By Anora Mahmudova and Sara Sjolin, MarketWatch
NEW YORK (MarketWatch)--The U.S. stock market rose modestly on
Friday as investors shrugged off a weaker-than-expected jobs
report. The S&P 500 and Dow Jones Industrial Average recorded
their fifth consecutive weekly gains.
A surprisingly weak jobs report indicated a marked slowdown in
the labor market. However the initial reaction was muted, as
investors appeared to focus on the idea that the creation of fewer
new jobs than expected won't alter the Federal Reserve's thinking
on interest rates.
Analysts also cautioned against putting too much emphasis on
just one month's data.
The economy added 142,000 new jobs in August, the smallest gain
since December and well below Wall Street expectations for
228,000.
Even so, "most indicators in the report were better than in
July," said John Canally, investment strategist and economist at
LPL Financial. "After the initial knee-jerk reaction, investors
looked into the details and at implications and realized that this
report was not a game-changer." .
But Uri Landesman, the president of Platinum Partners, a New
York-based hedge fund, said the weak jobs numbers may indicate the
recovery is stalling.
"In the short term, a few more weak data points may trigger a
correction. The market is pricing in the good news but not a lot of
bad news. From a technical standpoint, there is not much support in
the S&P 500, as the index moved in a straight line up,"
Landesman said.
The S&P 500 (SPX) gained 10 points, or 0.5%, to 2,007.71,
with all 10 main sectors finishing higher. The Dow Jones Industrial
Average (DJI) gained 67.78 points, or 0.4%, to 17,137.36. The
Nasdaq Composite (RIXF) added 20.61 points, or 0.3%, to
4,582.90.
Away from jobs: NATO leaders finished their two-day meeting in
Wales on Friday, where they have been working on a new set of
sanctions against Moscow for supporting pro-Russia rebels in
Ukraine. Speaking at the summit, British Prime Minister David
Cameron said the U.K. would commit 3,500 troops to a new
"spearhead" force to react to Russia's actions in Ukraine.
Meanwhile, Ukraine signed a cease-fire with pro-Russian rebels
that took effect Friday evening local time.
Separately, President Barack Obama on Friday said the U.S. would
work with Western allies and countries in the Mideast to develop a
strong diplomatic and political effort to degrade and defeat the
"savage" Islamic insurgent group known as ISIS.
Movers and shakers: Tesla Motors (TSLA) shares fell 3% as
investors are pulling back after outsize gains made partially in
anticipation of the electric vehicle manufacturer's decision on
where to locate its battery factory.
Shares of Michael Kors Holdings Ltd. (KORS) slid 4.5% after the
company's biggest shareholder sold its stake overnight.
Quiksilver Inc. (ZQK) plunged 25% as the apparel retailer's
third-quarter results missed analysts' estimates.
Gap Inc. (GPS) shares fell 4.2% after the apparel retailer
reported disappointing sales for August. (Read more about the day's
notable stock moves here:
http://www.marketwatch.com/story/apple-shares-battered-el-pollo-loco-rallies-on-earnings-2014-09-05.)
Other markets: The euro (EURUSD) hovered around a 14-month low,
following the ECB's easing measures announced on Thursday. European
stock markets closed mostly lower, while Asian bourses closed
mixed.
Oil futures (CLV4) fell on Friday, while precious metals were
little changed.
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