Stocks wrap up winning week as payroll data sparks gains


Stocks closed at record highs after the May jobs report showed slow but steady improvement in the labor market.

In addition to a slight gain in average hourly earnings, positive aspects of the jobs report included large gains in business services and health care, meaning "we're starting to create good quality jobs," says TDĀ Ameritrade's JJ Kinahan.

Positive sentiment also lingered from yesterday's ECB policy moves, showing strong support for the global economic recovery.

Small companies' shares continue to recover from an April slide, as the Russell 2000 jumped 1% and rose 2.7% for the week in its best showing in four months; on the S&P, industrial and energy shares - seen as more sensitive to economic growth - led gains across seven of the index's 10 sectors.

Participation remained well below average, with 629M shares changing hands at the NYSE floor.

Treasurys showed some intraday volatility, but finished little changed; the 10-year note slipped 3 ticks with its yield rising 1 basis point to 2.59% after falling as low as 2.53%.

Comments (4)
  • wyostocks
    , contributor
    Comments (9102) | Send Message
     
    OK, I get it.
    But, this whole market is driven by the Fed. The Fed balance sheet continues to expand. Is there any level at which the Fed BS is too big? Or, does the BS expand forever to gadzillions of dollars and there will never ever be any consequence?

     

    Seems to me that Ponzi is laughing his butt off.
    6 Jun 2014, 04:34 PM Reply Like
  • june1234
    , contributor
    Comments (3818) | Send Message
     
    Basic supply and demand. An ever shrinking amount of shares chased by an ever increasing amount of (borrowed) cash. Higher and higher div yields aren't hurting either. Till rates rise too much don't see anything changing. Market is on steroids. VIX $10.73, charts don't even go back far enough to find it lower
    7 Jun 2014, 09:29 AM Reply Like
  • John Georgiou
    , contributor
    Comments (234) | Send Message
     
    FED , is ridding weel the money supply and we see it from inflation expectations!
    I think bull market will go on but stock market will give losses to risky traders.
    Some suggestions for next to http://bit.ly/TOSvxj
    7 Jun 2014, 12:45 PM Reply Like
  • EK1949
    , contributor
    Comments (2075) | Send Message
     
    "Or, does the BS expand forever to gadzillions of dollars and there will never ever be any consequence?"

     

    It could, because there won't be any significant consequence, or any persuasive reason why there should be. I don't think QE will last much longer, though, because it doesn't do much.

     

    "But, this whole market is driven by the Fed."

     

    ZIRP give you the most expansion monetary policy can give you, after that you go elsewhere. With ZIRP this whole market can go up as much as it wants undeterred by higher rates. I wouldn't call that driven, more like the Fed hasn't slashed the tires or put sugar in the tank. But then I never understood why they should do that, so I didn't expect them to.
    8 Jun 2014, 02:37 PM Reply Like
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