Stocks Zoom; Dow Up 95.16
Jun. 05, 1998
NEW YORK (AP) _ Stocks shot higher today as a robust employment report helped calm concerns about company profits rather than set off another wave of inflation jitters.
At 2 p.m. on Wall Street, the Dow Jones industrial average was up 95.16 at 8,965.72 after bobbing above 9,000 with a 131-point gain.
Broad-market indicators were also posting sizable gains, although the Nasdaq composite index turned lower as the fragile recovery among bellwether technology shares faltered again.
The Labor Department reported this morning that the nation's unemployment rate held at a 28-year low of 4.3 percent in May.
The seasonally adjusted rate matched April's reading, which was the lowest since February 1970. Many analysts had thought the April rate was a fluke, but the May figure confirmed the continuation of the strong labor conditions.
The continued strength in payroll and wage levels _ two major forces behind inflation _ may eventually prompt the Federal Reserve to slow the economy with higher interest rates. But investors shrugged off concerns of a rate hike today, with the strong jobs report improving the outlook for corporate profits.
Advancing issues outnumbered decliners by an 8-to-5 margin on the New York Stock Exchange, where volume came to 384.20 million shares, up slightly from Thursday's pace.
The Standard & Poor's 500 index was up 10.83 at 1,105.66, but the technology-heavy Nasdaq composite index was down 1.79 at 1,768.16 after surrendering a 12-point gain.
The NYSE composite index was up 6.10 at 572.45, and the American Stock Exchange composite index was up 2.50 at 711.96.
Overseas, Tokyo's Nikkei stock average fell 0.7 percent, Frankfurt's DAX index rose 1.7 percent and London's FT-SE 100 rose 1.5 percent.