U.S. stocks surged Friday, finishing just short of record highs, as investors responded enthusiastically to a strong June job market report.
The buying accelerated throughout the day after the Labor Department said U.S. employers added 287,000 jobs last month. That was far more than analysts expected, and after weak reports from April and May, it suggests the economy and job market haven’t run out of steam.
“It was a strong report and it put to bed worries that we were seeing the job market sputter,” said Kate Warne, investment strategist for Edward Jones.
Mining and materials companies, which would stand to benefit more than other industries from an accelerating economy, took the biggest gains. Machinery makers also jumped. Only eight stocks on the Standard & Poor’s 500 finished lower.
The Dow Jones industrial average surged 250.86 points, or 1.4 percent, to 18,146.74. The S&P 500 rose 32 points, or 1.5 percent, to 2,129.90. The Nasdaq composite advanced 79.95 points, or 1.6 percent, to 4,956.76.
The government said the unemployment rate rose slightly as more people looked for jobs. There was also evidence wages were rising faster. The April and May reports worried investors, in part because they came after the economy grew just 1.1 percent over the first three months of 2016. The U.S. economy has been growing for more than six years and investors are wary that that streak could end.
The S&P 500 is less than a point away from the record high it set in May 2015. The Dow, too, is close to a record.
Among material and industrial companies, paint and coatings maker PPG Industries added $3.29, or 3.2 percent, to $106.32 and aluminum producer Alcoa picked up 48 cents, or 5.2 percent, to $9.82. Machinery maker Caterpillar climbed $2.32, or 3.1 percent, to $77.37 and aerospace company Boeing gained $2.92, or 2.3 percent, to $130.09.
Retailer Gap climbed $1.07, or 4.9 percent, to $22.70. The stock is down 8 percent this year.
Polycom accepted an offer from Siris Capital worth $12.50 per share, or $1.7 billion. Polycom accepted an offer from Mitel Networks in April. Polycom stock gained $1.38, or 12.7 percent, to $12.25. Mitel will get a $60 million payment from Polycom.
Benchmark U.S. crude added 27 cents to $45.41 a barrel in New York. Brent crude, a standard for international oil prices, picked up 36 cents to 46.76 a barrel in London.
