This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stocks Jump on High Volatility as Investors Await Payrolls Report

NEW YORK ( TheStreet) -- U.S. equity markets jumped Thursday afternoon on expectations that a jobs report tomorrow will bolster the Federal Reserve's position to maintain its bond-buying stimulus program.

Furthermore, the dollar fell sharply against a basket of major world currencies, fuelling positive sentiment for U.S. equities, as a weak dollar may translate into higher profits when they are repatriated to the U.S.

The S&P 500 gained 0.9% to close at 1,622.56 as volatility spiked.

"We're trading not on the fundamentals, but in anticipation as to what the payrolls number's going to be and whether or not we need more policy accommodation," said John Lynch, a Charlotte, North Carolina-based regional chief investment officer at Wells Fargo Private Bank, which oversees $170 billion in assets.

The Labor Department is scheduled to publish its widely-followed government non-farm payrolls report. The department on Thursday reported initial claims of 346,000 in the week ended June 1, a decrease of 11,000 from the previous week's upwardly revised figure of 357,000 but slightly greater than the average analyst estimate of 345,000. The Challenger employment report said that monthly job cuts declined for the third straight month in May.

The Dow Jones Industrial Average added 0.5% to 15,040.62 while the Nasdaq advanced 0.7% to 3,424.05.

SodaStream International (SODA) gained 2.7% to $71.24 after Israel's Calcalist financial newspaper reported that PepsiCo (PEP) is negotiating to buy SodaStream for more than $2 billion. The report said PepsiCo could be willing to pay as much as $95 a share for SodaStream, which makes at-home carbonation systems. SodaStream went public in 2010.

PulteGroup, Inc. (PHM) rose more than 4.7% to $21.10 after housing prices rose 12.1% in April, the largest gain in home prices since February of 2006. Pulte Group also released costs for their transition from Bloomfield Hills, Michigan to Atlanta, Georgia, citing a better economic environment than Metro Detroit.

Periggo Company (PRGO) gained 3.9% to close at $117.52. Perrigo benefitted from a New York Court of Appeals ruling allowing girls of any age to buy generic morning after pills without a prescription. While still awaiting a federal court decision, Perrigo was one of two companies to receive the new business.

J.M. Smucker (SJM - Get Report) slipped 3.9% to $98.38 after the food company reported quarterly revenue that fell 1% to $1.34 billion, missing the average analyst estimate of $1.35 billion, as sales took a hit from price cutting.

/> Netflix (NFLX) fell 2.56% to $217.74 after coming into competition in foreign markets. Netflix found it hard to compete with Swedish Modern Times Group AB's (MTGBF) Viaplay, which offers live sports in addition to streamed shows and movies. Not only was the American company beat out in Sweden, it faced opposition in Eastern Europe as well.

Written by Robert Arenella in New York

>To contact the writer of this article, click here: Andrea Tse.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GM $36.42 0.14%
SJM $121.78 -1.20%
REGN $546.39 -3.00%
THC $33.37 -1.80%
AAPL $118.85 0.88%


Chart of I:DJI
DOW 17,776.91 -21.58 -0.12%
S&P 500 2,087.10 -3.01 -0.14%
NASDAQ 5,118.8290 -8.6960 -0.17%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs