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US markets end sharply higher on better than expected jobs data

09 Jul 2016 Evaluate
US markets came out of slumber and surged on Friday to end near their best levels of the day, reacting to the closely watched monthly jobs report, the Labor Department in its report showed much stronger than expected job growth in the month of June. The non-farm payroll employment surged up by 287,000 jobs in June versus  estimates for an increase of about 180,000 jobs. However, the Labor Department also said the uptick in jobs in May was downwardly revised to just 11,000 from the 38,000 originally reported. The report also said the unemployment rate rose to 4.9 percent in June from 4.7 percent in May, the increase primarily reflected a rebound in the number of people in the labor force. On the wage front, the Labor Department said average hourly employee earnings rose by $0.02 to $25.61 in June after rising by $0.06 in May.

In other positive economic news, consumer credit in the US increased by more than anticipated in the month of May. The Federal Reserve said consumer credit climbed by $18.6 billion in May after rising by $13.4 billion in April. Non-revolving credit such as student loans and car loans jumped by $16.2 billion in May following a $12.1 billion increase in the previous month, while the revolving credit, which largely reflects credit card debt, edged up by $2.3 billion in May after inching up by $1.4 billion in April.

The Dow Jones Industrial Average surged by 250.86 points or 1.4 percent to 18,146.74, the Nasdaq gained 79.95 points or 1.64 percent to 4,956.76 and the S&P 500 jumped by 32.00 points or 1.53 percent to 2,129.90.

Indian ADRs ended in green, HDFC Bank was up by 1.17%, ICICI Bank was up by 0.17%, Tata Motors was up by 0.85% and Infy gained 0.17%.

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