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US stocks climb on strong June jobs report; banks rise

Canadian Press, The Canadian Press
0 Comments| July 8, 2016


NEW YORK - Stocks are rising Friday morning following a U.S. jobs report that was much stronger than investors expected. That was a relief for the market after a weak report in May made some investors worry the U.S. economy is slowing down.
 
KEEPING SCORE: The Dow Jones industrial average surged 169 points, or 1 per cent, to 18,065 as of 10:10 a.m. Eastern time. The Standard & Poor's 500 index rose 21 points, or 1 per cent, to 2,119. The Nasdaq composite advanced 52 points, or 1.1 per cent, to 4,928.
 
US JOBS RELIEF: Employers added 287,000 jobs in June, according to a Labor Department report. The unemployment rate rose slightly as more people looked for work, and there was evidence that wages were rising faster. That suggests the economy is recovering from a slump the last few months. April's somewhat disappointing hiring number was revised higher while May's weak figures were cut even further. The April and May reports worried investors in part because they came after the economy grew just 1.1 per cent in the first three months of 2016. The U.S. economy has been growing for more than six years and investors are wary that that streak could end.
 
GAP GAINS: Retailer Gap climbed after it said sales at older stores grew in June as Old Navy results improved. Sales at those stores are considered an important measure of retailers' results, and Thomson Reuters said it was the first improvement in that gauge for Gap in more than a year. Analysts expected another decline this month.
 
Gap stock rose $1.48, or 6.9 per cent, to $23.11. The stock is down 6 per cent this year.
 
POLYCOM GOES PRIVATE: Videoconferencing equipment maker Polycom said it will be taken private by Siris Capital. It accepted an offer from Siris worth $12.50 per share, or $1.7 billion. Polycom accepted an offer from Mitel Networks in April. Polycom stock gained $1.42, or 13 per cent, to $12.29. Mitel, which will get a $60 million payment from Polycom, climbed $1.14, or 18.9 per cent, to $7.16.
 
JUNO STUDY: Drug developer Juno Therapeutics said it halted a mid-stage study on a potential leukemia treatment following the deaths of two patients. The study involved the company's most advanced experimental drug, and Juno said the deaths of the patients came after an additional chemotherapy drug was added to their treatment. The stock sank $10.98, or 26.9 per cent, to $29.84.
 
IN THE BANK: Bank stocks made the largest gains. If reports show the economy is on surer footing, the Federal Reserve is more likely to raise interest rates later this year, and that would help banks make bigger profits on mortgages and other lending. Banks are the only S&P 500 industrial sector in the market that's still lower for the year. JPMorgan Chase picked up $1.54, or 2.5 per cent, to $62.12. Capital One rose $2.55, or 4.1 per cent, to $64.44 and Synchrony Financial added $1.13, or 4.3 per cent, to $27.15.
 
BARRACUDA GOES SWIMMING: Cloud-based security and storage service company Barracuda Networks reported solid quarterly results and raised its projections for the year. Its stock jumped $2.52, or 16.2 per cent, to $18.03.
 
OIL: Benchmark U.S. crude rose 54 cents, or 1.2 per cent, to $45.68 in New York. Brent crude, used to price international oils, gained 56 cents, or 1.1 per cent, to $46.96 a barrel in London.
 
LAGGARDS: Utilities and phone companies traded lower and household goods makers also lagged the market. Those stocks, considered some of the safest investments available, have outperformed the market as investors looked for protection. Phone and utility companies are the best-performing sectors of the market in 2016.
 
OVERSEAS: Germany's DAX rose 2.1 per cent and the CAC-40 in France was 1.6 per cent higher. The FTSE 100 index of leading British shares was up 0.7 per cent. Japan's Nikkei 225 closed 1.1 per cent down. Hong Kong's Hang Seng index shed 0.7 per cent and South Korea's KOSPI lost 0.6 per cent.
 
BONDS, CURRENCIES: Bond prices slipped and the yield on the 10-year Treasury note edged up to 1.40 per cent from 1.39 per cent. The yield on the 30-year Treasury bond remained at 2.14 per cent. The dollar dipped to 100.72 yen from 100.76 yen. The euro declined to $1.1048 from $1.1055. The British pound inched up to $1.2951 from $1.2896.
 
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AP Markets Writer Marley Jay can be reached at
http://twitter.com/MarleyJayAP . His work can be found at
http://bigstory.ap.org/journalist/marley-jay


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