Stocks were higher on Friday after a strong May jobs report and news late Thursday that the Senate passed the debt ceiling bill, clearing investor fears over both a US debt default and worries about a marked slowdown in the economy.
The S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) rose about 0.8% on Friday while the Nasdaq Composite was (^IXIC) was higher around 1%.
The US economy added 339,000 nonfarm payroll jobs last month while the unemployment rate rose to 3.7%, data from the Bureau of Labor Statistics showed Friday. This marks the 14th-straight month that job creation came in above what Wall Street economists had expected.
Economists had expected the report to show payrolls rose by 195,000 while the unemployment rate was expected to tick up to 3.5%.
Meanwhile, debt ceiling fears are diminishing among investors as the Senate voted to approve a bill that will raise the U.S. debt ceiling for two more years. Easing debt ceiling worries propelled stocks higher on Thursday, with all three of the major averages closing the first day of June in the green.
On the earnings front, athletic apparel brand Lululemon (LULU) posted better-than-expected results and boosted its full-year revenue guidance. Lululemon now expects full-year revenue in a range of $9.44 billion to $9.51 billion. Previous guidance had been for a range of $9.3 billion to $9.41 billion.
Shares of Lululemon soared nearly 15% on the news.
“LULU continues to exhibit strong momentum, driven by product innovation, investments in growth/demand creation, and the benefit of not being exposed to the wholesale channel,” Wedbush Securities analyst Tom Nikic wrote in a note to clients on Friday morning.
Josh is a reporter for Yahoo Finance.
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