Solid earnings, including a record quarterly profit from Chesapeake Energy, and decent jobs numbers help put a positive spin on Wall Street today, underpinned by support for further bond-buying by the US Federal Reserve to help rebuild economic momentum.
Job openings in June climbed to the highest level in four years, according to US Labor department data. To be sure, the pace of hiring eased from the previous month.
"The economy is still growing, that's underpinning labour demand," Henry Mo, a senior economist at Credit Suisse in New York, told Bloomberg News. "Job availability is increasing, but we still need to see employers put this into action. The economy will grow a little better in the second half than in the first half and the labour market will improve gradually."
Boston Fed Bank President Eric Rosengren told the New York Times that the Fed should buy more Treasury and mortgage-backed securities, and continue doing so until it deemed the economic recovery back on track.
"You continue to do it until it's clear that you're no longer treading water," Rosengren said in an interview with the New York Times. "You continue to do it until you have documented evidence that you're getting growth in income and the unemployment rate consistent with your economic goals."