Wall Street ended a volatile and unusual week on a bullish note yesterday, with the Dow Jones industrials gaining more than 146 points on...
NEW YORK — Wall Street ended a volatile and unusual week on a bullish note yesterday, with the Dow Jones industrials gaining more than 146 points on the strength of a positive job-creation report and a sharp drop in oil prices.
As European markets surged higher one day after the deadly terrorist bombings in London, the employment news of 146,000 new jobs in June was enough to encourage Wall Street’s two main camps. Those who fear inflation were happy with only a modest rise in job growth and wages, while those worried about a severe slowdown in the economy could point to another sign of steady, if slower, growth.
The move higher capped a remarkable week on Wall Street, which saw fear of rising oil priced replaced by a surprising resolve in the wake of the terrorist attacks in London.
“I think the shock of $60 oil has worn off and the market is focusing on the jobs report,” said Russ Koesterich, senior portfolio manager at Barclays Global Investments in San Francisco. “It’s also encouraging that you’ve had resiliency in the face of both terrorism and oil prices.”
Most Read Stories
- The results are in: Here's where the new Dick's Drive-In will be
- Prosecutor reviewing sex-abuse allegations against ‘Deadliest Catch’ star Sig Hansen
- Elon Musk’s SpaceX on brink of `Wright Brothers moment’ with reused rocket
- Richard Branson celebrates Virgin Atlantic’s entry to Seattle market, tears into Alaska Air
- Best way to slow aging? Exercise, but not just any kind
The Dow rose 146.85, or 1.43 percent, to 10,449.14.
Broader stock indicators also moved sharply higher. The Nasdaq composite index climbed 37.22, or 1.79 percent, to 2,112.88, its highest level since Jan. 3. The Standard & Poor’s 500 index was up 13.99, or 1.17 percent, at 1,211.86.
The bond market dropped sharply as stocks rose. The yield on the 10-year Treasury rose to 4.11 percent from 4.06 percent late Thursday. The dollar made gains against other major currencies, while gold prices fell after climbing in the wake of the terror attacks.
Oil prices moved lower in afternoon trading after rising past $61 per barrel as Hurricane Dennis threatened oil rigs and refineries in Florida and the Gulf of Mexico. A barrel of light crude settled at $59.63, down $1.10, on the New York Mercantile Exchange.
Worries over oil dominated stock trading in the first part of the holiday-shortened week, with oil prices setting new record highs. But while Wall Street initially sank Thursday after the London bombings, the markets were in positive territory by session’s end — defying conventional wisdom.
Analysts were encouraged by the market’s performance over the last two sessions, which helped push the major indexes into positive territory for the week. The Dow gained 1.41 percent for the week, while the S&P was up 1.46 percent and the Nasdaq surged 2.7 percent.
“I think, all told, you’re seeing the markets welcome rationality,” said Joseph Battipaglia, chief investment officer at Ryan Beck & Co. “The markets behaved very rationally after the London attacks, and even with oil rising because of hurricane season, the markets are accepting that as just a fact of life. With a backdrop of good economic news here, stocks look attractive.”
The Dow Jones industrials ended the week up 145.70, or 1.41 percent, finishing at 10,449.14. The S&P 500 index gained 17.42, or 1.46 percent, to close at 1,211.86.
The Nasdaq rose 55.51, or 2.7 percent, during the week, closing yesterday at 2,112.88.