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BUSINESS Saturday 8 July 2017
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Solid June jobs report gets tech and consumer stocks jumping

By MARLEY JAY ter than any other industrial
AP Markets Writer group within the S&P 500
NEW YORK (AP) — U.S. this year.
stocks climbed Friday af- Despite Friday’s gains,
ter the government said technology stocks have
hiring grew at a stronger had a bad month. The Nas-
pace in June. Technology daq composite closed at
and consumer-focused an all-time high June 8 and
companies led the way the S&P 500 technology
as investors were glad to index closed at a 17-year-
see a positive sign for the high. Since then the tech
economy. index has dropped 4 per-
The Labor Department cent, its worst one-month
said American employ- stretch since Britain voted
ers added 222,000 jobs to leave the European
last month. That was more Union last June. Apple and
than analysts had expect- Alphabet, Google’s par-
ed, and it came just a day ent company, have both
after a survey that showed fallen almost 8 percent in
weaker job creation by that time, while chipmaker
private companies. Stocks Nvidia is down 10 percent
regained much of the and smaller chip and chip
ground they lost Thursday. Trader Brian Sears works on the floor of the New York Stock Exchange. U.S. stocks climbed Friday equipment companies
Technology companies after the government said hiring grew at a stronger pace in June. Technology and consumer- have taken even sharper
jumped and retailers like focused companies led the way as investors were glad to see a positive sign for the economy. losses.
Amazon and McDonald’s (AP Photo/Richard Drew) “If the markets are to go
traded higher. Bond yields higher, it’s got to come
climbed and the dollar got standpoint.” index of smaller-company Still, companies that would from somewhere other
stronger. Gold fell. The Standard & Poor’s stocks added 15.02 points, benefit from better eco- than technology,” said
“The data itself shows a 500 index picked up 15.43 or 1.1 percent, to 1,415.84. nomic growth, like banks Lynch.
pretty strong labor mar- points, or 0.6 percent, to The government said more and industrial companies, McDonald’s rose $3.18, or
ket,” said Sean Lynch, co- 2,425.18. The Dow Jones people looked for work in made strong gains. 2.1 percent, to $156.27.
head of global equity strat- industrial average gained June, which pushed the Facebook added $2.62, or Amazon picked up $13.62,
egy for the Wells Fargo In- 94.30 points, or 0.4 per- unemployment rate slightly 1.8 percent, to $151.44 and or 1.4 percent, to $978.76
vestment Institute. He said cent, to 21,414.34. It fell 158 higher. The government Microsoft rose 89 cents, or and Netflix advanced
it “probably lays to rest points a day earlier. The also raised its estimates of 1.3 percent, to $69.46 as $3.93, or 2.7 percent, to
some of the worries (that) Nasdaq composite rose job gains in April and May. technology companies $150.18. Homebuilder D.R.
we were taking a step 63.61 points, or 1 percent, However average wage made the biggest gains Fri- Horton added $1.30, or 3.8
back from an economic to 6,153.08. The Russell 2000 growth remained modest. day. They have done bet- percent, to $35.79.q

Federal Reserve tells Congress further rate hikes on the way

By MARTIN CRUTSINGER pects to begin reducing its lysts predicted the size of
AP Economics Writer massive bond holdings this the June gain would keep
WASHINGTON (AP) — The year. the Fed on track to raise
Federal Reserve said Friday The Fed’s “Monetary Policy rates again. Many say the
it expects the U.S. economy Report,” presented twice next rate hike will likely oc-
will strengthen and warrant a year, cited a number of cur in September, after
further gradual increases in reasons to be optimistic which the Fed will begin
its key interest rate. about the economy. trimming its bond holdings.
That rate forecast was in- The report said while con- The Fed’s $4.5 trillion bal-
cluded in the Fed’s semi- sumer spending, which ance sheet is five times
annual monetary report accounts for 70 percent the size of the holdings it
to Congress, which Chair of economic activity, was had in the summer of 2008
Janet Yellen will deliver to sluggish at the start of before the worst financial
Congress next week. The 2017, it “appears to have crisis in seven decades.
Fed has raised interest rates rebounded recently sup- That pushed the country
three times since Decem- ported by job gains, rising into a deep recession and
ber, pushing its benchmark household wealth and fa- forced the central bank to
rate to a range of 1 per- vorable consumer senti- cut its federal funds rate to
cent to 1.25 percent. The ment.” Likewise, business a record low near zero and
Fed noted that policymak- investment has acceler- use an array of policy tools
ers still expect one more ated, the Fed said after to jump-start economic
rate hike this year and an- being weak for much of Federal Reserve Chair Janet Yellen speaks in Washington. Yel- growth. The bonds were
other three hikes in 2018. 2016, helped by a surge in len released her semiannual report to Congress, Friday, July 7, purchased in an effort to
The Fed said this projected spending on drilling and 2017. (AP Photo/Susan Walsh) keep long-term interest
pace of hikes would still mining activity. rates low.
allow the labor market to “The committee currently The monetary report is nor-
keep strengthening and expects that the ongoing rate,” the report said, refer- Friday that employers add- mally released on the first
inflation to climb to the strength in the economy ring to the Fed’s key policy ed a bigger-than-expect- day of Yellen’s congressio-
Fed’s 2 percent target. The will warrant gradual in- rate. ed 222,000 jobs in June, the nal testimony that accom-
Fed also signaled that it ex- creases in the federal funds The government reported most in four months. Ana- panies the report. q