By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market gains mount in
late session on Friday as investors examine the details of the jobs
report and find a silver lining in an otherwise disappointing
headline number.
The 113,000 new jobs added in January fell far short of
forecasts, but the unemployment rate ticked down and the labor
force participation rate edged up, according to the Commerce
Department.
Investors found an upbeat earnings report from Expedia Inc.
(EXPE) encouraging.
The S&P 500 (SPX) rose 15 points, or 0.9%, to 1,788.24,
building on the previous day's gains. The benchmark index is set to
finish the week with a modest gain reversing sharp losses during
the volatile week.
The Dow Jones Industrial Average (DJI) rose 105 points, or 0.7%,
to 15,733, also on track to end the week slightly higher.
The Nasdaq Composite (RIXF) added 50 points, or 1.3%, rising to
4,106.69 and is set to finish the week with a slight gain. Follow
our stock market live blog.
"The top line in the jobs report was weak but the details had
many positive aspects," said Paul Zemsky as chief investment
officer of Multi-Asset Strategies at ING U.S. Investment
Management.
"The household survey side of the report, which we think leads
the businesses survey, was far stronger at 638,000 -- there is a
big discrepancy, so we believe the labor market is stronger than
what the headline number suggests," Zemsky said.
"Also, the fact that the unemployment rate fell and labor force
participation rose is a good sign," he added.
Details in the report, including an increase in aggregate hours
worked and average weekly earnings, signaled a "reduction in
labor-market slack," said Millan Mulraine, deputy head of U.S.
research and strategy at TD Securities.
Wall Street saw the best gains in seven weeks on Thursday
following a bigger-than-expected drop in weekly jobless claims and
some upbeat earnings.
Adding to the positive sentiment were upbeat earnings from
Expedia Inc. (EXPE). Shares surged 12% after the company reported
profits that beat estimates.
Shares of Activision Blizzard Inc. (ATVI) jumped 15%. The
videogame company reported a 51% decline in fourth-quarter profit
late Thursday, but shares strengthened as adjusted results beat
expectations.
Apple Inc. (AAPL) shares rose 1.9% when it emerged that the
company bought $14 billion of its own shares in the two weeks since
reporting results that left investors disappointed.
Shares of LinkedIn Corp. (LNKD) fell 6.7% after the social
network for professionals posted a weak outlook, though
fourth-quarter results topped analysts' forecasts late Thursday.
Shares fell more than 8% in late trade.
Cigna Corporation (CI) shares tumbled 9.2% after the health
insurer's disappointing fourth-quarter earnings added to Wall
Street worries that insurers are getting squeezed by rising medical
costs.
In other markets, European stocks moved higher after the U.S
jobs data, while Asia closed broadly higher. The dollar shrugged
off most losses Friday sparked by data showing the U.S. economy
added fewer jobs than expected in January, as investors looked past
the weak headline number to the details.
Gold trimmed gains, while oil prices and natural gas rose.
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