From Briefing.com: 1:15 pm : The stock market finished the abbreviated trading week on an upbeat note thanks to a boost from a June jobs report that surpassed expectations. The S&P 500 advanced 0.6% with nine sectors posting gains. As a result, the benchmark index extended its weekly gain to 1.3%.
Today's upbeat tone was set early with the June Nonfarm Payrolls report pointing to the addition of 288,000 jobs (Briefing.com consensus 210,000). In addition, the unemployment rate unexpectedly dropped to 6.1%.
Appropriately, the strong report gave a boost to cyclical sectors, while their countercyclical counterparts struggled a bit in the early going.
Consumer discretionary (+0.8%), financials (+0.8%), and industrials (+0.8%) paced the advance throughout the session and ended ahead of the remaining sectors. The discretionary space owed its outperformance to retailers as the group rallied broadly with the SPDR S&P Retail ETF (XRT 88.65, +1.15) climbing 1.3%. Homebuilders also posted gains, but the iShares Dow Jones US Home Construction ETF (ITB 24.94, +0.10), which added 0.4%, could not keep pace with the sector.
Elsewhere, industrials received support from transport stocks. All 30 components of the Dow Jones Transportation Average (+0.8%) finished in the green with airlines posting solid gains to follow yesterday's relative weakness. United Continental (UAL 39.88, +0.61) led the pack, climbing 1.6%.
Also of note, the financial sector padded its weekly advance to 1.3%.
On the countercyclical side, health care (+0.4%) and telecom services (+0.3%) displayed intraday losses, but returned into the green ahead of the close. The consumer staples sector (+0.6%), however, outperformed due to strength in tobacco names. Lorillard (LO 64.41, +3.26) jumped 5.3% in reaction to reports the company's merger with Reynolds American (RAI 61.56, +1.40) is on track to be announced within weeks.
Lastly, the utilities sector (-1.1%) displayed relative weakness for the third day in a row, ending the week lower by 3.2% as profit-taking continued.
Treasuries slumped in reaction to today's data, but spent the remainder of the session in a climb. The benchmark 10-yr yield inched up two basis points to 2.65%.
Economic data included June Nonfarm Payrolls, weekly initial claims, June Challenger Job Cuts, May Trade Balance, and the ISM Services report for June:
Nonfarm payrolls added 288,000 jobs in June after adding an upwardly revised 224,000 (from 217,000). The Briefing.com consensus expected nonfarm payrolls to increase by 210,000
Private payrolls were up 262,000 jobs in June after adding 224,000 jobs in May. That outpaced the consensus expectations of a 213,000 increase
The unemployment rate fell to 6.1% from 6.3%, while the consensus expected no change from 6.3%
The decline resulted from workers finding jobs (+407,000) rather than a drop in the labor force
Average hourly earnings increased 0.2% and hourly workweek was unchanged at 34.5 hours, as expected
The weekly initial claims level increased to 315,000 from an upwardly revised 313,000 (from 312,000). The Briefing.com consensus expected the initial claims level to increase to 315,000
Over the past few weeks, the initial claims level has settled into a range of 310,000 to 320,000 and this week's claims were no different
The Challenger Job Cuts report for June pointed to a 20.0% year-over-year decline
The U.S. trade deficit narrowed in May to $44.40 billion from a downwardly revised $47.00 billion (from $47.20 billion) in April. The Briefing.com consensus expected the trade deficit to fall to $45.2 bln
Total goods deficit fell to $63.30 billion in May from $65.70 billion in April. The services surplus increased to $18.90 billion from $18.60 billion
The ISM Non-Manufacturing Index fell to 56.0 in June from 56.3 in May. The Briefing.com consensus expected the index to increase to 56.5
Business activities softened as the related index declined to 57.5 in June from 62.1 in May as non-manufacturing businesses worked down their backlogs
The Backlog of Orders Index fell to 53.0 from 54.0
There is no economic data on Monday's schedule.
S&P 500 +7.4% YTD
Nasdaq Composite +7.4% YTD
Dow Jones Industrial Average +3.0% YTD
Russell 2000 +3.7% YTD
Week in Review: Stocks Rally into Q3
The stock market finished the second quarter on a subdued note with the major averages ending near their flat lines. The Nasdaq Composite (+0.2%) outperformed throughout the session, while the S&P 500 (-0.04%) surrendered its slim gain into the close. For the quarter, the S&P 500 jumped 4.7%, while the Nasdaq advanced 5.0%. Equity indices displayed losses at the start, but the Nasdaq and S&P 500 returned into the green after a better than expected Pending Home Sales report for June (6.1% versus 1.5% Briefing.com consensus) crossed the wires. Despite the early rebound, the S&P 500 ran into resistance in the 1964 area, which served as the high point for the day. Unlike the Nasdaq and S&P 500, the Dow Jones Industrial Average (-0.2%) could not make a sustained move into the green.
Equities kicked off July and Q3 on a strong note with small caps pacing the rally. The Nasdaq Composite and Russell 2000 jumped 1.1% and 1.0%, respectively, while the S&P 500 advanced 0.7% with nine sectors ending in the green. Stocks displayed early strength after economic data reported overnight and in the early morning indicated expanding manufacturing activity in China, Japan, the eurozone, and the U.S. Although some of the PMI readings missed estimates, they were all above 50, a level that represents the border between expansion and contraction. The data fostered the bullish tone, which was amplified by the arrival of new money at the start of the quarter. In large part, the advance was powered by four of the most influential sectors. Consumer discretionary (+1.1%), health care (+1.3%), financials (+0.6%), and technology (+1.1%) all jumped to the top of the leaderboard at the open and held their ground throughout the session.
The market spent the Wednesday session in a narrow range, which resulted in the S&P 500 posting a slim gain of less than two points (+0.1%) with six sectors ending in the green. The Dow Jones Industrial Average (+0.1%) outperformed slightly, while the Russell 2000 (-0.4%) lagged. The major averages climbed out of the gate, but the early strength was short-lived as only a handful of sectors were able to distance themselves from their flat lines. The lack of concerted sector leadership caused the key indices to return to their flat lines, where they remained into the close. One sector that displayed notable strength throughout the session was the leader from Tuesday-health care. The countercyclical group added 0.7% with biotechnology underpinning the advance. The iShares Nasdaq Biotechnology ETF (IBB) tacked on 0.5%.
12:09 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).
Large Cap Gainers
LO (64.74 +5.87%): Multiple sources reporting that co is nearing a deal to merge with Reynolds American (RAI)PCAR (67.42 +5.71%): Traded higher on speculative M&A commentary from Diamler's commerical-vehicle chiefRYAAY (55.5 +2.61%): Co announced three new routes between Edinburgh and London, Glasgow and London and Glasgow and Dublin, as well as a new base at Glasgow International
Large Cap Losers PEG (38.24 -2.32%): Weakness in large cap utilities companies: ETR, D, DUK, NU, SRE, EIX also lowerTSN (38.4 -1.44%): Hillshire Brands (HSH) disclosed that merger agreement with Tyson includes a termination fee of ~$261.3 mlnGG (27.62 -1.04%): Weakness in large cap gold companies: NEM also lower
Mid Cap Gainers PETM (67.3 +12.52%): JANA Partners disclosed 9.9% active stake; JANA intends to have discussions with the Board of Directors and management regarding a potential sale
RAD (7.51 +4.71%): Reported June same store sales rose 3.9% vs +2.6% estimate
CREE (52.66 +4.67%): Upgraded to Outperform from Perform at Oppenheimer, target $59; discussed positively in Digitimes article
Mid Cap Losers
SNX (69.42 -6.10%): Beat quarterly EPS by $0.15 ($1.52 ex items vs $1.37 estimate and $1.34-1.38 guidance), revs rose 33.3% yoy to $3.45 bln vs $3.17 bln estimate and $3.1-3.2 bln guidance; sees Q3 EPS of $1.45-1.50 ex items vs $1.53 estimate, revs of $3.3-3.4 bln vs $3.29 bln estimate
MBI (10.34 -4.08%): Weakness related to Puerto Rico on going cash concerns; WSJ reporting that some utility companies may need to restructure debtRSPP (29.95 -2.66%): Downgraded to Neutral from Buy at UBS
11:47 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (229) outpacing new lows (10) (:SCANX) : Stocks that traded to 52 week highs: ABBV, ABG, ABT, ADM, AET, AKS, ALSN, AMH, AMP, AN, AOSL, AP, ARDX, ARKR, ARW, ASBC, ASX, ATHL, ATI, ATVI, AUO, AVGO, AWH, AZC, BBL, BFR, BHB, BIG, BLX, BMA, BMO, BNS, BWS, CAR, CAT, CBB, CDW, CELG, CENX, CFN, CFNL, CGNX, CHE, CHRW, CHTR, CI, CLMS, CM, CNC, COF, CORR, CRAI, CRESY, CSL, CSX, CVGI, CVTI, CZWI, DAN, DDS, DFS, DIS, DVA, E, ECF, ECOL, EDAP, EEFT, ENL, ENPH, ENSG, ENTG, EQIX, ESC, ESGR, ESTE, EXPE, FCX, FDEF, FDS, FDX, FL, FOLD, FSTR, FWRD, GBX, GCI, GGAL, GIL, GILD, GLNG, GMCR, GPI, GRMN, GSAT, H, HDB, HES, HF, HH, HIG, HNRG, HOT, HSH, HT, HTBK, HUM, HZO, IFF, IMO, INTC, IRT, IRWD, ISLE, IVZ, JW.A, KANG, KAR, KLAC, KRFT, LAD, LCI, LGIH, LNC, LO, LPL, LQ, LRCX, LVNTA, LXK, MAR, MCRL, MCS, MERC, MET, METR, MFC, MGA, MGLN, MITSY, MLR, MMM, MNDO, MOH, MSA, MSCI, MSL, MTRN, MTW, MW, NBR, NJ, NLSN, NOV, NS, NSH, PAG, PAM, PDS, PFG, PJC, PKE, PLT, PPC, PRTS, PSEM, PTEN, PTLA, PUK, QCOR, RHI, RY, SAH, SCCO, SCI, SCOR, SEM, SIM, SIMO, SIRO, SJR, SKBI, SKM, SLF, SNBC, SNDK, SPB, SPIL, SPW, ST, STEM, SYNA, TAM, TAT, TD, TEO, TEP, TEVA, THRD, TIF, TKR, TROW, TRP, TRW, TSM, TSYS, TTM, TV, TWC, TWX, UMC, URI, VAL, VC, VLP, WAB, WBKC, WDC, WFC, WLB, WLK, WLP, WNC, WY, XBKS, XRS, YUM, ZAGG, ZBRA
Stocks that traded to 52 week lows: CERU, CHLN, MELA, MGT, NEWL, NQ, OIBR, PLX, PT, TCCO
ETFs that traded to 52 week highs: COW, DIA, EEM, EPU, EWC, EWT, IHF, IHI, IYF, IYH, IYM, IYZ, OEF, PALL, QAI, QQQ, SMH, SOXX, SPY, UYG, UYM, VTI, VWO, XLB, XLF, XLK, XLV, XLY
ETFs that traded to 52 week lows: FXS, SMN, VXX, VXZ
AI
Market Data 
Markets 
