Stocks poised to end week higher on jobs, oil
Stocks rose on Friday, with all three major Wall Street indexes poised to end the week higher, after rising oil prices lifted energy shares and a stronger-than-expected jobs report indicated strength in the economy.
Growth-dependent technology and industrial shares were among the best performing sectors after non-farm payrolls data for June came in above analysts' expectations and the previous month's figure was revised higher.
The jobs data supports the Fed's view that growth is improving. If there's anything to fear, it is that the moderation in inflation will prove temporary because the labor market is tightening, said Charles Lieberman, chief investment officer of Advisors Capital Management, LLC in Paramus, New Jersey.
In the near term, there is very little prospect of a policy change, so there's little standing in the way of the stock market, he added.
The Dow Jones industrial average was up 41.37 points, or 0.30 percent, at 13,607.21. The Standard & Poor's 500 Index was up 3.83 points, or 0.25 percent, at 1,529.23. The Nasdaq Composite Index was up 7.57 points, or 0.28 percent, at 2,664.22.
Shares of major oil companies rose as New York oil prices hit 10-month highs near $73 a barrel on Friday amid supply worries and turmoil in OPEC producer Nigeria.
The energy sector was the biggest advancer out of all 10 S&P 500 sectors, with the oil index up 1.15 percent.
Exxon Mobil Corp. shares were up 1.5 percent at $86.45, making it the top-weighted positive on the S&P 500. The third-biggest influence on the index was shares of Chevron Corp. up 1.4 percent to $87.78.
Heavy equipment maker Caterpillar Inc. rose 2 percent to $79.04, making it the biggest positive influence on the Dow.
Retail shares rose following the jobs report, with the S&P retail index up 1.8 percent, notching its biggest advance in more than three months.
Among the biggest gainers in the retail sector were shares of Target Corp. Speculation that the No. 2 discount chain may be looking to sell its credit card business sent shares of Target up 4.7 percent to $67.23.
Macy's Inc. shares were also trading sharply higher amid renewed talk that the department store chain may be the target of a buyout.
Macy's stock was up 5.7 percent to $42.03 on the NYSE.
Shares of Cognizant Technology Solutions Corp. were up after the information technology outsourcer was named to BusinessWeek's InfoTech 100, the magazine's annual ranking of the top technology performers.
Cognizant stock climbed 5.3 percent to $78.35 on the Nasdaq.
Shares of online auctioneer eBay Inc. rose 4.1 percent to $33.59.
U.S. employers added a higher-than-expected 132,000 non-farm jobs in June, while hiring figures for April and May were also revised significantly upward, according to a Labor Department report on Friday. The report pushed Treasury debt yields up as it reduced expectations of a cut in benchmark interest rates from the Federal Reserve any time soon.
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