Stocks advanced today, tallying a second straight weekly gain for the S&P 500, after government data indicated that the nation added more jobs than forecasted last month. â??The jobs report is pretty strong. Itâ??s a good number for equities because itâ??s supportive for earnings growth, which is what we need,â? Matthew Peron, head of active equities at Northern Trust Corp. in Chicago, said. â??We have to digest the backup in yields, we have to see how far do they go and get used to that level of rates.â?
Dollar Soars to 5-Week High Versus Yen (Reuters)
The dollar finished the day strong, as it surpassed both the yen and the euro, rising to a 5-week high against the yen and a six-week peak against the euro. Better-than-expected jobs data reinforced expectations that the Federal Reserve may begin to scale back its asset purchases in September. “The stronger-than-expected 195,000 payrolls in June should send U.S. rates scurrying higher and bring the day of reckoning for quantitative easing that much closer,” said Joseph Trevisani, chief market strategist at WorldWideMarkets. “The dollar will continue to benefit from the prospective terminus of QE.”
Job growth flourished in the hospitality and service sectors in June, and this promising news is likely to trigger more debate about how aggressively the Federal Reserve will begin pulling back off of its monetary easing policy. The question, however: is what will be the timing and degree of the withdrawal of the quantitative easing? â??The taper is on,â? said Kathy Jones, fixed income strategist at Charles Schwab. â??This is the last payroll report the Fed will see before their meeting at the end of July. With the upward revisions to the previous couple of months, it solidifies the idea that they will announce some tapering, probably in September.â?