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Shares soar to records on jobs report

Thursday, Jul 03, 2014 - 02:18

Thursday's jobs report shows robust job creation and a dip in unemployment; American Apparel Founder Dov Charney's latest move; A possible buyout for Lululemon?; ECB assurances. Lily Jamali reports.

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Thursday's stronger than expected jobs report sent shares soaring, pushing the Dow past the 17,000 mark. The S&P 500 came closer to piercing the 2,000 milestone. Markets closed early Thursday ahead of Friday's holiday. The Dow, the S&P 500, and the Nasdaq all ended up about half a percent. The Dow was up 1.3% for the week. The Nasdaq higher by 2%. The jobs report showed the U.S. economy created 288,000 jobs in June, and that unemployment dipped to 6.1 percent, the lowest level in almost six years. The numbers confirm that the economy bounced back in the second quarter after a dismal start to the year. Anthony Chan, Chief Economist at Chase says while wages were up, he was hoping for a bigger bounce. SOUNDBITE: ANTHONY CHAN, CHIEF ECONOMIST, CHASE (ENGLISH) SPEAKING: "I would have like to see wages accelerating a bit further, consistent with the view of Janet Yellen that we need to see wages accelerating in order to give the consumer the werewithal to continue spending at a faster pace." But even with employment on the fast track, growth in the U.S. services sector slowed slightly in June according to the Institute for Supply Management. Also, the Commerce Department said the trade deficit narrowed slightly in May. In another attempt to take back the company he created, American Apparel's ousted CEO Dov Charney has handed his entire stake and voting rights to hedge fund Standard General, which is now negotiating with American Apparel. The company's stock rocketed higher on the latest developments. Lululemon's founder Chip Wilson is talking to private equity firms about a possible buyout. One potential stumbling block: the size of the premium needed over its $6 billion market valuation. Lululemon stock ended the day higher. And activist hedge fund Jana Partners revealed a nearly 10% stake in PetSmart, saying it plans to ask the pet retailer to look into a sale, which sent shares up sharply. In Europe, Central Bank President Mario Draghi said the ECB is ready to print more money in the future if needed, even after introducing a host of measures aimed at boosting inflation last month. Europeans markets ended the day higher.

Shares soar to records on jobs report

Thursday, Jul 03, 2014 - 02:18

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