June 6 - Summary: Friday's jobs report confirms economic rebound; Bank of America nears settlement in mortgage-backed securities probe; Hertz shares plunge after it reveals accounting errors. Lily Jamali reports.
Wall Street's winning streak continues, as the S&P 500 sets a record for the eighth time in the last 10 sessions. The Dow hit a record for the second day in a row. The Nasdaq also finished higher. For the week, the Dow was up 1.2%, the Nasdaq 1.9% The headliner: the closely-watched jobs report, which showed U.S. employment in May returning to its pre-recession peak. The pickup in hiring, coupled with recent data ranging from auto sales to factory activity, confirm the economy is in rebound mode. Jason Furman, chairman of the Council of Economic Advisers, said one sector showed particular progress. SOUNDBITE: JASON FURMAN, CHAIRMAN, COUNCIL OF ECONOMIC ADVISERS (ENGLISH) SAYING: "Manufacturing was notable - it tied the record for the highest average hourly work in manufacturing. When you see people working those kinds of hours, that tells you you have a lot of demand for those products. You may start adding jobs at an even faster pace in the future." The unemployment rate remained at 6.3%, the lowest level in five and a half years. Jeff Saut of Raymond James says investors should be encouraged by the report. SOUNDBITE: JEFF SAUT, CHIEF INVESTMENT STRATEGIST, RAYMOND JAMES FINANCIAL (ENGLISH) SAYING: "Jobs are coming in a little bit stronger than the expectations for the past number of months. I think that's a pretty good sign that things are improving and that's really all the equity markets care about. They don't care about the absolutes of good or bad. All the equity markets care about is are things getting better or things getting worse? And to me, things are getting better." Federal Reserve governor Jerome Powell confirming the Fed is unlikely to raise rates for a "significant time" after it ends its bond purchasing program, mid-2015 at the earliest if the economy maintains its current pace. In company news, a possible settlement between Bank of America and the U.S. Department of Justice appears to be in the works. According to reports, Bo A could end up paying more than $12 billion to settle allegations it misled buyers of mortgage backed securities. Some of that cash may go toward consumer relief. Shares were the most actively traded during the day but ended slightly higher. Shares of Hertz Global Holdings, plunging on news that it will need to correct accounting mistakes running as far back as 2011. The auto rental firm also warned investors that first-quarter results would disappoint. Cloud computing company Rally Software, failing to rally. Shares fell 30% Friday after the company said revenue for both the second quarter and the year will fall short of expectations. Across the pond, major markets throughout Europe all ended the day higher.