Stock market live updates: Stocks up 2%, Apple new high, largest jobs gain ever

Stocks were set to end the week on a high note, as a record jobs report number pushed the major averages higher. The Dow, S&P 500 and Nasdaq Composite are all tracking for a third straight week of gains as a faster-than-expected economic recovery continues to fuel investor optimism.

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The U.S. leisure and hospitality jobs market rebounded sharply in May with an addition of 1.2 million jobs, by far the largest one-month increase in the sector’s history. The blowout numbers last month partially offset the worst month ever in April, when the sector lost 7.7 million jobs, or 47% of total positions.

The food service industry, a component of the broader hospitality sector, added back some 1.37 million chefs, waiters, cashiers and other staff in May. Health-care and retail also saw notable gains in May as more U.S. states began to allow businesses to reopen. – Franck

The VanEck Vectors Semiconductor ETF (SMH), which tracks the biggest 25 U.S. chipmakers, hit its highest level ever, going back to its inception in 2000. Its previous record was hit on February 14. Friday’s gains were led by Micron, Broadcom and NXP Semi, which all jumped 5% or more. The ETF is up 9% this week, on pace for its best week since April 9 when it gained 10.56%. – Li, Francolla

Shares of Apple rose to a new all-time intraday high of $328 on Friday amid a large-scale market rally. The stock’s prior all-time high was from January 29. Shares of the tech name have rallied 11% this year. – Stevens

Vice President Mike Pence told CNBC on Friday that the discussions about additional pandemic aid proposals will continue even after a shockingly strong jobs report for May fueled optimism the economy is picking up faster than expected. “Those discussions are ongoing,” Pence said on CNBC’s “Squawk on the Street.” “We’re going to work in good faith to put the interests of the American families and American businesses first,” Pence said. “But what’s absolutely essential about any additional recovery package is that we have the kind of pro-growth policies that President Trump has been advancing,” the vice president added. – Li

• Rosenblatt initiated Qualcomm as buy.
• Goldman Sachs initiated UnitedHealth and Humana as buy.
• Raymond James downgraded American to underperform from market perform.
• Credit Suisse raised its price target on Apple to $295 from $260.
• BMO downgraded eBay to market perform from outperform.
• Susquehanna upgraded Kontoor Brands to positive from neutral.
• Piper Sandler named Broadcom as a top pick.
• Evercore ISI upgraded Toll Brothers to outperform from in-line.

CNBC PRO subscribers read more here. – Bloom

With Friday’s jump higher, the S&P 500 is now down just 1.6% for the year. The Nasdaq Composite is already positive for the year – registering a gain of more than 8% fueled by tech’s outperformance – while the 30-stock Dow is about 5% lower for the year. All three averages are also approaching their February all-time high levels. The S&P and Dow are 6.5% and 8.8% below their records, respectively, while the Nasdaq Composite is about 1% away from its all-time high. – Stevens

Stocks soared at the start of trading on Friday, after data showed that employment rose by a record 2.5 million in May. The Dow Jones Industrial Average jumped more than 700 points for a gain of 2.7%. The S&P 500 rose 1.9%, while the Nasdaq was the relative underperformer, advancing just 0.9%. Industries sensitive to the economy’s reopening including retail, banks and airlines, led markets higher, while some of the stay-at-home trades, such as Netflix and Amazon, took a breather. With Friday’s gain, the S&P 500 is now just 6.5% below its February all-time high. – Stevens

Bank stocks soared on Friday after the better-than-expected May jobs report fueled optimism about a quick economic recovery. The Financial Select Sector SPDR Fund (XLF), which tracks the financial sector of the S&P 500, jumped 5% in premarket trading on Friday. JPMorgan soared about 7%, while Citigroup and Bank of America gained 8.5% each. “The data gives us more confidence in either a ‘U’ or ‘V’ shaped recovery,” Mike Mayo, bank equity strategist at Wells Fargo, said in a note on Friday. “This comes before the Fed stress test in the next couple weeks which, to us, would make it difficult for them to impose across the board forced dividend cuts, which has been one overhang,” Mayo said. Shares of banks have been decimated during the pandemic as lending activity and margins dried up. — Li

Shares of retail stocks moved higher in premarket trading on Friday as better-than-expected jobs data fueled optimism about economic recovery from the coronavirus downturn. Nordstrom leaped more than 12% in premarket trading, after gaining more than 9% on Thursday. Kohl’s ripped 12% higher after registering a 4% gain on Thursday. -Fitzgerald

Nasdaq-100 futures were flat during premarket trading on Friday amid a market rotation that’s seen investors sell stay-at-home and pandemic names in favor of re-opening plays. Amazon and Netflix, both of which rose to new all-time highs in May, moved lower on Friday, with Gilead also down about 1%. Meanwhile airline and retail stocks jumped after data showed that employment rose by 2.5 million in May, the largest on record. -Stevens

Airline stocks continued to move higher as better-than-expected employment numbers fueled optimism about the economic recovery. Shares of American Airlines rose nearly 28% in premarket trading, while United Airlines jumped more than 22%. Those stocks also rose 41% and 16%, respectively, on Thursday. –Pound

Nonfarm payrolls rose by 2.5 million in May, driving the unemployment rate down to 13.3%, according to the Bureau of Labor Statistics. Economists surveyed by Dow Jones expected payrolls to decline by 8.3 million and the unemployment rate to rise to 19.5% from 14.7% in April.

The jobs gain was the biggest on record, but the unemployment rate was still higher than it was during the financial crisis more than a decade ago. The labor force participation rate, which measures those working and those looking for work, rose by 0.6 percentage points to 60.8% in May. The measure had fallen by 2.5 percentage points in April. –Pound

The unemployment rate in May was 13.3%, beating estimates of 19.5%, according to the Labor Department. Dow futures rose higher following the report and are now up roughly 500 points. –Pound

Bond yields continue their rapid rise, with the benchmark 10-year yield touching 0.89%, its highest level since March 24. Treasury yields, which move opposite price, have been rising on a better economic view, but got a big kick up when the ADP report Wednesday showed less than 3 million jobs were lost in May. As the market awaits the government employment report this morning, bond yields are in sync with the move higher in stocks that benefit from the economic reopening. Some bond traders say there’s a whisper number for the jobs report that is about 3 million better than the 8.3 million expected by economists surveyed by Dow Jones. The trade toward risk is global and got a boost from the European Central Bank’s announcement of expanded stimulus Thursday. — Domm

Shares of the major U.S. airlines are jumping in premarket trading again on Friday as investors pile into the beaten-down industry on hopes of recovery as the economy reopens. American Airlines surged 20% in premarket trading after its 41% surge on Thursday. Delta Air Lines and United Airlines rose 11% and 14%, respectively. Southwest ticked up about 5%. The US Global Jets ETF is up 27% this week, and has gained more than 10% in premarket trading. — Fitzgerald

Shares of casinos climbed in premarket trading Friday as Las Vegas began opening gambling locations Thursday during phase two of Nevada’s reopening process. MGM Resorts jumped 3.5% in premarket, while Wynn Resorts and Las Vegas Sands rose 2.7% and 3.1%, respectively. These stocks are set to close the week with solid gains on reopening optimism. Through Thursday’s close, MGM soared more than 26%, while Wynn and Las Vegas Sands gained 14% and 9%, respectively. — Li

Futures contracts tied to the major U.S. stock indexes suggested another rally to finish an otherwise robust week on Wall Street. Dow futures rose 350 points, indicating an opening gain of 340 points or 1.3%. S&P 500 futures implied a 0.8% climb while Nasdaq-100 futures suggested an advance of 0.35%. — Franck

Unemployment likely hit its worst level since the Great Depression era in May, with the only question being just how bad things got. Economists surveyed by Dow Jones expect nonfarm payrolls to show a decline of 8.333 million for the month and an unemployment rate of 19.5% that would be the worst since the 1930s. The principle question going forward is whether the month marked a bottom for a self-induced economic downturn from efforts to stem the coronavirus pandemic. — Cox

Investor optimism over the economy’s reopening continued to fuel stocks this week, and the major averages are on track for their third straight week of gains. If the S&P 500 and Dow Jones Industrial Average finish higher for the week they will both notch their first three-week winning streak since December. It’s the Nasdaq Composite’s longest weekly winning streak since January.

On Thursday, the Nasdaq-100 rose to an all-time intraday high, thereby erasing all of its coronavirus-induced losses, before reversing gains and closing modestly lower. Still, it was the first index to reach a new record since the pandemic began. Tech shares have continued to lead the market higher, and the Nasdaq Composite is now roughly 2% below its record high. The S&P 500 and Dow are 8.3% and 11.1% below their highs, respectively. Elsewhere in the market, the NYSE Arca Airline Index has gained nearly 30% this week putting it on track for its best week since 2008, while the SPDR S&P Bank ETF (KBE) is pacing for its best week since April after jumping more than 10%. — Stevens

— CNBC’s Pippa Stevens, Jesse Pound, Jeff Cox, Patti Domm and Michael Bloom contributed reporting.

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