UPDATE: U.S. stocks set for weekly gains; Dow, S&P 500 hit record
By Carla Mozee and Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The Dow Jones Industrial Average topped 17,000 for the first time and the S&P 500 hit an intraday record on a jobs report that was far stronger than expected but nonetheless isn't shifting expectations about when the Federal Reserve will start raising interest rates.
The main benchmarks were on track to finish the holiday-shortened week with solid gains, while the Nasdaq Composite eyed its third weekly gain in a row. Trading is expected to get thinner as the day progresses. Both the New York Stock Exchange and Nasdaq will close early at 1 p.m. Eastern Time for the July 4th holiday.
The Dow Jones Industrial Average (DJI) added 76 points, or 0.4%, to 17,052.85. The S&P 500 (SPX) rose 7 points, or 0.4%, to 1,981.693. The Nasdaq Composite (RIXF) added 18 points, or 0.4%, to 4,475.92.
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Investors clearly welcomed a strong employment data, even as bond investors reassessed how a strengthening economy may impact the Federal Reserve's policy views.
Quincy Krosby, market strategist at Prudential Financial said both the headline numbers and the details of the jobs report were favorable for stock-market investors.
"While the slack in the labor market is tightening, wage growth is still contained. This means that companies are still able to keep their profit margins. And as the ISM numbers indicated, services-sector growth is slowing slightly. Markets would like to see economic growth without a jump in inflation and that is a hard balance to keep," she said.