MTV, tumbled after the company reported trouble with a financing deal with a Chinese company. The company said it didn't receive a payment in June from Huahua Media, which agreed to help finance Paramount Pictures films as part of a three-year deal that was struck in January. The stock sank $4.11, or 11.7 percent, to $30.97.

Viacom also said it subscribers to its cable networks dipped in the third quarter, and in the current quarter it expects a decline in the fees it receives from cable companies who carry its networks.

Twenty-First Century Fox fell 37 cents, or 1.3 percent, to $28.46. Discovery Communications lost 82 cents, or 3.3 percent, to $23.92.

Consumers are streaming more shows and movies and look for ways to cut their bills, pressures that helped push Discovery to agree to buy rival Scripps Networks on Monday. The stocks have slumped since Time Warner reported a drop in ad revenue in May.

OIL: Benchmark U.S. crude rose 55 cents, or 1.1 percent, to $49.58 per barrel in New York. Brent crude, the international standard, added 41 cents to $52.42 a barrel in London.

Wholesale gasoline rose 1 cent to $1.65 a gallon. Heating oil gained 1 cent to $1.65 a gallon. Natural gas lost 3 cents to $2.77 per 1,000 cubic feet

CURRENCIES: The dollar rose to 110.67 yen from 110.06 yen. The euro fell to $1.1769 from $1.1866.

METALS: Gold fell $9.80 to $1,264.60 an ounce. Silver dropped 38 cents, or 2.3 percent, to $16.25 an ounce. Copper rose 1 cent to $2.89 a pound.

OVERSEAS: France's CAC 40 index climbed 1.4 percent and the DAX in Germany jumped 1.2 percent. The British FTSE 100 gained 0.5 percent. Japan's Nikkei 225 fell 0.4 percent while South Korea's Kospi added 0.4 percent. Hong Kong's Hang Seng index edged up 0.1 percent.

By MARLEY JAY - Aug 4, 3:33 PM EDTAP

---

AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/marley%20jay

 

0 Comments

You can be the first one to leave a comment.

Leave a Comment

 

News Sources

  • ABC
  • Access Hollywood
  • Associated Press
  • BBC
  • Bloomberg
  • Boston Globe
  • C-SPAN
  • CBS
  • Chicago Sun-Times
  • Christian Science Monitor
  • Center for Public Integrity
  • CNN
  • Congressional Quarterly
  • Democracy Now!
  • Digg
  • E! Online
  • Entertainment Weekly
  • Financial Times
  • Forbes
  • Foreign Policy
  • Fortune
  • Front Street Magazine

  • Administrator : Dascot
  • Administrator : Peter Starr
  • Editor: Ava Greenberg
  • Editor: Seth Walton
  • Contributor: Jerry Adler
  • News Sources

  • Fox News
  • Google News
  • Guardian
  • Huffington Post
  • Independent
  • LA Weekly
  • Los Angeles Times
  • McClatchy
  • Mother Jones
  • National Journal
  • NBC New
  • New York Post
  • New York Times
  • Newsweek
  • Newsy
  • NPR
  • PBS NewsHour
  • People
  • Politico
  • Reuters
  • TPM
  • Washington Post
  • Thanks For Your Support!

    Advertisement
     

    Copyright © 2017 Front Street. All Rights Reserved.