Payroll Gains Lift Indexes by 1% in New York, European Markets Surge

Nichole Harper
08 May, 2015
New York City

Stocks on Wall Street jumped more than 1% after April jobless rate fell to 5.4% and net monthly new jobs increased by 223,000 from revised 85,000 in March. Indexes in Europe jumped also after Prime Minister David Cameron led Conservative Party won a slim but outright majority in the U.K. elections.

[R]1:05 PM – Stocks on Wall Street jumped more than 1% after April jobless rate declined to 5.4% and net monthly new jobs increased by 223,000 after edging up only 85,000 in March. Indexes in Europe jumped also after Prime Minister David Cameron led Conservative Party won a slim but outright majority in the U.K. Parliamentary election.[/R]

Market indexes on Wall Street soared more than 1% after April jobs report showed healthy net gains and jobless rate declined to 5.4%.

Indexes across Europe also surged nearly 2% after the U.K. parliamentary election handed a slim but a clear majority to David Cameron led Conservative Party easing worries of a coalition government.

U.S. non-farm payroll employment in April rose 223,000 and the unemployment rate was declined to 5.4% from 5.5% in March, the Department of Labor said.

March net job gains were revised down to 85,000 from 126,000 and 266,000 jobs in February.

March wholesale sales fell 0.2% to $441.6 billion from the revised February sales and declined 4% from a year ago month.

Inventories in March rose 0.1% to $574.5 billion from the revised February data and soared 5.1% from a year ago, the Department of Commerce reported.

On Wall Street, Tollbooth Strategy Index climbed 1.4% or 143.77 to 10,771.94.

S&P 500 index jumped 27.54 or 1.3% to 2,115.52 and the Nasdaq Composite Index increased 62.04 or 1.3% to 5,007.19.

Crude oil in New York gained 63 cents to $59.57 a barrel and gold advanced $7 to $1,189.20 an ounce.

U.S. Movers

AOL, Inc ((AOL)) surged 11.3% or $4.44 to $43.83 after the online consumer products and services said total revenues in the first-quarter ending in March climbed 7.2% to $625.1 million form a year ago period.

Net income in the quarter plunged 24.7% to $7 million or 9 cents a diluted share compared to $9.3 million or 11 cents from the same quarter last year.

McDonald''s Corporation ((MCD)) gained 1.9% or $1.84 to $98.62 after the fast food restaurant network operator said domestic comparable sales in April dropped 2.3% but comparable sales in Europe rose 1% and comparable sales in Asia, Pacific, Middle East and Africa declined 3.8%.

McDonald''s reported global comparable sales in the month decreased 0.6% and system-wide sales plunged 8.8%.

European Markets

Market indexes across Europe advanced and indexes in London soared after conservative party won a slim majority in parliamentary election defying the predictions of hung election.

The seasonally adjusted U.K. trade deficit in goods and services narrowed to £2.8 billion in March from £3.3 billion in February, the Office of the National Statistics said.

In London trading, FTSE 100 index climbed 2.1% or 144.68 to 7,031.63 and in Frankfurt the DAX index soared 2.3% or 262.23 to 11,671.76.

In Paris, CAC 40 index jumped 1.6% or 78.24 to 5,045.46.

BG Group Plc increased 1.1% to 1,187 pence after the U.K.-based natural gas and oil producer reported revenues in the first-quarter ending in March plunged 21% to $3.99 billion from $5.06 billion in a year ago period.

Net income in the quarter tumbled 51% from a year ago to $565 million compared to $1.15 billion and earnings per share dropped to 16.6 cents from 33.8 cents.

Syngenta AG surged 22.9% to 409.30 Swiss francs after the Switzerland-based agriculture products maker rejected a $45 billion takeover offer or 449 franc per share from the U.S.-based Monsanto Company as the “unsolicited proposal.”

The agro-chemicals maker said the Monsato offer fundamentally “undervalues the company.”

Asian Markets

Shares in Tokyo struggled to advance on mixed earnings report and weak international trade data from China. Toyota annual net soared 19% on 6% increase in sales.

Fast Retailing April sales surged 20%. Mitsui & Co annual net plunged 13%. Olympus net in the fiscal year swung to a loss.

Market indexes in Tokyo struggled to advance on the lack of economic news and weak international back drop and mixed corporate earnings.

The Nikkei 225 Stock Average gained 87.20 or 0.5% to 19,379.19 and the broader Topix index rise 13.12 to 1,587.76.

For the truncated week, Nikkei declined 3.2%.

The yen closed at 120 against a dollar.

Market indexes rebounded sharply after falling to a six-month low after traders covered short positions, oil declined 3% and rupee rebounded from a 20-month low.

Rupee gained 46 paisa 63.95 after falling to 64.23 on Thursday.

The Sensex Index climbed 506.28 or 1.9% to close at 27,105.39. The CNX Nifty advanced 134.20 or 1.7% to 8,191.50.

For the week, Sensex Index rose 0.3% and CNX Nifty increased 0.1%.

Markets also took a positive tone after finance minister Arun Jaitley appointed a panel decide on the contentious issue of Minimum Alternative Tax regime.

Foreign investors have been selling stocks in Japan and in India and in the last three weeks of trading lowered exposure to stocks in Mumbai by nearly $2 billion or ₹13,000 crore.

Market indexes in Mumbai have struggled in the last week and latest quarterly earnings from Punjab National Bank, Hero MotoCorp and Titan were lower than expected.

Hero MotoCorp Limited slipped 2.2% to ₹2,301.55 after the largest motorcycle maker said net in the fourth-quarter declined 14.1% to ₹476.53 crore.

Total revenues in the quarter rose 4.3% to ₹6,793.87 crore.

Hindustan Unilever Limited jumped 3.3% to ₹894.60 after the personal products maker said net in the fourth-quarter climbed 16.7% to ₹1,018.08 crore.

Total revenues in the quarter jumped 7.3% to ₹7,774.04 crore.