Dow Jones Soars 400 Points After Robust Jobs Report; Big Earnings Winners Include Lululemon, MongoDB

Stock market rallies gained momentum Friday morning, with Dow Jones Industrial Average rising by more than 400 points an hour into the session. Nike (NKE), Caterpillar(CAT) and Tesla (TSLA) were the Dow Jones' top performing stocks.

The mood was positive last night after the Senate passed the bill to raise the debt ceiling by a vote 63-36.

Stocks also reacted positively to another positive jobs report. The consensus was for a 339,000 increase in April nonfarm payrolls, but the actual number is much higher at 339,000. The unemployment rate increased more than anticipated to 3.7%. Job growth in April has been revised up to 294,000, from an initial reading 253,000. The average hourly earnings increased 0.3% from month to month. Over the past year, average hourly earnings have increased by 4.3%. This is slightly below the consensus estimate of 4.4%.

As traders discuss the Federal Reserve’s next move during its meeting on June 13-14, the 10-year Treasury yield rose 6 basis points to 3.66 percent. Federal funds futures traders believe that there is a 71% probability that the Fed will keep rates unchanged.

Nike stock gained nearly 3%, making it one of the Dow Jones' top gainers. Nike's recent higher-volume declines point to a stock in distribution.

Caterpillar (MMM) and 3M (MMM), both of which outperformed the Dow Jones, lagged behind, with a decline of nearly 4%. Bloomberg reported that Amazon.com's (AMZN), Dish Network, and T-Mobile were in discussions with Verizon about offering a mobile service at a reduced cost or for free to U.S. prime members.

Outside The Dow Jones

The Nasdaq Composite extended gains, but was down from its highs of 1.2% after the first 15 minute. Nasdaq stocks such as MongoDB (MDB), and retailer Lululemon Athletica(LULU) were the standouts.

MongoDB surged after it reported a 18% increase in its quarterly profit. Revenue grew by 29%, to $368.3 millions. LULU's stock was also poised to break a nine session losing streak. The retailer's shares jumped by 15% after delivering another quarter of solid bottom-line and revenue growth.

Tesla (TSLA) made further progress Thursday after surpassing a 207.79 purchase point. It's Leaderboard stock.

S&P 500 (IWM) and iShares Russell 2000 Index ETF (IWM) both gained 0.7% and 1,4% respectively. This was partly due to a recovery in financial stocks. The SPDR S&P Regional Banking ETF KRE was up 3%. However, the KRE's current 50-day moving median, which is around 41, could be a resistance level.

Comerica and KeyCorp both outperformed the S&P 500 with gains exceeding 4%.

Stocks on the Rise

MarketSmith Growth 250 also had a good Friday. Kinsale's (KNSL), which was previously rated as underperform, has now been upgraded to outperform by BMO Capital. The price target for KNSL is now 389.

The trendline for Celsius (CELH) has reached a new high of 4%.