Major US stock indexes finished trading with a moderate increase, as the data surpassing the forecast on changes in the number of employed in non-agricultural sectors of the US economy increased expectations that the upward trend in the labor market could allow the Fed to go for the third increase in the interest rate this year, despite weak inflation .
The report of the Ministry of Labor showed that the number of jobs in the US increased more than expected in June and employers increased the number of working hours, which indicates the strength of the labor market. According to the report, the number of people employed in non-agricultural sectors jumped by 222,000 jobs last month, outpacing the expectations of growth economists by 179,000 jobs. Data for April and May were revised, and more was created for 47,000 new jobs than previously reported. At the same time, the unemployment rate rose to 4.4% from a 16-year low of 4.3%, which was caused by the fact that more people were looking for a job, which indicates a confidence in the labor market. The unemployment rate fell by four tenths of a percent this year and is close to the last median median forecast for 2017. The average work week increased to 34.5 hours from 34.4 hours in May. The average hourly earnings increased by four cents or 0.2% in June after rising 0.1% in May. This increased the annual wage growth to 2.5% from 2.4% in May.
Most components of the DOW index recorded a rise (24 out of 30). The leader of growth were shares of McDonald's Corp. (MCD, + 2.16%). Outsider were shares of The Goldman Sachs Group, Inc. (GS, -0.67%).
All sectors of S & P finished the session in positive territory. The technological sector grew most (+ 1.1%).
At closing:
Dow + 0.44% 21.412.97 +92.93
Nasdaq + 1.04% 6,153.08 +63.62
S & P + 0.64% 2.425.18 +15.43
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