Economic Reports Help Markets

Prices rose smartly on Wall Street Friday as traders were pleasantly surprised by the government’s report that inflation and the economy aren’t running rampant after all.

The government’s monthly employment report helped temper investors’ concerns that the Federal Reserve might soon raise interest rates to slow the economy.

Bargain-hunting that followed the recent selloff on Wall Street also contributed to Friday’s gains, as the Dow Jones industrial average rose 136.15, adding to an 85-point gain on Thursday. For the week, the Dow was up 240.10.

Broader stock indicators were also higher. The battered Nasdaq composite index rose 75.02 to 2,478.34, its fifth-largest point gain. The Standard & Poor’s 500 rose 28.21 to 1,327.75.

The Labor Department reported that the nation’s unemployment rate dipped to a 29-year low of 4.2 percent in May. Black unemployment hit a record low, and jobless rates for teenagers and adult women fell to the lowest levels in three decades.

But investors were particularly impressed by the fact that only 11,000 jobs were created last month, far below the 225,000 expected by economists and a sign that the economy is growing moderately.

The 4.2 percent jobless rate in May matched March’s level. Before that, unemployment last touched 4.2 percent in February 1970.