After Market: Employment Tops '08 Peak, Stocks Hit New Highs

×


Slow but steady -- that seems to be the new mantra here on Wall Street. The Dow Industrials and the S&P 500 plowed further into record territory on Friday.

The catalyst for today's advance was the monthly jobs report, which showed the total number of people employed finally topped the 2008 peak it hit just before the Great Recession took hold.

The Dow Jones industrial average (^DJI) gained 88 points, the Standard & Poor's 500 index (^GPSC) rose 9, and the Nasdaq composite (^IXIC) gained 25 points.

Financial stocks helped lead the advance. Goldman Sachs (GS) and American Express (AXP) both gained more than 2 percent.

Bank of America (BAC) rose 1 percent on reports that it's in talks with the Justice Department to settle another set of probes into the bank's handling of mortgages leading up to and during the financial crisis. News reports say the company could pay more than $12 billion, which is more than it earned in all of 2013. But this could allow Bank of America to finally put this long-running problem behind it. Its stock has been virtually flat over the past 6 months.

Amazon (AMZN) posted a strong gain for second straight day, rising 2 percent, on indications that it's about to enter the smartphone business.

And Sears (SHLD) gained nearly 2 percent on a Reuters report that the company's chairman has held talks with outgoing Ford (F) CEO Alan Mulally, sparking rumors that he might head the retailer's turnaround effort.

Elsewhere, Hertz (HRZ) drove into a ditch, sliding 9 percent after saying it will restate earnings from 2011 through 2013 because of accounting issues.

Diamond Foods (DMND) fell 11 percent. Its quarterly loss widened, due to higher wholesale prices for nuts.

But Vail Resorts (MTN), Men's Wearhouse (MW), and VeriFone (PAY) all gained after beating expectations. Vail was up 6 percent; Men's Wearhouse rose 5½ percent; and VeriFone jumped 9 percent. Demand for its merchant payment systems has been helped by growing concern about hackers.

Finally, Caesars Entertainment (CZR) fell 3 percent on a Bloomberg report that the gaming company has received a default notice from a group of bondholders.

What to Watch Monday:

These major companies are scheduled to release quarterly financial statements:
  • Casey's General Stores (CASY)
  • Pep Boys-Manny Moe & Jack (PBY)
-Produced by Drew Trachtenberg.


Increase your money and finance knowledge from home

Investment Strategies

What's your investing game plan?

View Course »

Investing in Startups

The lucrative and risky world of startups.

View Course »

Add a Comment

*0 / 3000 Character Maximum

37 Comments

Filter by:
teaparty2implode

In a display of compromise rarely seen during his time in office, President Obama has signed into law a $858 billion tax cut bill despite the misgivings of members of both parties.

"We are here with some good news for the American people this holiday season," Mr. Obama said.

The bill, which was largely worked out earlier this month between the White House and Congressional Republicans, extends the Bush-era tax cuts for all Americans for two years, extends unemployment benefits for 13 months and includes a one-year Social Security tax cut, among other measures.

This is the reason Obama extended the Bush tax cuts, it wasn't for the 1% like d.barack believes. It was for the unemployed to extend benefits for 13 months.

d.barack, is blind as a bat when it comes to facts.

June 07 2014 at 1:14 PM Report abuse +5 rate up rate down Reply
clark8642

Many comments about lies told by President Obama. When you mention Iraq and WMD it is suddenly a question of bad intel. I guess one man's lie is another man's honest mistake. Of course there are degrees of importance whether we are talking lies, honest, mistakes or just bad luck. In the meantime our economy has a long way to go to get well and the new jobs in May are a small step along the way.

June 07 2014 at 11:04 AM Report abuse +5 rate up rate down Reply
lonewolfbearstar

Creating a REAL, economic recovery, will require rebuilding the nation's manufacturing base. To accomplish this goal, it will likely require restructuring the business tax code by providing tax CREDITS for companies manufacturing products IN AMERICA, employing AMERICANS, and leveling tax PENALTIES on companies that ship manufacturing and jobs overseas...

...Unfortunately, our bought-and-paid-for Copngress is too cowardly to consider such a COMMON SENSE solution..

June 07 2014 at 9:26 AM Report abuse +6 rate up rate down Reply
bsetrader1

Just look at the elections all throughout Europe and India, yes that is 2 billion people, the left in America are totally clueless. They like to make fun of conservatives for being insular and just listening to talk radio. The left only follow HuffPo, MSNBC, and a few other lefty websites and are totally ignorant of world affairs. They actually think the rest of the world is backwards and nothing worth knowing occurs outside of the beltway and San Francisco. Fact is most of the mush-headed brainwashed leftwing little sheep children perform more poorly in math and science than children from India's poorest provinces. The truth would make their heads explode and indeed, the left are not even aware of just how badly all left parties in Europe and the subcontinent have performed this year, and the backlash is heading across the pond.

June 07 2014 at 3:30 AM Report abuse rate up rate down Reply
1 reply to bsetrader1's comment
lonewolfbearstar

The fact is that the vast majority of Americans, across the ENTIRE political spectrum, are not paying attention to the elections in Europe and India, because they live HERE, not THERE - All politics are local.

The fact is that the vast majority of Americans arte not paying attention to the political blah, blah, blah put out across the ENTIRE polical spectrum, because they have far more important things to do with their time - like LIVING THEIR LIVES.

The fact is that Americans across the ENTIRE political spectrum DO have awareness of world events, but they do not spend every, waking hour OBSESSING overTHEMt, because, again, they have far, more important things to deal with in the course of LIVING THEIR LIVES.

June 07 2014 at 8:52 AM Report abuse +5 rate up rate down Reply
bsetrader1

Fact is America will follow India in two years throwing out another corrupt regime. Obama is about the closest example of Nehru socialism in the Western world and if you look at all the scandals, they are just like the scandals and corruption that have plagued India. Like Sonia Gandhi, Obama has never had a real job, never produced value for anyone, never had any real world responsibilities, and has questionable ties to his country (just like Sonia is more of an Italiana than Desi). Obama IS THE MANCHURIAN CANDIDATE.

June 07 2014 at 3:25 AM Report abuse +4 rate up rate down Reply
2 replies to bsetrader1's comment
Michele

As soon as we can get rid of him, that's including Hillary Clinton, Reid and Pelosi. Then maybe, just maybe we can rise up again here in the U.S.. As long we have the likes of those I mentioned above, we will keep on sinking.

June 07 2014 at 6:04 AM Report abuse +2 rate up rate down Reply
1 reply to Michele's comment
lonewolfbearstar

So who is going to be the next occupant in the WH?

June 07 2014 at 8:54 AM Report abuse +4 rate up rate down
lonewolfbearstar

"The Manchurian Candidate" is a great novel, but is only a novel, and once finished reading it, one needs to set it aside, and resume living in the real world.

June 07 2014 at 10:10 AM Report abuse +3 rate up rate down Reply
R

Those numbers are bogus. The unemployment extension was never signed - hundreds of thousands, maybe more, are still unemployed. But they aren't being counted because Obama wants the numbers to look good. Nothing but more lies from Obama and his administration. Problem for him is that most people already know this fact.

June 07 2014 at 2:04 AM Report abuse -2 rate up rate down Reply
2 replies to R's comment
a2004ssr

Whiny repukes are mad that the economy is stronger every day.

June 07 2014 at 2:12 AM Report abuse +1 rate up rate down Reply
clark8642

It appears that you believe that if you are not drawing unemployment compensation you are not counted as unemployed. If so, you are incorrect. If you are unemployed and looking for work you are counted in the unemployment data whether you are drawing UC or not. If you are unemployed and not looking for work you are not counted. Still, you are correct that there are many who are unemployed or underemployed. Maybe it is time for tariffs to offset the benefits obtained by foreign companies in countries with weak or non-existent worker safety and environmental rules. And to offset the cost savings of government provided health care and the benefits of currency manipulation. Easy fixes that would encourage progress in foreign countries, raise production and revenue for us, and correct the effects of those foreign subsidies on the price mechanism, improving economic efficiency.

June 07 2014 at 8:57 AM Report abuse +4 rate up rate down Reply
Rob

It is not good news when the total employment rate is slightly higher than it was six years ago. That discounts the 15 million plus new entrants into the workforce. The participation rate is still very low and the number of long term unemployed really high. Only in a stagnant economy with no prospect of growth can this be considered good news. Maybe last year the report could have read we have really reached 2004 employment levels. This is just spin, period.

June 06 2014 at 10:57 PM Report abuse +3 rate up rate down Reply
1 reply to Rob's comment
Marquita

Didn't you just discount the millions that left the workforce due to retirement, health reasons, etc.? Baby Boomers are retiring bigtime.

June 07 2014 at 3:02 AM Report abuse +4 rate up rate down Reply
1 reply to Marquita's comment
Michele

Many are being FORCED into retirement. Against what they wanted to do. Many are being told that they are being fired to bring in newbies from India. But before they're fired, these people are being TOLD that they have to train the ones in India. I know this as a fact because a friend of mine is going through it right now with Sony Corporation.

June 07 2014 at 6:07 AM Report abuse +3 rate up rate down
teaparty2implode

Jobs: Obama Beats Bush

Now that we have figures for the full four years of Obama’s first term, a surprising fact emerges: The economy added more jobs during four years under Obama than it did in the entire eight years under Bush.

By the time of Obama’s second inaugural in January, the economy had added a net total of 1,208,000 jobs since he was first sworn in four years earlier, according to current figures from the Bureau of Labor Statistics. That beats George W. Bush’s eight-year total of 1,083,000.

And so far, Obama is extending his lead over Bush. Counting jobs added in February, his total now stands at a net gain of over 1.5 million jobs.

Neither president’s record is good by historical standards, especially when compared with the 22.8 million jobs added during Bill Clinton’s eight years in office. The Bush years were hampered by a recession and prolonged job slump that began within weeks of his taking office in 2001, and later by the devastating recession of 2007-2009.

The economy lost 8.7 million jobs as a result of the 2007-2009 recession, the worst since the Great Depression of the 1930s. Those losses included 4.4 million jobs lost during Bush’s final year, and another 4.3 million during Obama’s first 13 months in office. But since then, all the jobs initially lost under Obama have been regained, plus another 1,564,000.

June 06 2014 at 10:43 PM Report abuse -2 rate up rate down Reply
2 replies to teaparty2implode's comment
teaparty2implode

Must have been those Shovel Ready Jobs.

June 06 2014 at 10:45 PM Report abuse rate up rate down Reply
2 replies to teaparty2implode's comment
teaparty2implode

Shovel ready jobs did exist right here in Chicago DF. They worked on the Burnham bridge and posted signs that stated Shovel Ready Jobs.

June 07 2014 at 12:35 PM Report abuse +2 rate up rate down
teaparty2implode

Keep ignoring facts like republicans do, DF.

June 07 2014 at 1:01 PM Report abuse +2 rate up rate down
gildersleeve9

Fast food jobs don't really count as they aren't good jobs as the politicians say. Were are the middle class manufacturing jobs? I don't care who is president at the time but where are the jobs? I have a good job but too many educated people I know don't and it disturbs me.

June 06 2014 at 11:32 PM Report abuse +4 rate up rate down Reply
1 reply to gildersleeve9's comment
teaparty2implode

Fast food jobs have been here long before Obama came into office. The middle class manufacturing jobs were outsourced under Bush.

June 07 2014 at 12:16 PM Report abuse +1 rate up rate down
YourFtr

Obama's lack of a coherent and reasoned foreign policy anywhere will sooner or later cause such a crises; because of a failure, that the air is going to go out of his economic balloon.

June 06 2014 at 10:29 PM Report abuse -2 rate up rate down Reply
YourFtr

The jobs aren't the same type jobs the people had in 2008; these are two minimum wage jobs........to partly make up for the one they lost.
Left to itself; the economy and stock market will always trend upward; in spite of Obama's lack of economic or jobs initiatives and help.
The fact that some people have loads of stocks and thereby reap loads of dividends is
unrelated to the increase of base jobs and/or the stock market trending upward.......

June 06 2014 at 10:22 PM Report abuse -2 rate up rate down Reply
1 reply to YourFtr's comment
teaparty2implode

It was Obama who tried to pass the American Jobs Act, which would have provided millions of jobs repairing our crumbling infrastructure. The TPGOP blocked it. So where is the TPGOP's job bill to put millions of people to work ? Oh yeah, where is the TPGOP's healthcare plan ?

June 06 2014 at 10:38 PM Report abuse -2 rate up rate down Reply