By Anora Mahmudova and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market kicked off the
week on a positive note as investors remained optimistic after a
strong jobs report on Friday, while M&A deals and waning
protests in Hong Kong added to the positive momentum.
Upcoming news from the Federal Reserve's labor-market conditions
index, due at 10 a.m. Eastern Time, is widely expected to confirm
the positive outlook for the U.S. economy.
Meanwhile, the S&P 500 (SPX) rose 8 points, or 0.4%, to
1,976.61. The Dow Jones Industrial Average (DJI) added 80 points,
or 0.5%, to 17,089.24. The Nasdaq Composite (RIXF) gained 15
points, or 0.4%, to 4,491.94.
Data: The Fed's labor-market conditions index is the first
regularly scheduled release of the indicator. The LCMI condenses
several pieces of labor data into one reading, in order to give a
better view of the market than offered solely by the unemployment
rate, which dropped to 5.9% in September.
A healthy number for the new index would be seven, according to
Bank of America.
Last Friday's strong jobs report led to the S&P 500 rally to
the biggest gain in nearly two months. The U.S. economy last month
added 248,000 jobs and the unemployment rate fell below 6%, to
5.9%, for the first time since 2008, outpacing expectations.
The report showed wage growth is stagnating, which appeared to
curb concerns about rising inflation -- a closely watched metric,
which, if elevated, could prompt the Fed to quickly raise interest
rates.
Fed speakers: Kansas City Fed President Esther George, who has
supported an interest-rate hike sooner rather than later, will talk
about the U.S. economy after the market closes. George, who isn't a
voting member of the Fed policy committee this year, will speak at
8:30 p.m. Eastern Time in Albuquerque, NM.
Stocks on the move: Hewlett-Packard (HPQ) shares climbed 4.3% as
the company said it plans to split into two, separating its
personal-computer and printer businesses from its corporate
hardware and services operations.
Medical technology company Becton, Dickinson (BDX) has reached a
deal to buy CareFusion(CFN) for $12.2 billion in cash and stock.
CareFusion shares rallied 23%.
Tesla Motors(TSLA) is set to unveil its Model 3 mass-market car
and new versions of its Model S sedan at an event on Thursday,
according to Global Equities Research analyst Trip Chowdhry. Tesla
shares were up 1.9%.
H&R Block (HRB) shares fell 4.9% after the tax services
company said regulatory approval for the sale of H&R Block Bank
won't be completed in the current year.
Sunesis Pharmaceuticals (SNSSD) sank 70% after the company said
a late-stage trial of a cancer treatment failed to meet its primary
goals. (Read more in Movers & Shakers
http://www.marketwatch.com/story/container-store-helen-of-troy-in-focus-2014-10-03.)
Other markets: The dollar (DXY) slightly pulled back against
major rivals after Friday's climb. Japan's Nikkei Average and Hong
Kong's Hang Seng Index each rose more than 1%, and European stocks
advanced.
Oil futures (CLX4) edged higher, while gold prices (GCZ4) picked
up $3.2 an ounce, but traded below $1,200 an ounce. Gold on Friday
turned negative for the year.
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