USA stocks rise on strong jobs figures

Bruno Cirelli
Agosto 5, 2017

The Dow Jones Industrial Average headed for its ninth straight record high close on Friday, with strong gains in JPMorgan Chase and other banks after data showed us employers hired more workers than expected in July. The unemployment rate was little changed at 4.3 percent.

Because last July's job growth was the second strongest of the year, the 12-month average of job creation actually dropped a bit, which puts this month' s report very nicely into perspective. This still indicates that the expansion is on.

Perceived chances of an interest rate hike by the U.S. central bank by the end of the year increased to 50 percent from 46 percent after the release of the data, according to CME Group Inc's FedWatch tool.

"All the key data were stronger than expected, but none were really all that strong", said Chris Low, chief economist of FTN Financial.

IG analyst Joshua Mahony said: "Today's U.S. jobs report represents a key determinant of Fed policy for the fourth quarter, with markets expecting to see rates raised one more time this year".

The Dow Jones Industrial Average rose 66.71 points (0.30 per cent) to close at 22,092.81.

S&P 500 futures also added 0.2%, while Nasdaq 100 futures held just below that level, with Viacom (VIAB) and Cognizant Technology (CTSH) weighing on its early trade. The Nasdaq Composite added 10.90 points, or 0.17 percent, to 6,351.24.

The utilities, healthcare and consumer staples indices fell.

The Dow has risen over 11 percent and recorded three 1,000-points milestones from the beginning of 2017.

Walt Disney Co fell 1.31 percent and was the biggest drag on the Dow.

Winners and Losers: Shares of Yelp Inc skyrocketed 28 percent after announcing strong results in the second quarter and news of a deal to sell its Eat24 delivery service to Grubhub.

About 6.0 billion shares changed hands in United States exchanges on Friday, just below the 6.1 billion average over the past 20 sessions.

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