NEW YORK (CNNfn) - Wall Street investors read bullish news in Friday's release of employment figures for May and sent stock prices rallying at the end of what had been a tough week for the market.
The Dow Jones industrial average rose 136.15 points, or 1.3 percent, to 10,799.84. The blue chip index finished the week 2.27 percent higher, extending its gain for the year to 17.63 percent. Market breadth on the New York Stock Exchange was positive, with gainers ahead of losers by 1,826 to 1,098. Trading volume reached 696 million shares.
Technology stocks remained far ahead of the broader market, pushing the tech-heavy Nasdaq Composite up 75.02 points, or 3.1 percent, to 2,478.34. The technology-weighted index inched up 0.32 percent this week, its gain for the year increasing to 13.03 percent.
The S&P 500 index rallied 28.21, or 2.2 percent, to 1,327.75. The broadest blue chip index rose 1.96 percent for the week and its gain for the year now stands at 7.99 percent.
Despite Friday's uptick in the market, however, Ralph Acampora, chief technical analyst at Prudential Securities, said he does not think that what he sees as a "normal, healthy correction" is over for the stock market. (220K WAV) or (220K AIFF)
A similar return of uncertainty in the bond market forced bonds slightly into the red after heading higher on the non-farm payrolls report, which showed that the economy created a meager 11,000 jobs in May. Although the unemployment rate dropped to 4.2 percent -- matching its lowest level in nearly three decades -- and the previous month's employment growth was upwardly revised to 343,000 from 234,000, market watchers read positive signals in the report.
However, the bellwether 30-year Treasury bond was unable to maintain the vaguely positive sentiments, instead slipping 5/32 of a point in price to yield 5.96 percent.
A larger-than-expected increase in average hourly earnings, the jobs report's most closely watched inflation component, helped inspire the bond market's uncertainty, feeding fears that an interest rate increase by the Federal Reserve could come in before the month is over.
"There is no closure from these numbers," said Bryan Piskorowski, vice president and market analyst at Prudential Securities. "Nothing has been sorted out."
The dollar was slow to react to the jobs report, but extended its morning gains against the yen while dipping slightly against the euro.
Rebound fragile for banks, techs
Back in the stock market, most sectors rallied strongly, after being led early on by interest-rate sensitive financial and technology stocks. Both sectors have suffered high volatility, but the revived hope that the Fed may wait to raise rates calmed investors, spurring a return to recently shunned stocks.
Financial stocks were among the main beneficiaries of the last-hour pickup in buying activity, leaving American Express (AXP) up 3-7/16 at 125-1/16, fellow Dow financial component Citigroup (C) 1-7/16 higher at 43-11/16 and J.P. Morgan (JPM) up 13/16 at 132-9/16.
The technology side of the blue-chip index was mixed, lagging the Nasdaq's technology leaders. IBM (IBM) added 3-1/16 to 116 but Hewlett Packard (HWP) retreated 15/16 to 90-1/2.
On the Nasdaq, where most big-name tech companies trade, Cisco (CSCO) shares celebrated rate fears' retreat, surging 6-1/16 to 114-7/8. Microsoft (MSFT) climbed 3-3/16 to 79-9/16 and Intel (INTC) gained 2-11/16 to 53-3/16 Among the computer makers, Dell (DELL) inched up 11/16 to 33-7/8.
Elsewhere in the day's thin list of newsmakers, Dow component Procter & Gamble (PG) got a boost from expectations that the company will announce a massive restructuring initiative next week. Shares climbed 3-1/8 to 96-5/8.
(Click here for a look at today's list of CNNfn's market movers.)
(Click here for a look at today's CNNfn technology stocks report.)
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