Stocks Rise on Jobs Report

Wall Street traders on Friday cheered a monthly jobs report that showed strong growth and tame inflation, but a sell-off in the bond market limited gains.

June non-farm jobs growth of 132,000 and wage growth of 0.3% was in line with economists’ estimates, but the bond market sold off on the news, with yields approaching their highest levels in a year.

Still, the news was good enough to send the Nasdaq to its third straight 6 1/2-year high.

Microsoft shares slipped on news of a $1 billion Xbox warranty charge against earnings. The stock pared its losses late in the day on news that the company’s acquisition of aQuantive had cleared an antitrust hurdle.

Transmeta soared 34% on a $7.5 million investment from AMD .

Parametric plunged 20% on a warning, while Applied Micro shares jumped 15% on cost-cutting plans.

The Nasdaq climbed 10 to 2666, the S&P 500 added 5 to 1530, and the Dow climbed 45 to 13,611. Volume declined to 2.4 billion shares on the NYSE, and 1.66 billion on the Nasdaq. Advancing issues led by a 19-12 margin on the NYSE, and 17-12 on the Nasdaq. Upside volume was 72% on the NYSE, and 62% on the Nasdaq. New highs-new lows were 259-53 on the NYSE, and 200-59 on the Nasdaq.

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