Stocks Ended Sharply High As Payrolls Jumped
U.S. stocks rallied to its highest level since early May on Friday, ending the week on a high note, after the July jobs report exceeded expectations. The Dow Jones Industrial Average rose 217.29 points, or 1.69%, to 13,096.17, up 0.2% for the week. The S&P 500 index added 25.99 points, or 1.90%, to 1,390.99, leaving it 0.4% higher from last week’s close. The Nasdaq Composite climbed 58.13 points, or 2.00%, to 2,967.90, a weekly rise of 0.3%.
Zipcar Inc. shares tumbled to an all-time low Friday after the car-sharing network reported lower-than-expected revenue in the second quarter and cut its annual estimates. For the full year, Zipcar now says its revenue will be between $272 million to $278 million, down from its previous estimate of $290 million to $296 million. Analysts were projecting $290.9 million on average.
American International Group Inc. said Friday that it plans to buy back a large amount of its shares from the government. The Treasury Department currently owns 61% of AIG shares, down from the peak of 92%. The global insurance company was effectively nationalized by the government, for a total cost of $161 billion, at the peak of the financial crisis in the fall of 2008.
U.S. Securities and Exchange Commission Chairman Mary Schapiro said Friday said that the erroneous trades leading to a $440 million loss at Knight Capital Group Inc. were “unacceptable” and the SEC is investigating whether the firm followed a requirement to check its systems thoroughly before using them in the markets.
Crude-oil futures rallied nearly 5% Friday, spurred by optimism following a positive U.S. jobs report and as Wall Street traded sharply higher and the dollar lost some ground. Crude for September delivery rose $4.27, or 4.9%, to settle at $91.40 a barrel on the New York Mercantile Exchange.