Stocks Close Higher As Market Cheers Strong Jobs Report

The Nasdaq composite closed sharply higher Friday as the stock market rallied after a better-than-expected jobs report and shrugged off trade worries.


The Nasdaq climbed 1.3% and is within 1% of a new high. The S&P 500 rose nearly 0.9%. Both indexes are adding some space above their 50-day moving averages, a positive trend.

The Dow Jones industrial average added 0.4%. It is holding above the 200-day line but still below the nearby 50-day average. Dow components Microsoft (MSFT) and Apple (AAPL) rose as they found support at the 50-day moving average. Both tech giants are in follow-on buy areas, although volume Friday was about half their normal pace.

The Russell 2000 climbed 0.7%.

Volume rose on the Nasdaq and fell on the NYSE, according to preliminary data. Advancers topped decliners by 13-5 on the NYSE and by 12-5 on the Nasdaq.

Indexes opened higher after the Labor Department reported that U.S. employers added 213,000 jobs in June, above forecasts for 190,000. The unemployment rate rose to 4%, vs. a forecast for 3.8% and still near the lowest point in nearly a half century.

With the labor market tight, Wall Street was interested in wage growth, which rose at an acceptable 2.7% annual rate. Economists expected 2.8% wage growth.

The U.S. is imposing an additional duty of 25% on about $34 billion worth of Chinese imports. China retaliated on Friday with 25% tariffs on imports of U.S. products, mostly agricultural goods.

It was a good day for leading stocks as the IBD 50 climbed more than 1.5%. Momo (MOMO), the Chinese social media platform, surged 5.5% after finding support in a pullback to the 50-day moving average.

Biogen (BIIB) rocketed 19% after the biotech company said an Alzheimer’s treatment slowed progression in Alzheimer’s disease patients. The rally left the stock near the 370.67 buy point of a cup base.

This Health Care Stock Breaks Out

Omnicell (OMCL) broke out of a long base, clearing a 55.50 buy point. Volume was more than 50% above average but the relative strength line did not quite make a new high. Omnicell makes medication safety and health care operations systems.

The stock also produced an eight-day handle within its base, offering an earlier entry point at 53.85.


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Originally posted 2019-09-19 23:16:22.


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