By Anora Mahmudova and Sara Sjolin, MarketWatch
NEW YORK (MarketWatch)--U.S. stock prices rallied on Friday
bolstered by stronger-than-expected jobs report that suggested the
economy is on a solid footing.
The jobs report was not only robust, it was also what markets
craved--strong headline numbers along with a dose of wage-growth
stagnation. Such recipe means economic growth will continue but
lack of inflation will keep the Fed from rushing to raise interest
rates.
The gains on Friday were helping dent weekly losses, but the
main benchmarks were still on track to finish the week lower.
The S&P 500 (SPX) rose 20 points, or 1%, to 1,966.10, with
health care and consumer discretionary stocks leading the gains.
The Dow Jones Industrial Average (DJI) gained 173 points, or 1%, to
16,974.28. The Nasdaq Composite (RIXF) added 50 points, or 1.1%, to
4,479.54.
Mike Arone, chief investment strategist at State Street Global
Advisors' U.S. Intermediary Business, stressed that not only the
headline number of the jobs report was good, but underlying
components showed strength, referring to substantial upward
revisions for July and August.
"The fact that the wage growth remains tame and inflation below
target, bodes well for the markets as the Fed won't be pressured to
raise rates sooner. It appears that markets are finally in a cycle
where good news is good news," Arone said.
Data:The U.S. economy added 248,000 jobs in September and hiring
in August turned out to be a lot stronger than forecasts, showing
the U.S. economy entered the fall with rising momentum. The
unemployment rate fell to 5.9%, falling below 6% mark for the first
time since 2008.
The U.S. trade deficit fell 0.5% to $40.1 billion in August,
marking the lowest level since January as the nation exported a
record amount of petroleum and imported less.
U.S. services and other nonmanufacturing companies reported
slower growth for September, after hitting its highest level since
2008 in August, according to a survey of senior executives released
Friday.
Movers: Mylan Inc. (MYL) shares rallied 7.9% after the
pharmaceutical company raised its third-quarter and full-year
earnings guidance.
Tekmira Pharmaceuticals Corp. (TKMR) shares jumped 9.7%, as the
widening breadth of Ebola cases in the U.S. gave brighten the
company's business outlook. Tekmira is one of a handful of biotech
companies working on treatments for the Ebola virus.
In commodities-related shares, plunging gold prices put pressure
on miners, while energy groups suffered from falling oil prices.
Oil and mining stocks were among the worst performers on the
S&P 500 on Friday. Diamond Offshore Drilling (DO) fell 4.4%,
Newmont Mining Corporation (NEM) was down 2.9%.
(Read more about the day's notable stocks in Movers &
Shakers column
http://www.marketwatch.com/story/gm-jp-morgan-krispy-kreme-in-focus-2014-10-03.).
Other markets: Asian markets closed mostly in positive
territory, and European markets rebounded after a sharp selloff on
Thursday. The dollar rose against rivals after the jobs report,
recovering after a sharp slide over the past two sessions. Oil
futures fell, while gold prices (GCZ4) slumped Friday in the wake
of an upbeat jobs report, turning negative for the year and briefly
trading below $1,200 an ounce.
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