Shares of industrial and transportation companies rallied after strong jobs data.
U.S. employers added a larger-than-anticipated 339,000 workers in June, the Labor Department reported. In the wake of the data, investors bought back into beaten-down sectors including industrials, according to one strategist.
"Some of the old-school stocks -- the Honeywells, the Boeings of the world -- are having a really nice day," said JJ Kinahan, chief executive of IG North America, and president of its brokerage tastytrade.
"[Investors] are continuing to buy the tech stocks but maybe not quite as aggressively as they are some of these old-school stocks."
The strength in cyclical sectors and other economically sensitive stocks, such as small caps, bodes well for continued economic growth, said another strategist. "The Russell 2000 can serve as a bellwether for the broader economy," said Quincy Krosby, chief global strategist at brokerage LPL Financial.
The small caps "have really had difficulty pushing out with the kind of fervor we're seeing today. For a variety of reasons, you want to see broader participation in the market, and not just a handful of mega cap tech stocks."
Three companies with ties to former chemical maker DuPont said they had agreed to pay $1.185 billion in the first major settlement in a landmark environmental fight in which hundreds of communities allege that so-called "forever chemicals" in firefighting foam contaminated drinking water.
3-D printing concern Stratasys rallied after it received an unsolicited offer of more than $1 billion in cash and stock from larger rival 3D Systems.
Shares of car makers surged as the strong jobs data was interpreted as foreshadowing higher demand.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
06-02-23 1753ET
