By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks gained on Tuesday, further
propelling the S&P 500's record rise, as the September
nonfarm-payrolls report supported the notion that the Federal
Reserve's monthly bond purchases would continue into next year.
"I think today's stock market and new highs are all about the
nonfarm payrolls number and the likely non-response form the Fed.
This is a bit of a trifecta -- moderate earnings growth, low
inflation and an accommodative Fed; it has been the story all
year," said Jim Russell, senior equity strategist for US Bank
Wealth Management.
Treasury yields and the dollar fell, while gold climbed.
"When we have more stimulus that means the printing presses at
the Treasury are printing more dollars, which forces the value of
the dollar lower; gold is starting to move back up, as more and
more stimulus could have an inflationary impact on the U.S.
economy. That's why gold is having a bid here," said Chris Gaffney,
a senior market strategist at Everbank.
Ending at its highest level since Sept. 19, the Dow Jones
Industrial Average (DJI) rose 75.46 points, or 0.5%, to
15,467.66.
Closing up for a fifth consecutive session, its longest winning
streak since one ending Sept. 11, the S&P 500 index (SPX)
climbed 10.01 points, or 0.6%, to 1,754.67, with the material and
consumer-staple sectors pacing gains that involved all but
technology of its major industry groups.
Netflix Inc. (NFLX) fell 9.2%, after the video-subscription
service's CEO chalked up its surge to "euphoria" on the part of
investors.
Apple Inc. (AAPL) declined 0.3% after debuting another version
of its iPad mini, this one with a high-definition screen, along
with a skinnier and lighter model for a larger iPad called the iPad
Air, both of which go on sale in November.
Coach Inc. (COH) fell 7.5% after reporting revenue beneath
expectations. Delta Air Lines Inc. (DAL) rose 3.2% after the
carrier's quarterly profit exceeded estimates. Whirlpool Corp.
(WHR) gained nearly 12% after the appliance manufacturer hiked its
outlook.
The Nasdaq Composite (RIXF) closed up 9.52 points, or 0.2%, at
3,929.57.
For every share falling, roughly three rose on the New York
Stock Exchange, where 753 million shares traded. Composite volume
cleared 3.8 billion.
The dollar (DXY) lost ground against the currencies of major
U.S. trading partners including the yen (USDJPY) and the euro
(EURUSD). The yield on the 10-year Treasury note (10_YEAR) shed 9
basis points to 2.516% and gold futures for December delivery
(GCZ3) rose $26.80, or 2%, to $1,342.60 an ounce.
Crude futures for November delivery (CLX3) lost $1.42, or 1.4%,
to $97.80 a barrel.
"The numbers just don't support a taper. The Fed will look to
continue their bond-purchasing program well into 2014," said
Everbank's Gaffney of the data, which showed the U.S. economy
creating 148,000 jobs last month, fewer than expected.
The jobs report means "the Fed is likely going to stay with us
through the holiday season; they'll be with us for the holiday
dinner and probably be celebrating the New Year with us," agreed
Darrell Cronk, regional chief investment officer at Wells Fargo
Private Bank.
Another economic report released Tuesday had the U.S. Department
of Commerce reporting a 0.6% rise in August construction spending,
slightly better than the 0.6% increase predicted by economists
surveyed by MarketWatch.
Separately, the Richmond Fed's manufacturing report found
activity remained weak in October.
Coach Inc. (COH) fell 7.7% after reporting revenue beneath
expectations. Delta Air Lines Inc. (DAL) rose 3.8% after the
carrier's quarterly profit exceeded estimates. Whirlpool Corp.
(WHR) gained 9.8% after the appliance manufacturer hiked its
outlook.
Off session highs, the Nasdaq Composite (RIXF) was up 2.71
points, or 0.1%, at 3,922.75.
For every share falling, roughly three rose on the New York
Stock Exchange, where 273 million shares traded by 11:45 a.m.
Eastern. Composite volume cleared 1.6 billion.
"The numbers just don't support a taper. The Fed will look to
continue their bond-purchasing program well into 2014," Chris
Gaffney, a senior market strategist at Everbank, said about the
data, which showed the U.S. economy creating 148,000 jobs last
month, fewer than expected.
The jobs report means "the Fed is likely going to stay with us
through the holiday season; they'll be with us for the holiday
dinner and probably be celebrating the New Year with us," agreed
Darrell Cronk, regional chief investment officer at Wells Fargo
Private Bank.
The dollar (DXY) lost ground against the currencies of major
U.S. trading partners including the yen (USDJPY) and the euro
(EURUSD). The yield on the 10-year Treasury note (10_YEAR) shed 8
basis points to 2.525% and gold futures for December delivery
(GCZ3) rose $25.10, or 1.9% to $1,340.90 an ounce.
Crude futures (CLX3) for November delivery lost 75 cents, or
0.8%, to $98.47 a barrel.
Another economic report released Tuesday had the U.S. Department
of Commerce reporting a 0.6% rise in August construction spending,
slightly better than the 0.6% increase predicted by economists
surveyed by MarketWatch.
Separately, the Richmond Fed's manufacturing report found
activity remained weak in October.
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