US stocks rose on Thursday after June employment data exceeded expectations and further fueled hopes for a short-term economic rally. The Nasdaq Composite Index, heavy on technology, closed at a record high.
The nation’s economy added 4.8 million nonfarm payrolls last month, the Bureau of Labor Statistics announced Thursday morning. That exceeded the consensus economist forecast, which predicted 3 million additional jobs.
The unemployment rate fell to 11.1%, lower than the economist’s forecast of 12.5%, and below 13.3% in May.
This is where the US indices settled at the close of the market at 4pm ET on Thursday:
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The statement reveals healthy recruiting activity taking place amid continued efforts to reopen. However, the report’s data does not cover the past few weeks when coronavirus case counts skyrocketed in several states. The resurgence of the virus has some experts who fear a second episode of economic pain.
“The high-frequency data suggests that the strength of the labor market began to decline at the end of the month, perhaps as households and businesses became increasingly cautious about increasing infection rates,” Seema Shah said , chief strategist at Principal Global Investors.
He added: “In fact, now, with reversed or paused closings in 40% of the United States, the July job report may paint a much weaker story.”
The indices trimmed gains in the morning and largely traded unchanged in the afternoon after the positive data.
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In separate labor market data, jobless claims fell to 1.43 million in the week ending June 27. That was a slight decrease of 1.48 million the previous week. Ongoing claims, which track ongoing unemployment benefits, reached 19.3 million for the week ending June 20.
Tesla’s shares soared to a record high after second-quarter deliveries topped estimates. The automaker delivered approximately 90,650 vehicles in the period. Analysts surveyed by FactSet expected 72,000 deliveries in the second quarter, according to CNBC.
Tech-driven insurance company Lemonade soared as much as 132% in its commercial debut Thursday. The Softbank-backed firm raised $ 319 million in the initial public offering, bringing its total valuation to $ 1.6 billion.
Boeing helped lift the Dow before reducing earnings later in the session. The shares recovered after the company completed the recertification flights for its troublesome 737 MAX model.
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Oil prices rose. West Texas Intermediate crude rose as much as 2.3% to $ 40.74 a barrel. International benchmark Brent crude gained 2.9%, at $ 43.23 per barrel, at intraday highs.
Thursday’s rebound follows a mixed equity session. Stocks soared Wednesday as investors reflected on the positive results of the Pfizer COVID-19 vaccine trials and the rise in case counts in the United States. The June ADP payroll data was lower than expected, leaving some to fear disappointment in Thursday’s employment reports.
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