The jump above 17000 was spurred by a report from the Bureau of Labor Statistics showing U.S. employers added 288,000 jobs in June, well above the 215,000 expected by economists.The unemployment rate unexpectedly fell to 6.1% in June, from 6.3% a month earlier.
The strong report for June led some analysts and investors to wonder if the Federal Reserve will raise interest rates sooner than expected. The odds of a rate increase at the Fed’s June 2015 meeting were 57% after the report, up from 51% a day earlier, according to data from CME Group. A month ago, the odds were 43%. Meanwhile, the yield on the U.S. Treasury 10-year note 10-year rate ticked up to 2.65%.
But for now, stock investors don’t see higher interest rates as an immediate worry with inflation pressure still low. Instead the evidence of an improved labor market was seen as supporting the run higher in stocks this year. The S&P 500, which is more commonly used as a market benchmark by professional investors, has been on its own record-breaking push higher. It has set 25 new highs in 2014 and is just 0.7% away from breaching the 2000 level for the first time. The S&P tracks 500 stocks, a broader swath of the market than the 30 issues in the Dow.
International stocks trading in New York closed higher on Thursday. The Bank of New York index of American depositary receipts rose 0.50% to 159.32. The European index increased 0.55% to 158.49, the Asian index edged up 0.26% to 153.11, the Latin American index rose 1.04% to 292.80 and the emerging markets index rose 0.73% to 295.67. Among the companies with shares that actively traded were NQ Mobile Inc. (NQ) and Barclays PLC (BCS, BARC.LN).
On Thursday scandal-plagued Barclays presented its “Compliance Career Academy.” Delivered in partnership with Cambridge Judge Business School, the project aims to train all 2,100 Barclays compliance staff in how to protect the interests of the bank’s customers. Shares rose 1.14% to $15.11.
Unipetrol AS (UNPTY, BAAUNIPE.PR) Thursday said it has agreed to buy out the entire stake held by a unit of Eni SpA (E, ENI.MI) in a Czech crude oil refinery for 30 million euros ($40.8 million) in a transaction that put the Czech petrochemical company in full control of refining capacities in the country. Eni’s shares rose 0.22% to $55.30.
The European Union has approved GlaxoSmithKline PLC’s (GSK, GSK.LN) and Genmab A/S’s (GEN.KO) leukemia treatment Arzerra to be used in patients unable to use an alternative drug. Shares rose 0.41% to $54.52.