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Stocks Stand Tall Again, As Payroll Data Overshadow Trump

U.S. stock indexes advanced on strong economic data Friday with the Nasdaq 100 leading the pack. A dozen stocks in the Nasdaq 100 rose 2% or more, including chipmaker Intel (INTC), industrial distributor Fastenal (FAST) and internet play Alphabet (GOOGL).

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The Nasdaq 100 rose 1.3% while the broader Nasdaq composite gained 1.2%. The S&P 500 and the Dow Jones industrial average advanced 0.9% and 0.8%, respectively. Small caps trailed as the S&P 600 added 0.7%.

Volume in the stock market rose on the NYSE but eased on the Nasdaq.

In Europe, stocks also were up sharply despite the Trump tariffs on steel and aluminum. The tariffs took effect midnight Thursday.

At a news conference Friday, European Commissioner Cecilia Malmström called the U.S. action an illegal and classic act of protectionism. She said the case would be brought before the World Trade Organization.

Strong Economic Data

Yet the U.S. employment statistics dominated the picture Friday. Nonfarm payrolls rose 223,000 in May, a stunning 17% more than 190,000 expected.

Construction spending for April also blew away estimates. The Street expected a 0.8% gain. The percentage came in at 1.8%. On a year-ago comparison, construction spending is up 7.6%.

Lately the market has been focused on President Trump’s protectionist bent, overlooking earnings and other fundamental criteria. The bulls were happy to see fundamentals step back into the picture.

Four Breakouts

But breakouts remained rare late Friday morning. IBD identified seven breakouts. However, three were thinly traded stocks.

The four with ample liquidity were cloud-based commerce platform Shopify (SHOP), Hyatt Hotels (H), pipeline play Noble Midstream Partners (NBLX) and virtualization software provider VMware (VMW).

(For updates on this story and other market coverage, check IBD’s stock market news today.)

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