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Wall Street cheers jobs growth

Friday, May 08, 2015 - 01:57

Stocks finished the week in rally mode after a report showed the jobless rate near a seven-year low. Bobbi Rebell reports.

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The sharp rebound in U.S. job gains last month fueled a broad-based rally on Wall Street. Stocks recouped losses earlier this week that were driven by weak economic data and Fed chair Janet Yellen's concern over high equity valuations. For the week though, the major U.S. indexes closed mixed. The U.S. added 223,000 jobs in April, a sign of a spring rebound for the economy. The unemployment rate inched down to 5.4 percent. Both were in line with expectations. Economist John Silvia liked what he saw in the employment report. SOUNDBITE: JOHN SILVIA, CHIEF ECONOMIST, WELLS FARGO (ENGLISH) SAYING: "It's a pretty solid report. It's consistent with what we've seen over the last three to six months. There were broad-based gains in the private sector services area." Forty five billion dollars? No way, says Syngenta. The Swiss agrochemicals giant rejected Monsanto's big bid, saying it undervalues the company, Shares of both companies rose. So did shares of McDonald's. The restaurant chain's global sales fell less than expected last month. Europe performed well. Fellow Dow component Microsoft helped drive the Dow higher. Sources told Reuters the software giant is not considering making a bid for the cloud computing company, Salesforce.com. Microsoft's rival, AOL, vaulted higher. Strong ad sales for the owner of the Huffington Post news site boosted quarterly revenue. Another splashy restaurant debut: Bojangles shares skyrocketed as much as 47 percent, valuing the chicken-and-biscuits chain at nearly $1 billion. Shake Shack has risen 44 percent since its January IPO. Monster Beverage a big loser on the Nasdaq and S&P 500. Goldman Sachs cut the energy drinks maker's shares to "neutral" from "buy" on its conviction buy list. It says Monster is losing market share to Red Bull. Joining Monster on the Nasdaq losers list is Nvidia. The strong dollar and a drop in PC sales drove the chip maker to warn of weak revenue. Across the Atlantic, stocks also staged a bigger rally. Sparking it: the UK election win by the pro-business Conservative Party over Labour.

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Wall Street cheers jobs growth

Friday, May 08, 2015 - 01:57