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Dow closes above 17,000 on strong payrolls report

  • The Dow burst through the 17,000 mark to a new record close, and the S&P also climbed to a new high, after the June payrolls report came in far above expectations.
  • While welcoming the strong employment data, investors also decided the report's subdued wage growth means the Fed won’t speed up its timetable for raising short-term interest rates.
  • The Dow's move above 17,000 comes just 153 trading sessions since first closing above 16K last Nov. 21, marking the seventh-fastest 1,000-point gain in history.
  • Growth-sensitive industrials and materials stocks led the market higher, while utilities, which pay bond-like dividends, sold off sharply.
  • Volume was light in the holiday-shortened session; the VIX fell 4.6% to 10.32, lower than any time in more than seven years.
  • Treasury prices slumped initially from the jobs data, but eased higher thereafter; the benchmark 10-year yield is up 2 bps to 2.65%.
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