Dow Jumps 207 Points on Jobs Report

Just days after a reading of private-sector employment disappointed, causing markets to reel, today's figures from the Department of Labor boosted sentiment on Wall Street. Nonfarm payrolls rose 175,000 in May, up from gains of about 150,000 the month before. Investors seem to think the improvement mediocre enough to keep the Fed from tapering its stimulus and just good enough to not fear for the economy's health. Friday's jobs report was enough to send the Dow Jones Industrial Average (DJINDICES: ^DJI  ) 207 points, or 1.4%, higher, to close out the week at 15,248. 

Flying high atop the Dow was Boeing (NYSE: BA  ) , which added 2.7% today as the company continues to recover from its Dreamliner nightmare earlier this year. After serious safety concerns prompted international groundings of Dreamliner 787 models, the company has since fixed the engine issue and the models are back in the air. With Rolls-Royce signing on to provide the engines for 50 Boeing planes going to Singapore Air, shareholders cheered the emphasis on quality in new orders. 

Walt Disney (NYSE: DIS  ) shares were also highfliers on Friday, tacking on 2.7%. The House of Mouse hiked entrance fees at a number of its theme parks just days ago, and with Friday's jobs report showing continued strength in hiring, it looks like more Americans will be able to afford to spend money they should probably be saving.

Only four blue chips closed in the red on Friday. Both of the day's worst performers pay handsome dividends to investors. Merck (NYSE: MRK  ) , for instance, which lost 0.8% today, dishes out 3.7% a year to shareholders. There's nothing wrong with rewarding investors with healthy quarterly payouts, but on days as bullish as today was, the market can sometimes get fixated on the immediate lure of capital gains over the steady cash sought by the patient long-term income investor.

AT&T (NYSE: T  ) , which shells out a 5.1% annual dividend, shed 1% today. The revelation that dominated newswires yesterday -- that the U.S. government is secretly collecting phone and Internet usage data on millions of Americans -- may be sinking in for investors in the wireless provider. Though in fact rival Verizon was the company explicitly cited in The Guardian's expository report, the extremely secretive nature of the data collection may have some shareholders concerned about potential customer pushback should AT&T also turn out to be providing usage information.

Boeing operates as a major player in a multi-trillion-dollar market in which the opportunities and responsibilities are absolutely massive. However, emerging competitors and the company's execution problems have investors wondering whether Boeing will live up to its shareholder responsibilities. In our premium research report on the company, two of The Motley Fool's best minds on industrials have collaborated to provide investors with the key, must-know issues surrounding Boeing. They'll be updating the report as key news hits, so don't miss out — simply click here now to claim your copy today.


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  • Report this Comment On June 07, 2013, at 7:52 PM, Abe121 wrote:

    It is unlikely that the Federal Reserve policy of monetary easing is going to achieve significantly lower unemployment rate. It mostly likely would lead to devaluing the Dollar and to inflation. It has already inflated the price of stocks, and led to transfer of wealth from savers and the elderly to wealthier households. Also, it is building an equity bubble, and leaves the country ill prepared to deal with another slow down of the economy. The money the Federal Reserve is printing is equivalent to a debt issued against the American Public. That power should only be reserved to Congress and not a board of appointed bankers. I am sure that Federal Reserve has used up all the money deposited by banks as part of their reserve. If the MBS the Federal Reserve buys default then the extra money printed would stay in the economy, and the banking losses would be distributed on every American. Also, there is a good chance that when the Federal Reserve tries to unwind its balance sheet, then the same MBS bought would be sold to banks at a fraction of their value. Something that I would call a robbery of the American public!

  • Report this Comment On June 08, 2013, at 12:44 AM, ReneSantander wrote:

    Wall Street casino is in the middle of a party

    , using all the money the government provides to the corporations.

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