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Stocks are flying after the jobs report

Aug 5, 2016, 19:17 IST

Investing.com
Investing.com

Stocks are rallying after the July jobs report came in much better than expected.

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At 9:41 a.m. ET, the Dow is up 137 points (0.75%), the S&P 500 is up 12 points (0.56%), and the Nasdaq is up 36 points (0.70%).

The economy added 217,000 nonfarm payrolls last month, beating the forecast for 170,000.

The gain in June was revised up by 5,000 to 292,000. Wage growth also topped expectations, and year-on-year average hourly earnings are at a post-recession high of 2.6%.

Meanwhile, treasurys are selling off. The yield on the benchmark 10-year note is up three basis points to 1.535%. And the two-year yield, which moves inversely to its price and is sensitive to interest-rate expectations, is up five basis points to 0.698%.

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The likelihood of another rate hike from the Federal Reserve by the end of the year rose in the Fed funds futures market.

"From a Fed definition perspective, the labor market is kind of at full employment," said Tony Bedikian, managing director and head of global markets at Citizens Bank.

"It's very difficult to see many negatives here given that we got a pretty broad-based positive number today," he told Business Insider.

And so, the July jobs report marked a second straight month of strong job gains and should put away recent concerns about a hiring slowdown in the economy.

The dollar gained after the jobs report. Its index is up 0.6% to 96.35.

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In other news, Bristol-Myers shares tanked by as much as 16% after news that its blockbuster cancer drug failed a key clinical trial.

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