By Anora Mahmudova and Sara Sjolin, MarketWatch
NEW YORK (MarketWatch)--The S&P 500 enjoyed its biggest
one-day gain in nearly two months, while the Dow Jones Industrial
Average tallied its biggest gain in seven months, thanks in large
part to a stronger-than-expected jobs report that delivered a dose
of confidence to investors.
The jobs report was not only robust, it was also the sort of
Goldilocks data message the markets craved--strong headline numbers
along with a dose of wage-growth stagnation. The jobs report
offered markets the view that U.S. economic growth will continue
but no so vigorously as to raise the inflation antenna of Federal
Reserve, forcing them to raise rates abruptly.
Friday's also helped put a dent in weekly losses, but the main
benchmarks still finished the week modestly lower. Marking the
second weekly decline in a row for major indexes.
On Friday. the S&P 500 (SPX) rose 21.73 points, or 1.1%, to
1,967.90, with health care and financials stocks leading the
broad-based gains.
The Dow Jones Industrial Average (DJI) gained 220 points, or
1.2%, to 17,009.69. The Nasdaq Composite (RIXF) added 45.43points,
or 1%, to 4,4755.62.
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,
representing the lowest level since January as the nation exported
a record amount of petroleum and imported less.
U.S. services and other non-manufacturing 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 8% after the
pharmaceutical company raised its third-quarter and full-year
earnings guidance.
Tekmira Pharmaceuticals Corp. (TKMR) shares jumped 16%, as the
widening breadth of Ebola cases in the U.S. brightened the
company's 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 5.3%,
Newmont Mining Corporation (NEM) was down 2.5%.
(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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