Optimistic Jobs Report Boosts Stocks and Commodities

From: Wealth Wire

Posted by Brittany Stepniak - Thursday, July 7th, 2011

The S&P 500 and commodities are gaining on a better-than-expected jobs report.

Standard & Poor's broad U.S. index nearly reached a two-month high. Commodities also gained today in accordance with jobs data and higher retail sales.

Target Corp. (TGT), Gap (GPS), and Limited Brands Inc. were three of the top retail-gainers, raking in gains of at least 3.2 percent after last month's sales.

At 10:56 a.m in New York, the S&P 500 stepped up to 1,351.19, inching up by 0.9 percent, stretching beyond its highest closing level since May 10.

S&P 500 Index

The Dow Jones industrial average (INDU) jumped 0.8 percent, acquiring 96 points.

This is weclome news for investors, after the index plummeted as much as 7.2 percent from May through mid June, due to dismal job, housing, and other economic data.

Oil, and 23 other commodities on the S&P GSCI index saw gains today as well. On a grand scale, those commodities spiked up 2.5 percent. Oil went up to nearly $99 per barrel.

According to Bloomberg:

Eight of the 10 main industry groups in the S&P 500 advanced after companies in the U.S. added 157,000 workers to their payrolls in June, according to figures from ADP Employer Services, bolstering confidence in the labor market before tomorrow’s government employment report. The S&P 500 Retailing Index (S5RETL) climbed 2.1 percent to a record in data going back to 1989 as lower gasoline prices helped June sales.

On account of this data, many people are beginning to let go of some of their recession fears. The increasingly positive payroll reports are helping to restore confidence among the general public and investors alike.

John Herrmann, senior-fixed income strategist at State Street Global Markets, reports on the unexpected jobs data for June and speculates on the future of our economy in this clip:

Brittany Stepniak