Shareholders of H&R Block saw something that they liked in the company’s quarterly earnings report that came out late Thursday.
Despite a larger quarterly loss and revenue decline, the stock shot up early Friday and stayed that way all day. It finished 9.2 percent higher, gaining $2.30 to close at $27.28.
Even though the company’s tax preparation volume was off through February, Block said it expects to finish the year with a volume gain.
The stock got a boost, though, after CEO William Cobb said on a conference call that the company was winning market share, Barrington Research analyst Joe Janssen said.
. At least one analyst raised his outlook on the company, too.
H&R Block had the biggest percentage gain on the S&P 500.
There were other winners locally on Friday. UMB closed up 1.1 percent, Kansas City Southern gained 1.7 percent, Garmin rose 1.7 percent and Compass Minerals advanced 1.4 percent. YRC gained nearly 4 percent.
There were no notable losers among the locals.
On Wall Street, the Dow Jones industrial average gained 67.58 points, or 0.5 percent, to 14,397.07. The index surpassed its previous record close Tuesday and logged a sixth straight increase Friday.
The Standard & Poor’s 500 index rose 6.92 points, or 0.5 percent, to 1,551.18. The Nasdaq composite advanced 12.28 points, or 0.4 percent, to 3,244.37.
The BATS 1000 rose 97.88 points, or 0.56 percent, to close at 17,524.70.
U.S. employers added 236,000 jobs last month and the unemployment rate fell to 7.7 percent from 7.9 percent in January, the Labor Department reported. That’s far better than the 156,000 job gains and unemployment rate of 7.8 percent that economists surveyed by FactSet expected.
The strong job growth shows that employers are confident about the economy despite higher taxes and government spending cuts.
Optimism that hiring is picking up has been one of the factors bolstering the stock market this year. Stocks have also gained on evidence that the housing market is recovering and company earnings continue to growing.
Stocks have also been boosted by continuing economic stimulus from the Federal Reserve.
The U.S. central bank began buying bonds in January 2009 and is still purchasing $85 billion each month in Treasury bonds and mortgage-backed securities. That has kept interest rates near historic lows, reducing borrowing costs and encouraging investors to move money out of conservative investments like bonds and into stocks.
Investors have also been pondering what the Fed’s next move will be. That question was in especially sharp focus Friday after the government reported the surge in hiring last month.
Andres Garcia-Amaya at JPMorgan Asset Management said that the strong jobs report may heighten speculation that the Fed will end its stimulus sooner than investors had anticipated, which would be a negative for the stock market.
“If the economy maintains or increases the pace of job creation….that could change the Fed’s stance,” said Garcia-Amaya. “That could mean that the Fed could take the `punch bowl’ away.”
The Dow has gained 9.9 percent this year and is trading at record levels, having broken its previous record of 14,164 on Tuesday. The Standard & Poor’s 500 index is up 8.8 percent since the start of the year, and is less than 1 percent short of its all-time high close of 1,565 set Oct. 9, 2007.
The stock market is drawing in more investors as it continues to surge.
Investors put $3.2 billion into stock mutual funds in the week ending Wednesday, data provider Lipper reported Friday. That’s the ninth straight week of net inflows to stock funds, bringing this year’s total to $59 billion.
Friday’s jobs report strengthens the case of stock market bulls, who say the economy is gaining momentum following a long and tepid recovery after the financial crisis and Great Recession, said JJ Kinahan, chief derivatives strategist at TD Ameritrade.
“It gives hope to those that say this rally isn’t just about the Fed, it’s about the economy recovering,” said Kinahan. “It’s giving people confidence that maybe the economy is turning the corner.”
The Dow is up 120 percent since reaching a 12-year low during The Great Recession. The index bottomed out almost exactly four years ago, on March 9, 2009, at 6,547. The S&P 500 has gained 129 percent since hitting its own bottom of 676 on the same date.
McDonald’s contributed the most to the Dow’s gains, rising $1.62, or 1.7 percent, to $98.71. The fast-food restaurant chain reported that a key sales figure fell 3.3 percent in February, but the decline wasn’t as bad as analysts were expecting.
H&R Block had the biggest percentage gain on the S&P 500, advancing $2.30, or 9.2 percent, to $27.28.
The company said late Thursday that its net loss widened because of a delay to the start of this year’s tax season. The stock got a boost, though, after CEO William Cobb said on a conference call that the company was winning market share, Barrington Research analyst Joe Janssen said.
The yield on the 10-year Treasury note, which moves inversely to its price, rose to 2.06 percent from 2 percent Thursday. The yield is at its highest in 11 months.
Capitol Federal Financial rose 5 cents, or 0.42%, to close at $12.09.
Cerner Corp. rose 78 cents, or 0.85%, to close at $92.29.
Commerce Bancshares Inc. rose 5 cents, or 0.13%, to close at $38.28.
Compass Minerals rose $1.08, or 1.42%, to close at $77.34.
DST Systems Inc. rose 57 cents, or 0.83%, to close at $69.56.
Ferrellgas Partners L.P. rose 28 cents, or 1.39%, to close at $20.48.
Garmin Ltd. rose 59 cents, or 1.68%, to close at $35.61.
Great Plains Energy rose 14 cents, or 0.62%, to close at $22.63.
H&R Block Inc. rose $2.30, or 9.21%, to close at $27.28.
Inergy L.P. rose 4 cents, or 0.20%, to close at $20.30.
Kansas City Life Insurance Co. rose 13 cents, or 0.35%, to close at $37.74.
Kansas City Southern rose $1.71, or 1.65%, to close at $105.32.
Layne Christensen Co. rose 28 cents, or 1.33%, to close at $21.30.
O'Reilly Automotive Inc. rose 32 cents, or 0.31%, to close at $104.70.
Sprint Nextel Corp. rose 3 cents, or 0.51%, to close at $5.88.
UMB Financial Corp. rose 52 cents, or 1.14%, to close at $46.25.
Waddell & Reed Financial Corp. rose 35 cents, or 0.83%, to close at $42.38.
YRC Worldwide Inc. rose 23 cents, or 3.93%, to close at $6.08.