Sydney, July 9, 2007 (ABN Newswire) - US stocks gained on Friday after crude oil hit 10-month highs pushing shares of major oil companies. Investors were also mostly relieved to hear that the unemployment rate held steady at 4.5 per cent in June for the third straight month. The Labor Department also reported that 132,000 jobs were added, which was fewer than in May, but slightly higher than the average forecast. The news bodes well for the long-term performance of the stock market, but it also raises worries that a strong economy will make the Federal Reserve more willing to raise interest rates to curb inflation.
Turning to the markets; The Dow Jones Industrials was up 46 points closing at 13,612; the S&P500 gained 5 hitting 1,530, and the Nasdaq was up 10 points finishing at 2,667.
In company news, Shares in Genzyme dropped 6.2% to $60.85 after the company said its experimental drug for diarrhea which is linked to bacteria worked no better than a standard antibiotic. The result is a blow one to of the world's biggest biotechnology companies, as the drug had been a prominent in its pipeline. A JP Morgan analyst declared the drug dead
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