September 26, 2021

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Stocks surge to records as job growth picks up

U.S. equity markets rallied into the record books Friday as investors digested the better-than-expected June jobs report ahead of the holiday weekend. 

The Dow Jones Industrial Average climbed 154 points, or 0.45%, while the S&P 500 and the Nasdaq Composite rose 0.75% and 0.81%, respectively. All three indexes closed at all-time highs ahead of the extended 4th of July weekend.  

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 34786.35 +152.82 +0.44%
SP500 S&P 500 4352.34 +32.40 +0.75%
I:COMP NASDAQ COMPOSITE INDEX 14639.325014 +116.95 +0.81%

Nonfarm payrolls increased by 850,000 workers in June as the unemployment rate ticked up to 5.9%, the Labor Department said Friday. Analysts surveyed by Refintiv were expecting the addition of 700,000 and the unemployment rate to fall to 5.7%. May’s reading was revised higher by 24,000 jobs to 583,000. 

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In response to the jobs report, the yield on the 10-year bond note dipped to near 1.43%, its lowest level since early March. 

In stocks, mega-cap technology companies Microsoft Corp., Alphabet Inc. and Nvidia Corp. all hit record highs. 

Ticker Security Last Change Change %
MSFT MICROSOFT CORP. 277.65 +6.05 +2.23%
GOOGL ALPHABET, INC. 2,505.15 +56.26 +2.30%
NVDA NVIDIA CORP. 819.48 +11.00 +1.36%

Meanwhile, interest-rate-sensitive financial firms, including Bank of America Corp., JPMorgan Chase & Co. and Goldman Sachs Group Inc., underperformed as bond yields declined. 

Ticker Security Last Change Change %
JPM JPMORGAN CHASE & CO. 156.03 -0.15 -0.10%
GS THE GOLDMAN SACHS GROUP, INC. 374.16 -0.83 -0.22%

Elsewhere, Boeing Co. shares slipped after a cargo version of the 737 jet experienced engine trouble and made an emergency landing in the Pacific Ocean off the coast of Honolulu. 

Raytheon Co. was awarded a $2 billion nuclear missile contract from the Air Force. The weapon, which will be manufactured in Tucson, Arizona, is expected to be completed in 2027. 

Ticker Security Last Change Change %
BA THE BOEING CO. 236.68 -3.05 -1.27%
RTX RAYTHEON TECHNOLOGIES CORP. 86.7 +0.48 +0.56%
SPCE VIRGIN GALACTIC HOLDINGS INC. 44.94 +1.75 +4.05%

Virgin Galactic Holdings Inc. said founder Richard Branson will be a member of the July 11 test flight of its SpaceShipTwo Unity, putting him on track to beat outgoing Amazon CEO Jeff Bezos by nine days.

Krispy Kreme Inc. and Didi Global Inc. remained in focus following their recent initial public offerings. 

Krispy Kreme shares surrendered a good portion of their gains experienced during Thursday’s debut while Didi shares added to the 1.5% decline that occurred during the first two trading sessions after Chinese regulators announced an investigation into national data security risks. 

Ticker Security Last Change Change %
DNUT KRISPY KREME INC COM USD0.01 19.12 -1.88 -8.95%
DIDI DIDI GLOBAL INC 15.53 -0.87 -5.30%

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In commodities, West Texas Intermediate crude oil fell 7 cents to $75.16 a barrel and gold jumped $6.70 to $1,782.60 an ounce.

Overseas markets were mixed. 

European bourses ended little changed with Germany’s DAX 30 slipping 0.03%, France’s CAC 40 ticking down 0.01% and Britain’s FTSE 100 rising 0.3%. 

In Asia, Japan’s Nikkei 225 rallied 0.27%, while Hong Kong’s Hang Seng index and China’s Shanghai Composite declining 1.8% and 1.95%, respectively.