MARKETS-STOCKS/USA OPEN-JOBS Wall Street up at open as tepid job data eases rate hike concerns

Record ID: 148676

  • Title: MARKETS-STOCKS/USA OPEN-JOBS Wall Street up at open as tepid job data eases rate hike concerns
  • Date: 2nd July 2015
  • Summary: FLINT, MICHIGAN, UNITED STATES (FILE) (REUTERS) VARIOUS OF GENERAL MOTORS LIGHT TRUCK/PICKUP MANUFACTURING FERNDALE, MICHIGAN, UNITED STATES (FILE) (REUTERS) VARIOUS OF WORKERS AT THE GARDEN FRESH SALSA AND HUMMUS FACTORY
  • Embargoed: 17th July 2015 13:00
  • Keywords:
  • Topics: General
  • Reuters ID: LVAKWZQ3H8OZFMR7641WYSG3J27
  • Aspect Ratio: 16:9
  • Story Text: U.S. stocks rose on Thursday (July 2) after data showed job growth slowed in June, indicating that the U.S. Federal Reserve might hold off on raising interest rates in September.
    Eight of the 10 major S&P 500 sectors rose, with the utilities index leading the gains with a 1.5 percent rise.
    Nonfarm payrolls increased 223,000 last month, below the 230,000 that economists polled by Reuters had expected.
    "It was a little weaker than what we were looking for - we were looking for 240,000 job gains because there were some strong readings that were coming out from housing, even from manufacturing that suggested it could be a little bit more of a bounce, but we still are comfortable with the numbers," said Beth Ann Bovino, U.S. chief economist with Standard & Poor's.
    The Fed has kept short-term rates near zero since December 2008, resulting in reduced borrowing costs for companies, but the jobs numbers keep the Fed on track to begin to raise interest rates in September, says Bovino.
    "I think that's going to give them some confidence that the jobs market is getting stronger. The wage readings a little bit of a disappointment but I don't think that's going to slow them down because again, what they want to see is that wages are going up and we do see two percent year-over-year. We don't want to see that going down further. I think that would be a bit of a concern but I don't think that's going to slow them down and I do expect them to raise rates in September," said Bovino.
    BP's U.S.-listed shares rose 4.2 percent to $40.89 (USD) after the oil and gas producer settled damages claims from the U.S. government and five states from the Gulf of Mexico oil spill for $18.7 billion.
    At 10:04 a.m. EDT (1404 GMT) the Dow Jones industrial average was up 38.55 points, or 0.22 percent, at 17,796.46, the S&P 500 was up 4.73 points, or 0.23 percent, at 2,082.15 and the Nasdaq Composite was up 1.84 points, or 0.04 percent, at 5,014.96.
    Advancing issues outnumbered decliners on the NYSE by 1,745 to 1,013, for a 1.72-to-1 ratio on the upside. On the Nasdaq, 1,352 issues fell and 1,035 advanced for a 1.31-to-1 ratio favoring decliners.
    The S&P 500 index showed 15 new 52-week highs and 4 new lows, while the Nasdaq recorded 34 new highs and 32 new lows.
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