· Wall Street closes higher after biggest payrolls jump on record
Wall Street closed higher and the Nasdaq reached an all-time closing high on Thursday as investors headed into their long holiday weekend buoyed by a record surge in payrolls, which provided assurance that the U.S. economic recovery was well under way.
In the coming weeks, market participants will train their focus on second-quarter reporting season. In aggregate, analysts now expect S&P earnings to have dropped by 43.1% as companies grappled with plunging demand and disrupted supply chains.
The Dow Jones Industrial Average .DJI rose 92.39 points, or 0.36%, to 25,827.36, the S&P 500 .SPX gained 14.15 points, or 0.45%, to 3,130.01 and the Nasdaq Composite .IXIC added 53.00 points, or 0.52%, to 10,207.63.
All three major U.S. stock averages advanced, with the benchmark S&P 500 posting its fourth straight daily gain.
The CBOE Volatility index , a barometer of investor anxiety, logged its largest weekly point drop since the week ending May 8.
· Moderna stock falls by as much as 9.4% after report says late-stage coronavirus vaccine trial delayed
Moderna’s stock fell by as much as 9.4% in midday trading Thursday after a report said the biotech company’s late-stage trial for a potential coronavirus vaccine will be delayed, possibly by a few weeks.
The company, which is working with the National Institutes of Health, was expected to begin a phase 3 trial with 30,000 participants for its vaccine candidate later this month, pending the results from its midstage trial.
However, the company is making changes to the trial plan, which has pushed back the expected start date, according to health-care publication STAT News, citing an investigator. STAT News said it’s unclear how long the start date will be delayed.
· European markets close sharply higher on vaccine hopes, U.S. jobs surprise
European stocks closed sharply higher Thursday on positive news around a potential coronavirus vaccine and better-than-expected U.S. jobs data.
The pan-European Stoxx 600 provisionally closed about 1.9% higher, with banks jumping 4.5% to lead gains as all sectors and major bourses remained in positive territory.
· Asia Pacific stocks rise as U.S. jobs report beats expectations
Stocks in Asia Pacific rose in Friday morning trade after U.S. nonfarm payrolls released overnight beat expectations, raising optimism over the prospects of an economic recovery from the coronavirus pandemic.
In Japan, both the Nikkei 225 and Topix indexes rose 0.55% in early trade. South Korea’s Kospi also advanced 0.46%.
Over in Australia, the S&P/ASX 200 gained 0.33%.
Overall, the MSCI Asia ex-Japan index traded 0.13% higher.
Investors will watch for reaction to the overnight U.S. jobs print, where nonfarm payrolls surged by 4.8 million in June, according to the U.S. Labor Department. The figure smashed expectations by economists surveyed by Dow Jones of a 2.9 million increase in jobs created. The unemployment rate dropped to 11.1%, lower than the 12.4% forecast by economists surveyed by Dow Jones.
The Labor Department also said, however, that initial jobless claims rose by 1.427 million in the week ending June 27. Economists polled by Dow Jones expected initial U.S. jobless claims to rise by another 1.38 million.
Looking ahead, a private survey of China’s services sector activity for June is expected on Friday, with the Caixin/Markit services Purchasing Manager’s Index set to be released around 9:45 a.m. HK/SIN.
Reference: CNBC, Reuters
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