* May payroll report shows pace of hiring remains solid
* Indexes extend recent rally, on track for strong week
* Hertz Global falls, to restate financial results
* Indexes up: Dow 0.3 pct, S&P 0.3 pct, Nasdaq 0.4 pct
(Updates to open)
By Ryan Vlastelica
NEW YORK, June 6 U.S. stocks rose on Friday,
with major indexes extending a rally that has taken them to
repeated records, after the May payrolls report provided the
latest confirmation that economic conditions were improving.
The day's gains were broad and led by cyclical sectors,
which outperform in times of economic expansion. Financials
were the day's biggest gainers, up 0.5 percent, followed
by consumer discretionary names, up 0.4 percent. The
only S&P 500 sectors that fell on the day were telecom and
utilities, both of which are defensive groups.
About 217,000 jobs were added in May, slightly fewer than
expected, while the unemployment rate held steady at 6.3
percent. This is the first time job growth has topped 200,000
for four consecutive months since January 2000.
The S&P 500 is on track for its tenth rise of the past 12
sessions. If it ends at a record on Friday, which it is on track
to do, that will mark its sixth record in the past seven
"The market's momentum will eventually wane, but
fundamentals look OK to fairly strong, and I'll take strong
economic data like this any day," said Andres Garcia-Amaya,
Global Market Strategist at J.P. Morgan Funds in New York, which
has $400 billion in assets under management.
The Dow Jones industrial average rose 47.21 points or
0.28 percent, to 16,883.32, the S&P 500 gained 5.09
points or 0.26 percent, to 1,945.55 and the Nasdaq Composite
added 16.53 points or 0.38 percent, to 4,312.75.
For the week, the Dow is up 1 percent, the S&P is up 1.1
percent and the Nasdaq is up 1.6 percent. Both the Dow and S&P
are on track for a third straight weekly advance, while the
Nasdaq is on track for its fourth.
The CBOE Volatility index fell 2.5 percent, building
on its decline of 3.3 percent on Thursday. The "fear index" has
been at historically low levels for several weeks, which has
some worried the market is complacent. Light trading volume on
positive market days has also been viewed as a possible warning
Mining equipment maker Joy Global Inc jumped 2.6
percent, building on its 6.7 percent rally on Thursday on the
back on strong results. The stock is on track for its biggest
weekly gain since August 2012.
Peabody Energy Corp was the biggest percentage
decliner on the S&P 500, down 2.2 percent to $16.21 after
Goldman Sachs downgraded the stock to "neutral."
Hertz Global Holdings Inc tumbled 10 percent to
$27.39 after the company said it would restate financial results
for the past three years to correct accounting errors from 2011.
Novavax Inc was the Nasdaq's most active stock,
down 7.5 percent to $4.18 in heavy volume a day after a public
offering of 25 million common shares was priced at a discount to
its Thursday close.
(Editing by Bernadette Baum and Nick Zieminski)