NEW YORK, May 6 (Reuters) - Shares of small-cap and mid-cap companies rose on Friday after a surprisingly large jump in U.S. payrolls boosted investor confidence in the economic recovery.
The rally was broad with industrials, materials and energy stocks among the top gainers after a sell-off in the previous session on concerns that global industrial demand is on a downward spiral.
U.S. employment increased more than expected in April as private companies created jobs at the fastest pace in five years, pointing to underlying strength in the economy, even though the jobless rate rose to 9.0 percent. For details, see [ID:nOAT004799]
“Our concern is that between now and the July reporting season, the market will be susceptible to heightened volatility and downward pressure on prices. However, we believe any weakness will prove transitory, in other words, a spring break,” said Jonathan Golub, strategist at UBS in New York.
Shares of oilfield services company Tetra Technologies Inc TTI.N rose 13 percent to $14.30 after posting an estimate-topping quarterly profit and forecasting a strong year ahead. [ID:nL3E7G62VX]
Shares of Limelight Networks Inc LLNW.O rose 3.5 percent to $6.60 after the company posted a lower-than-expected quarterly loss on Thursday. [ID:nASA02308]
But shares of Obagi Medical Products Inc OMPI.O fell 24 percent to $9.81 a day after the specialty pharmaceutical company said Texas health authorities have banned the shipment of a bleaching ingredient used in some of its skin care products. In 2006, the U.S. Food and Drug Administration proposed a ban on over-the-counter sales of hydroquinone products as studies in rodents showed that the ingredient may cause cancer. [ID:nL3E7G62R7] (Reporting by Angela Moon; Editing by Padraic Cassidy)
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