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Jobs market gains prompt talk of rate hikes

Traders work the floor of the New York Stock Exchange.
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Stronger-than-expected job growth of 288,000 in June sparked talk that the Fed could move sooner to raise interest rates, but central bank watchers say the underlying job market is still too weak to change the Fed's course.

Stocks moved higher, with the Dow crossing 17,000 for the first time ever at the opening bell. Bond yields backed up, with the 10-year yield moving 0.5 to 2.67 percent. The two-year, which reflects attitudes about short-term rates, touched 0.52 percent, its highest level since September.

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"Clearly what the bond market is telling us supports the idea the economy is accelerating and ultimately, the Federal Reserve is on the right course winding down its asset purchase program," said Daniel Greenhaus, global market strategist at BTIG.