Dow Tops 17,000 After Strong Jobs Report

Dow Jones Passes 17,000 For The First Time
Andrew Burton/Getty Images
By KEN SWEET

NEW YORK -- The Dow Jones industrial average (^DJI) topped 17,000 for the first time Thursday, the index's first big 1,000-point milestone this year, following news that hiring in the U.S. accelerated last month.

The market rose from the opening of trading after the government reported that U.S. employers hired more employees than investors and economists expected. Trading was extremely light, though, and trading ended early ahead of the Fourth of July holiday Friday.

Thursday's gains add to what has been a strong month-and-a-half for Wall Street. Along with the Dow hitting 17,000, the Standard & Poor's 500 index (^GPSC) is approaching its own milestone of 2,000. The indexes have risen as a steady stream of good news on jobs and manufacturing bolsters investor confidence.

"Right now the story is onward and upward," said Neil Massa, senior trading at John Hancock Asset Management.

The Dow rose 92.02 points, or 0.5 percent, to 17,068.26. The S&P 500 rose 10.82 points, or 0.6 percent, to 1,985.44 and the Nasdaq composite (^IXIC) rose 28.19 points, or 0.6 percent, to 4,485.93.

Investors cheered the latest jobs report from the Department of Labor, which said U.S. employers added 288,000 workers to their payrolls in June, far more than forecast. The unemployment rate fell to 6.1 percent. The government also said employers hired more people in previous months than reported earlier: 217,000 in May and 304,000 in April. The U.S. economy is now creating around 231,000 jobs each month in 2014, compared to roughly 194,000 a month last year.

"It topped even some of the most optimistic of forecasts," Massa said.

The jobs report is the latest piece of data to show the U.S. economy continuing to steadily improve. On Wednesday, the payroll processor ADP said private businesses added 281,000 jobs in June, up from 179,000 in May. Also this week the Institute for Supply Management said the U.S. manufacturing sector expanded for the 13th consecutive month.

While the Dow's passing of 17,000 is a notable milestone, most of Wall Street doesn't focus on it. The vast majority of mutual funds and investors use the broader S&P 500 index as their benchmark for how they are performing. In fact, the Dow has lagged behind the rest of the stock market this year. The index is up 3 percent in 2014 compared to the S&P 500's rise of 7.4 percent.

"That said, investors should be feeling good about Dow 17,000," Scott Wren, a senior equity strategist with Wells Fargo Advisors, wrote in a note to investors. "The stock market has more than recovered from levels seen during the financial crisis more than five years ago. Slow and steady can win the race; and it has."

Among individual stocks, the pet supply chain PetSmart (PETM) rose the most in the S&P 500. PetSmart gained $7.48, or 13 percent, to $67.28 after the activist investor firm Jana Partners disclosed a 9.9 percent stake in the company.

Investors sold bonds after the strong jobs report. The yield on the 10-year Treasury note rose to 2.64 percent from 2.63 percent late Wednesday. Bond yields rise when prices fall.

Trading was light. Roughly 1.8 billion shares changed hands on the New York Stock Exchange, the slowest day for Wall Street this year.

U.S. markets will be closed Friday for the Fourth of July holiday. U.S. stock trading will reopen Monday.


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78 Comments

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mac2jr

mac2jr
Your doctor is the person that is refusing to accept the low payments the insurance industry is offering, not President Obama or the PP&ACA..

Gitmo was ordered closed until FOX and others decided to MOUTH off and scare the living .... out of 90% of the population, this was pure BS and you know it. We have much more dangerous criminal in U.S.A. stateside jails at less than 10% of the cost of keeping each at Gitmo..

The wars were, and are ended for us as we should NEVER have started each in the first place; what is happening now are Civil Wars between political and religious nut cases.

A all is good, the stock market is 17,000, the UE is down to 6.1%, the minimum wages are going up, and every part of the economy is better off than when President Obama took over from the most disgraced president the country has ever known.

Wake up America, WAKE UP.... please..

July 06 2014 at 11:36 PM Report abuse rate up rate down Reply
jrb359

A great jobs report? How many are part-time that pay less than $10 an hour? Thanks Mr. president. How about some golf or maybe another expensive vacation?

July 06 2014 at 6:47 PM Report abuse -1 rate up rate down Reply
weilunion

This is all lies. Pump and dumpt is the ruling class way. Wait until it crashes. Do not invest in fraudulent stock markets

July 06 2014 at 6:19 PM Report abuse +2 rate up rate down Reply
weilunion

I haven't read the propanda that they liars are giving you but this is all BS. The US is dead. A deb cancer ridden society. Do not believe the shills, the 'dopeys' the barracks' that write for this site. They are paid shills. The US is cooks the books. all lies all the time

July 06 2014 at 6:09 PM Report abuse rate up rate down Reply
1 reply to weilunion's comment
mac2jr

The first term was the start of two, not one, but two illegal wars that we had NO money for, and had to borrow from Japan, China, and others like Canada.

The first term was when HUD was ordered to DUMP hundreds of thousands of crap housing on the RE market and this is what started the 'RE BOOM'

The first term was when Bush changed the tax rates and gave away a trillion, while neglecting our infrastructure.

The first term was when Bush neglected our infrastructure and now we have to pay double and triple for the repairs and updates.

July 06 2014 at 11:30 PM Report abuse rate up rate down Reply
jrb359

This only works on the people that the WH tells how to think. The rest of us don't buy any of this BS!

July 06 2014 at 3:11 PM Report abuse -1 rate up rate down Reply
Kuntheer

And you can Keep your doctor, Gitmo is closed, and the wars ended!
It's ALL good! Would you like fries with that?

July 06 2014 at 2:17 PM Report abuse -1 rate up rate down Reply
1 reply to Kuntheer's comment
weilunion

Yes, fries and an order of cancer

July 06 2014 at 6:10 PM Report abuse -1 rate up rate down Reply
vector26436

Where is the report that the economy shrank 3% in the last three months...? The propaganda coming out of this White House is absolutely astounding and the Liberal Media is lapping up every word...

July 06 2014 at 1:28 PM Report abuse +1 rate up rate down Reply
Iselin007

Don't feed us data that ignores the fact that millions of people have been pushed out of the labor force to make the recovery look better.

They are importing people to displace US citizens like the Invasion of the Body Snatchers that would explain the 92.1 milion not in the labor.

July 06 2014 at 11:07 AM Report abuse rate up rate down Reply
1 reply to Iselin007's comment
weilunion

Right on, tell them!

July 06 2014 at 6:19 PM Report abuse rate up rate down Reply
nakkeddrummer4u

What seldom gets any attention is the Labor Force Participation Rate which has been stuck at 62.8 for the past 3 months. The LFPR, to me is the real measure of jobs. Right now only 62.8% of the workers actually have full time jobs, therefore, 37.2% are unemployed. The Employment numbers are manufactured and discount anyone whos' benefits have expired. So, you are out of work and not collecting = not reported in the mix. The economic recovery? Not very robust if one third of the population is out of work. Spin it anyway you like...........i.e. Inflation excludes food and oil prices.......WTF!! I don't know too many families who don't use gas to get to work or buy food to feed their families and if you've been to a gas station or supermarket lately you haven't seen prices come down now have you? It's all B.S.

July 06 2014 at 8:23 AM Report abuse -1 rate up rate down Reply
1 reply to nakkeddrummer4u's comment
Iselin007

Down load the BLS.gov employment report for June 2007. Note the high participation rate of 66.1. the 4.5 % unemployment rate, and less available people in the labor force and smaller not in the labor force.

The June 2014 totals show millions were added to the not in the labor force and a low 62.8 % participation rate.

So when your compare the past June 2007 stats with June 2014 you realize what a crock of crap the recovery has been!

July 06 2014 at 11:00 AM Report abuse -2 rate up rate down Reply
Iselin007

So let me know when the recovery comes because what I have seen is constant recessions, restructurings, closing and negative actions since the 1980's. You keep telling people to look for work when there is none then import people to increase the pain. There will never be enough people to buy things that have the right income unless you pay them. You can import your customers then deport them once their done shopping. Over 92 million 16 and over not in the workforce or 9.4 million unemployed. For crying out loud you don't know how many undocumented you have now that could be 30 million and your letting more in?

July 05 2014 at 10:45 PM Report abuse -3 rate up rate down Reply