Today: Stocks climbed after a federal labor report showed that employers added 195,000 jobs for a second month, exceeding analysts' expectations. Meanwhile the yield on 10-year Treasuries rose to the highest level in almost two years on expectations the Federal Reserve will start trimming $85 billion in monthly bond purchases in September.
The Lead: Wall Street optimistic after positive job growth
Good news on the jobs front pushed the Dow Jones Industrial Average back above the 15,000 level Friday.
The Labor Department reported Friday that 195,000 jobs were added in June, surpassing analysts' expectations. The report also increased the number of jobs added in April and May by 70,000, showing a trend of more sustained job growth that is hoped to continue through the rest of the year. The jobless rate remained the same at 7.6 percent, a sign that more long-term unemployed are applying for jobs again and being counted in the federal survey.
The S&P 500 and the Nasdaq were also strongly higher, as was the SV150 index of Silicon Valley's biggest companies.
"All week this trendline has held back the bulls," Ryan Detrick, senior technical strategist at Schaeffer's Investment Research, told CNBC. "Still, the more important area could be the Russell 2000 Index 1,000 region. This area has held as resistance since May and won't go down without a fight." The Russell index closed Friday at 1,005.39, its highest point in more than five years.
With Friday's gains, Detrick said "it could signal we could have a strong July rally."
The yield on the 10-year Treasury note jumped to a two-year high of 2.70 percent, up from 2.56 percent shortly before the jobs report came out. It was a sign that investors think the economy is improving.
"Job growth is starting to hum along," Jonathan Basile, director of U.S. economics at Credit Suisse Holdings USA, told Bloomberg News. "All of it is laying the groundwork for more spending and more jobs. This virtuous cycle is really taking hold for the second half of the year."
Apple's (AAPL) worldwide rival, Samsung Electronics, missed already modest expectations for its quarterly earnings guidance Friday, deepening worries that its smartphone business may have peaked, as growth in sales of its blockbuster Galaxy phones begins to wane and new rivals emerge to eat away at its market share.
Samsung faces further profit-outlook downgrades by analysts after posting earnings that missed estimates as sales of its flagship Galaxy S4 handset fell short of expectations. Operating income was about 9.5 trillion won ($8.3 billion) in the three months ended June, South Korea-based Samsung said in its preliminary earnings report. That missed the 10 trillion-won average of 34 analyst estimates compiled by Bloomberg. Samsung stock fell the most in a month.
Silicon Valley stocks were largely quiet. Apple failed to benefit from Samsung's stumble, slipping 0.8 percent. The hardware sector fared well, however, with Oracle (ORCL), Intel (INTC), HP, VMware and Juniper Networks all gaining more than 1.2 percent.
SV150 market report:
The SV150 index of Silicon Valley's largest tech companies was up 7.37, or 0.6 percent, to 1,255.31
The tech-heavy Nasdaq composite index: Up 35.71, or 1.04 percent, to 3,479.38
The blue chip Dow Jones industrial average: Up 147.29, or 0.98 percent, to 15,135.84
And the widely watched Standard & Poor's 500 index: Up 16.48, or 1.02 percent, to 1,631.89
Check in weekday afternoons for the 60-Second Business Break, a summary of news from Mercury News staff writers, The Associated Press, Bloomberg News and other wire services. Contact Dan Nakaso at 408-271-3648. Follow him at Twitter.com/dannakaso.