Stocks soared today as the monthly jobs report came in above expectations. The Dow Jones Industrial Average (^DJI 0.56%) finished up 207 points, or 1.4%, to close the week at 15,248.
The Labor Department reported that 175,000 jobs were added in May, better than consensus projections at 159,000. However, the jobs report was not stellar across the board as private-sector jobs only beat estimates by 3,000, and the unemployment rate ticked to 7.6% from 7.5% in April. The Labor Department also revised down its estimate of jobs created in April from 165,000 to 149,000. Given the negatives in the report, the market's reaction seems to be a bit exaggerated.
Boeing (BA -0.24%) was the biggest winner out of the blue chips, gaining 2.7%, as the aerospace maker was a part of a $4 billion deal announced today that includes Rolls-Royce and Singapore Airlines. According to the agreement, Rolls Royce will provide engines for 50 Boeing 787 jets. The aerospace giant shares have continued to move higher now that its Dreamliner battery fire problems have been resolved. Boeing hit a five-year high today, and shares are up 35% this year.
Missing out on the rising tide was AT&T (T 1.10%), which fell 1%. Ma Bell said that thus far this quarter its subscriber growth has improved from a year ago, and analysts expect the company to report additions of 500,000, up from 296,000 the previous year. However, the telecom has had to spend heavily in marketing to attain those new customers and therefore its margins have shrunk. In its most recent report, AT&T reported a decline in wireless subscribers, a concerning development for investors.
Fellow telecom Sprint (S) dipped 1.4% late in the day on news that Softbank, which had made an offer to purchase a 70% stake in Sprint, is now eyeing T-Mobile as a back-up plan if its deal with Sprint falls through. T-Mobile shares jumped 3% on the news, though Softbank was careful to say that the prospect was only a "Plan B."
