The S&P 500 came within a hair’s breadth of an all-time high Friday after the best jobs report in 7 months.
The US economy added 287,000 jobs in the month of June, well above the 180,000 expected by economists. On the back of this strong economic result, all the major indexes leapt higher to end the week.
We’ve got what you need to know from Friday, but first, the scoreboard:
- Dow: 18,142.08, +246.20, (+1.38%)
- S&P 500: 2,129.61, +31.71, (+1.51%)
- Nasdaq: 4,956.76, +79.75, (1.64%)
- WTI crude oil: $45.18, $0.05, (+0.11%)
- 10-year Treasury yield: 1.3660%, (-1.51%)
- FTSE 250: 16,177.75, +278.94, (1.75%)
- The jobs report gave a great signal about the strength of the labour market. The unemployment rate ticked slightly hire, but mostly due to a strong addition to the labour force participation rate. On the negative side, however, the dismal May jobs report was actually revised down from 38,000 to 11,000. “I don’t think this suggests we’re off to the races again, but I think this reinforces this mature trend in jobs growth which is still relatively healthy, but also an economy that’s doing relatively well and is not heading into recession-type conditions,” Liz Ann Sonders, chief investment strategist at Charles Schwab, told Business Insider after the report.
- Americans are getting paid more. In addition to the big headline beat, average hourly earnings grew at the fastest pace since the end of the recession with a 2.6% year-over-year uptick. Despite the jump, it still fell short of economists prediction of a 2.7% gain.
- Canada was not so lucky. In their own version of the employment report, the Canadian economy lost 700 jobs in the month of June, well below the 5,000 job increase expected by economists. June rounded out the second quarter making the total number of jobs added in the last three months just 11,000, the worst for a quarter in two years.
- The US added more oil rigs for the second week in a row. The Baker-Hughes oil rig count jumped by 10 to 315, while combined oil and gas rigs were up 9 to a total of 440. This brings the oil rig count up to levels from April 15.
- Juno Therapeutics stock crashed after two participants in its cancer treatment trial died. The biotech company reported late Thursday that the Food and Drug Administration was suspending trials of its cancer treatment drug JCAR015 after two people in the test died last week. In response to the move, shares of the company’s stock fell by 31%. Juno said it expected to re-tool the treatment and seek approval in 2018.
- The bond market just set a 60-year record low. According to Lotfi Karoui at Goldman Sachs, the Moody’s Baa corporate bond index, which measures the average yield of mid-grade corporate bonds, hit its lowest yield since August 1956.
- Theranos CEO Elizabeth Holmes was banned from operating a medical lab for two years. According to a report from the Wall Street Journal the Centres for Medicare and Medicaid services barred founder Holmes from operating a lab and pulled its California lab’s regulatory approval. This comes after eight months of scandals over the company’s ability to perform its supposedly revolutionary blood tests.