Newspaper article THE JOURNAL RECORD

Stocks Up as Bonds Recover Following Mixed Jobs Data

Newspaper article THE JOURNAL RECORD

Stocks Up as Bonds Recover Following Mixed Jobs Data

Article excerpt

NEW YORK (AP) _ Stocks rose Friday as bonds mounted a healthy recovery after a mixed labor report.

The Dow fell as much as 15 points early in the session, but then recovered as bonds mounted a strong comeback.

"Once the bond market began turning up, the stock market really shifted into high gear," said John Burnett, a trader at Donaldson, Lufkin Jenrette Securities.

The Dow Jones industrial average rose 13.23 points to 3,772.22.

Advancing issues outnumbered decliners by about 12 to 7 on the New York Stock Exchange, where volume totaled 270.38 million shares, down from 271.1 million shares on Thursday.

Broad-market indexes moved higher. The NYSE's composite index rose 1.26 to 254.34. The Nasdaq index rose 2.70 to 742.20. At the American Stock Exchange, the market value index rose 1.31 to 441.84.

Bonds fell nearly a point in the early going on the labor report, then rose a point on a strong dollar and hedge-fund buying. The 30-year bond recently traded up 13-16. Its yield, which moves in the opposite direction of its price, stood at 7.26 percent, down from 7.34 percent late Thursday.

The Labor Department reported that the nation's unemployment rate fell four-tenths of a percentage point in May, to 6 percent. Most analysts had expected the jobless rate to remain unchanged.

Wall Street is concerned that increased employment will fuel inflation and harm the value of fixed-income investments, and pull stock prices lower as well.

But the lower unemployment rate was tempered by a smaller-than-expected increase in additions to nonfarm payrolls. The Labor Department said new hires rose by 191,000, considerably less than the 275,000 to 300,000 most analysts had expected.

In other bits of news deemed inflationary, additions to April nonfarm payrolls were revised sharply upward, to 358,000 from 267,000, and average hourly earnings jumped 6 cents to $11. …

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