Dow Jones Industrial Average Explodes to Two-Month High

Stocks Soar Post-Payrolls; Plus, the Pair Making M&A Noise

by Josh Selway

Published on May 8, 2015 at 4:27 PM

The Dow Jones Industrial Average (DJIA) ended a volatile week on a high note, boosted by a nonfarm payrolls report that hit the sweet spot for traders. Specifically, while the data showed the job market is improving, investors are no longer as fearful of the Fed raising interest rates in June. By the time the dust settled, the Dow notched its highest close in two months, with all 30 components sitting in the black.

 

Continue reading for more on today's market, including:

 

 

The Dow Jones Industrial Average (DJIA - 18,191.11) finished at its highest point in two months, adding 267.1 points, or 1.5%. All 30 of the index's components ended higher, led by Visa Inc (NYSE:V), which added 4.3% amid rumors of a deal to sell Visa Europe. For the week, the Dow added 0.9%.

 

The S&P 500 Index (SPX - 2,116.09) zoomed higher as well, adding on 28.1 points, or 1.4%, easily taking out the 2,100 level. The Nasdaq Composite (COMP - 5,003.55) took back the 5,000 mark with a 58-point, or 1.2%, advance. Week-over-date, the SPX added 0.4%, while the COMP finished just 0.04% below breakeven.

 

The CBOE Volatility Index (VIX - 12.86) took a tumble, losing 2.3 points, or 15%, to fall below its 10- and 20-day moving averages. The VIX ended the week up 1.3%. 

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5 Items on Our Radar Today:

 

  1. U.S. jobs rose month-over month in April, but not enough to make traders worry about a June rate hike. For the month, the economy added 223,000 jobs, with unemployment falling to a seven-year low of 5.4%. (Forbes)
  2. The Department of Justice will be investigating the Baltimore police department at the request of Mayor Stephanie Rawlings. The investigation -- triggered by the death of Freddie Gray -- will look for a history of discrimination and excessive use of force. (Reuters)
  3. The biopharmaceutical stock that scorched a path to record highs
  4. How FireEye Inc (NASDAQ:FEYE) benefited from a sector peer
  5. It seems like everyone wants Nokia Corporation's (ADR) (NYSE:NOK) map business.

 

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Commodities:

 

Crude oil moved higher as another decline in domestic rig counts was reported. Crude for June delivery closed 45 cents, or 0.8%, higher at $59.39 per barrel. On the week, liquid gold tacked on 0.4% -- its eighth straight weekly gain. 

 

Gold futures jumped higher, as the nonfarm payrolls report diminished expectations for a summer rate hike. June-dated gold rose $6.70, or 0.6%, to finish at $1,188.90 per ounce. On a weekly basis, the precious metal added 1.2%.

 


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