S&P, Nasdaq Notch 2016 Closing Highs After Yellen Remarks

By The FedFOXBusiness

Doll: Jobs report fly in the Feds rate-hike ointment

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Doll: Jobs report fly in the Feds rate-hike ointment

Bob Doll, chief equity strategist at Nuveen Asset Management, said the weak May jobs report will not prevent the Fed from raising rates, and doesnt see an economic slowdown on the horizon.

U.S. equity markets capped the day off the lows of the session, but still moderately higher, on Monday after Federal Reserve Chief Janet Yellen said while there are certainly risks to the U.S. economy, the positives outweigh the negatives.

Her remarks helped send both the S&P 500 and the Nasdaq Composite to their highest closing levels for the year, while the S&P remains roughly 21 points behind its all-time high closing value.

On the session, the Dow Jones Industrial Average gained 113 points, or 0.64% to 17920. The S&P 500 gained 10 points, or 0.49% to 2109, while the Nasdaq Composite added 26 points, or 0.41% to 4968.

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The S&P 500 energy, materials and industrials sectors led the action, while telecom and utilities lagged. The 2% pick up in energy was helped by a 2.2% gain in U.S. crude oil prices. West Texas Intermediate closed the session at $49.75 a barrel, the highest settlement value since July 2015.  

During a policy speech at the World Affairs Council of Philadelphia midday Monday, Yellen called the May employment report, which showed a significant slowdown in job creation, “disappointing” and “concerning.” However, she said other data on the health of the economy showed signs of strength, and the central bank will continue to monitor incoming data as it heads into its June policy meeting next week.  

Bob Doll, chief equity strategist at Nuveen Asset Management, said the market’s continued upward momentum in the wake of Yellen’s remarks is a positive sign.


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