Stocks Jump on Jobs Report

The S&P 500 hit its third consecutive record close Friday after government reports showed strong jobs growth and contained inflation.

May jobs growth of 157,000 was stronger than expected, and other reports showed strengthening manufacturing and tame core inflation, a bullish trifecta that sent the major indexes to solid gains on the day.

The Commerce Department’s inflation report marked the first time in more than a year that core inflation fell back into the Federal Reserve’s comfort zone. Buyout fever also contributed to gains, as Dow Jones said it is willing to consider bids from News Corp. and others.

Dell ended the day 1.5% higher on better than expected results and layoff plans, while Brocade fell on weak guidance and HBA plans.

Wind River edged higher on its results, while OmniVision fell on its earnings report.

Harris lost ground on an acquisition and lowered guidance.

The Nasdaq rose 9 to 2613, the S&P 500 gained 5 to 1536, and the Dow 40 to 13,667. Volume declined to 2.93 billion shares on the NYSE, and 1.93 billion on the Nasdaq. Advancing issues led by a 21-10 margin on the NYSE, and 19-11 on the Nasdaq. Upside volume was 73% on the NYSE, and 63% on the Nasdaq. New highs-new lows were 392-37 on the NYSE, and 249-92 on the Nasdaq.

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