Labor Report Delivers Mixed Results, iWatch Coming Soon: Market Recap

U.S. jobs data released today eased investors’ worry that the Federal Reserve would be ending its stimulus program in the near future. The S&P 500 ended its two week losing streak on Friday, gaining 20.82 points, or 1.28 percent, to end at 1,643.38.

S&P 500 Index Chart - Yahoo! Finance

Oil: -0.35% to $94.43 per barrel  Gold: -2.08% to $1,386.30 an ounce  U.S. 10-Year: +0.099 to 2.175%

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Labor’s Mixed Results: Jobs Spiked But Unemployment Rose: The U.S. Department of Labor released its monthly employment situation report on Friday, which showed that United States employers added a better-than-expected 175,000 jobs in May. This announcement further supported the thesis that the labor market has been remarkable resilient to the uneven gains made by the economy so far this year. However, as with all economic data recently, the report contained both good and bad news. Despite the 175,000-job gain, the unemployment rate rose back up to 7.6 percent from 7.5 percent, an unexpected jump… (Read more.)

Is This Stock Market Cheap?:  In times of critical importance, the conventional P/E ratio often lags the index to the point of being useless as a value indicator. “Why the lag?” you may wonder. “How can the P/E be at a record high after the price has fallen so far?” The explanation is simple… (Read more.)

Here’s How Fiscal Policy is Slowing Down the Economy: Brian Lucking and Daniel Wilson, a research associate and a senior economist in the Economic Research Department of the Federal Reserve Bank of San Francisco, respectively, published a report on June 3 that argued about one basic idea: federal fiscal policy has been a modest headwind to economic growth during the recovery, but that headwind will blow more severely over the next three years… (Read more.)

Here’s your cheat sheet to today’s top stocks stories:

Facebook (NASDAQ:FB) is closing a cycle of expansive experimentation in regards to advertising. On Thursday, the social network reported that it will be closing down more than half of its 27 ad units over the next six months as part of an effort to “simplify our offerings.” (Read more.)

TiVo (NASDAQ:TIVO) has settled a patent dispute over digital video-recording technology with Google’s (NASDAQ:GOOG) Motorola Mobility unit, Cisco Systems Inc. (NASDAQ:CSCO), and Time Warner Cable (NYSE:TWC) for $490 million. Analysts had expected the pay-out from Google, Cisco, and Time Warner to be much higher… (Read more.)

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

Pepsi (NYSE:PEP) remains confident it can continue to thrive in the China’s market for beverages and snacks despite the country’s slow economic growth. As the company suffers slower gains in developed markets like the U.S. and Europe, Pepsi is counting on China to help it rebound… (Read more.)

AT&T (NYSE:T) has said that its second-quarter TV, internet, and mobile phone subscriber growth has improved from a year earlier. The biggest mobile phone carrier in the U.S. is expecting to report 500,000 new mobile-phone subscriptions for the quarter, the company said in a report released Thursday… (Read more.)

Apple (NASDAQ:AAPL) is expected to debut the long-awaited iWatch before the year is out, according to some analysts. One in particular is convinced that Apple has already primed its supply chain and is on the cusp of initiating production for this much-anticipated product. Citigroup analyst Glen Yeung wrote in a note to investors via CNET that, “We believe iWatch is in a greater state of readiness, with the supply chain now waiting for the production go-ahead from Apple…” (Read more.)

Wal-Mart (NYSE:WMT) stocks doing well today despite the recent bribery scandal. The biggest news emerging from the company’s annual shareholder meeting on Friday was that the board approved a new $15 billion stock repurchase program, the first in two years. Such buybacks reduce the number of shares held by the public, and the smaller float means that even if profits remain the same, the earnings per share increases. For Wal-Mart, boosting that key metric is especially important because its business in the United States is only just recovering from a two-year slump that was prompted by mistakes in pricing and merchandising… (Read more.)

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