The S&P 500 and Nasdaq increased by over 1% on Friday, following the May Jobs report that revealed U.S. employers added 139,000 jobs, surpassing economist expectations of 125,000-130,000. The unemployment rate remained unchanged at 4.2%. Wage growth also outperformed inflation, with average hourly earnings rising by 3.9% year over year, compared to a 2.3% rise in inflation in April.
Key stocks of interest include Paylocity (PCTY), which recently surpassed earnings estimates by 16% for its fiscal third quarter, achieving an EPS surprise for 26 consecutive quarters. Maximus (MMS), another payroll-related stock, reported a 47% increase in earnings expectations for its fiscal second quarter. The healthcare and hospitality sectors saw the most significant job gains, adding 62,000 and 48,000 jobs, respectively, in May.
