Stocks rallied even after the August jobs report showed that the economy added fewer jobs than expected.
First, the scoreboard:
Dow: 18,491.96, +72.66, (0.39%) S&P 500: 2,179.98, +9.12, (0.42%) Nasdaq: 5,249.90, +22.69, (0.43%) WTI crude oil: $44.44, $1.28, (+2.97%) 10-year yield: 1.602%, +0.032
The US economy added 151,000 jobs last month and the unemployment rate was unchanged at 4.9%. Economists had forecast a gain by 180,000 with a 4.8% rate. Average hourly earnings rose 0.1% month-on-month, and 2.4% year-on-year, less than expected. Richmond Federal Reserve President Jeffrey Lacker said on Friday that the fed funds rate should be “significantly higher than it is now.” The US oil rig count rose by one to 407 this week, according to driller Baker Hughes. The count resumed its climb after one flat week, and has gained in nine out of the last ten.The gas-rig count rose by seven to 88, taking the combined tally, which also includes two miscellaneous rigs, up by eight to 497. Mylan shares tanked 4% after lawmakers accused the company of overcharging Medicaid for the EpiPen. Sen. Ron Wyden of Oregon and Rep. Frank Pallone of New Jersey said they sent a letter asking about a possible misclassification of the EpiPen under the Medicaid program. Mylan’s stock has fallen by 17% since the debate around the EpiPen’s price began to heat up on August 22. Factory orders rose 1.9% in July, in line with expectations, according to the Commerce Department. The preliminary report on durable goods orders showed that purchases of stuff built to last rose 4.4%, the first increase in three months. Capital goods orders for non-defence items excluding aircraft, or so-called core durable goods, were reported at 1.5%, revised from 1.6%.