20900 Jobs Added, Dow Opens at Record High

U.S. stocks opened higher on Friday, with the Dow hitting a record high, after data showed U.S. employers hired more workers than expected in July, signaling labor market tightness.

The Labor Department reported showed that nonfarm payrolls increased by 209,000 jobs last month, above the 183,000 rise expected by economists polled by Reuters.

June’s employment gain number was revised up to 231,000 from the previously reported 222,000.

Average hourly earnings rose 0.3 percent after gaining 0.2 percent in June, while the unemployment rate fell to 4.3 percent.

The strong jobs report is likely to clear the way for the Federal Reserve to announce a plan to start shrinking its $4.5 trillion bond portfolio in September, and could strengthen its case to raise rates for the third time this year in December.

Chances of a rate hike by the end of the year increased to 50 percent from 46 percent after the release of the data, according to CME Group’s FedWatch tool.

“Not only did the July number beat, there was a net revision higher of previous months. Wages seem stuck growing at 2.5 percent year over year, but at least they’re not wavering,” said Brian Jacobsen, senior investment strategist at Wells Fargo Funds Management.

“Combine this decent employment report with a weaker dollar and the Fed has no reason to deviate from its plan to shrink its balance sheet and hike one more time this year.”

At 9:36 a.m. ET (1336 GMT), the Dow Jones Industrial Average <.DJI> was up 36.01 points, or 0.16 percent, at 22,062.11 and the S&P 500 <.SPX> was up 4.55 points, or 0.18 percent, at 2,476.71.

The Nasdaq Composite <.IXIC> was up 6.61 points, or 0.1 percent, at 6,346.95.

Ten of the 11 major S&P sectors were higher, with the financial index’s <.SPSY> 0.65 percent rise leading the advancers.

The S&P 500 has risen 11 percent in 2017 despite doubts in President Donald Trump’s ability to fulfill his promises of cutting taxes and increasing infrastructure spending.

A strong earnings season has helped allay concerns about stretched valuation, with the S&P 5trading at a pricey 18 times expected earnings, compared with its 10-year average of 14.

Analysts expect earnings of S&P 500 companies to have risen 11.8 percent, while projecting a 9.2 percent rise in earnings for the September quarter, according to Thomson Reuters I/B/E/S.

Shares of Viacom <VIAB.O> fell 9.61 percent after the company forecast a low single-digit dip in sales to U.S. pay-TV companies and streaming video services this quarter.

Yelp <YELP.N> jumped 21.74 percent after the company said it would sell its Eat24 business to Grubhub <GRUB.N> for $287.5 million and reported a better-than-expected quarterly revenue. Grubhub was up 1.78 percent.

GoPro <GPRO.O> rose 13.08 percent, while Weight Watchers <WTW.N> was up 21.28 percent after well-received quarterly earning reports.

Advancing issues outnumbered decliners on the NYSE by 1,619 to 797. On the Nasdaq, 1,269 issues rose and 907 fell.

Reuters

 
 
 
 
 

North Korean Hackers Behind Attacks On Cryptocurrency Exchanges, South Korean Newspaper Reports

North Korean Hackers Behind Attacks On Cryptocurrency Exchanges, South Korean Newspaper Reports
South Korea's spy agency said North Korean hackers were behind attacks on cryptocurrency exchanges this year in which some 7.6 billion ...
READ MORE >
 

Poll: More Than Half of Britons Now Want to Stay in EU

Poll: More Than Half of Britons Now Want to Stay in EU
EDINBURGH–A poll has found that 51 percent of Britons would now keep European Union membership while 41 percent ...
READ MORE >
 

Australia Arrests Man Accused of Trying to Sell Missile Parts for North Korea

Australia Arrests Man Accused of Trying to Sell Missile Parts for North Korea
MELBOURNE–Australian police said on Sunday they had arrested a man accused of working on the black market to ...
READ MORE >
 
US

Trump Administration Cuts Red Tape

Trump Administration Cuts Red Tape
President Donald Trump is pushing hard on deregulation. He disclosed his administration’s achievements in reducing red tape and federal regulations ...
READ MORE >
 

Rescuing turtles from ghost net

Rescuing turtles from ghost net
Sea turtles have become entangled in ghost nets floating in the ocean. These creatures are particularly vulnerable to becoming ...
READ MORE >