Stocks Rise on Strong Jobs Data

Dell, Wal-Mart Boost Sentiment

Stocks gained Friday, inspired by benign economic data and good news from Dell and Wal-Mart. The Dow Jones Industrial Average ended up 40.47 at 13668.11, its 26th record close of the year, putting it up 9.7% since the end of last year. The blue-chip index was lifted by a 3.9% jump in shares of Wal-Mart, which approved a new share-buyback plan. But the Dow's telecommunications stocks were a drag, with AT&T losing 2% and Verizon Communications dropping 1.2%. The S&P 500 was up 5.72 to 1536.34 -- its third consecutive record -- and is 8.3% higher on the year. It gained every day this week, and is up eight of the past nine weeks. The NASDAQ Composite Index gained 9.40 to 2613.92. It rose 2.2% this week, also advancing every day this week, and is up 8.2% on the year. Dell shares rallied 1.5% after the computer maker reported better-than-expected quarterly results and announced it would cut about 10% of its work force. The upside-surprise news from Dell helped other technology bellwethers, as well as the tech-heavy NASDAQ index. Dow component Intel rose 0.8%, and Micron Technology added 3.5%.

Friday, stocks surged in the first hour of trading, but retreated from those heights. In the early afternoon they were barely clinging to positive territory, but managed to work back up to end with gains on the major indexes of 0.3% or more.

In major market action:

Stocks advanced. On the New York Stock Exchange Friday, 2,205 stocks gained and 1,088 declined, on composite volume of 2.94 billion shares traded in stocks listed on the exchange.

Bonds slipped. The 10-year Treasury note fell 16/32, or $5.00 for every $1,000 invested, to 96-15/32, yielding 4.955%. The 30-year bond was down 24/32 to 95-7/32, yielding 5.062%.

The dollar rallied. The Euro was down to $1.3447 from $1.3456, while the dollar rose to 122.04 yen from 121.71 yen.

Economic News

May jobs growth unexpectedly strong - The number of new U.S. jobs climbed by an unexpectedly brisk 157,000 in May on a surge of hiring in service businesses while hiring in the factory sector continued to decline, Labor Department data showed.

Slower global growth means new risks: World Bank - Slower global economic growth has increased risks for developing countries, especially if the record levels of private capital that has flowed into these markets is reversed, the World Bank said.

Political News

BBC Gaza reporter says he's well in Web video - Kidnapped BBC Gaza correspondent Alan Johnston said he was in good health and being treated well in a video released, the first since militants abducted him in the Palestinian enclave over 11 weeks ago.

Top Bush aide Dan Bartlett resigns - Dan Bartlett, a key member of President George W. Bush's inner circle and an aide for him going back more than 13 years, announced he is resigning as White House counselor effective July 4.

Legal News

Apple to put YouTube on Apple TV - Apple Inc. said that it will put Google Inc's YouTube Internet video catalog on television through its Apple TV set-top box.

Cadbury to cut costs as drinks sale nears - Cadbury Schweppes is planning to move out of its expensive central London offices as part of a cost-cutting drive that will be announced on June 19, a source familiar with the matter said.

Circuit City plans more job cuts - Consumer electronics retailer Circuit City Stores Inc. plans another round of job cuts, affecting about 850 store managers and headquarters staff, the Wall Street Journal reported in its online edition.

Dell Reports Better-Than-Expected Profit - Dell also announced that it would lay off 10 percent of its work force over the next year in order to reduce costs.

Dow Jones Says It Will Consider Options for Sale - The decision represents an about-face for both the company and Rupert Murdoch�s bid and could end more than a century of family ownership.

Google acquires Web media distributor Feedburner - Google Inc. said it is acquiring Feedburner Inc, bolstering the Internet advertising leader's capacity to distribute both media and advertising to blogs via Web syndication technology.

Google Photos Stir a Debate Over Privacy - A new online feature of Google Maps called Street View is stirring up a debate over privacy concerns on the Web.

Legg Mason's chief administrative officer to quit - Money manager Legg Mason Inc. announced another high-profile change in its top ranks, saying chief administrative officer Timothy Scheve will leave to take the top job at another company.

Microsoft to offer improved tools to search books - Microsoft Corp. said it would offer improved capacity to search copyrighted books on the Internet as the company battles Google Inc. for advertising dollars from Web-based services.

Nokia unveils three new phones - Leading mobile phone maker Nokia said it would introduce three new phone models to its line-up, two of them mid-range and one at the higher end of the market.

Palm unveils compact portable computer - Palm Inc. introduced a compact portable computer to accompany its Treo smartphone, seeking to regain its competitive edge in the crowded high-end handheld device market.

RealPlayer to let users save YouTube, other video - RealNetworks said the newest version of its digital music player would allow users to save Internet video -- like those found on YouTube -- for viewing at a later time.

Tiffany quarterly profit rises on strong sales - Luxury jeweler Tiffany & Co. reported higher quarterly profit as strong sales in the United States and other markets that helped offset weakness in Japan.

Wachovia in Deal to Acquire A.G. Edwards - The deal will form the second-largest retail stock brokerage firm in the U.S. after Merrill Lynch.

m a r k e t n e w s :

Wal-Mart (WMT: Charts, News, Offers) gave investors something they haven't seen in some time: a reason to pour some money into its shares. The world's largest retailer, under pressure by investors to improve its sales, is trimming its store growth as it balances its traditional focus on low prices with a push to be a force for change in such areas as health care and the environment. Its shares rose almost 4 percent on the news. (Source: Yahoo! Finance) Full Story

m a r k e t a n a l y s i s :

At first glance, the boom in private- equity buyouts looks like a boon to traditional investors such as mutual funds. Demand from the private-equity crowd gets a lot of credit for the rise in stock prices this year. Every time the market starts to sag, along comes a new bid for one company or another, reinforcing the idea that stocks are a bargain. (Souce: Bloomberg) Full Story