By Kristina Peterson
NEW YORK (Dow Jones) -- U.S. stocks rose Friday as a moderation
in the pace of job losses encouraged investors, putting the market
on track to snap a three-week losing streak.
The Dow Jones Industrial Average (DJI) climbed 69 points, or
0.7%, to 10389, in recent trading. A weaker-than-expected reading
on the services sector pared the measure's gains from earlier in
the session, when it had been up as much as 131 points. Still, the
Dow is up about 2.4% for the week, marking its first positive week
since the week ended Aug. 6 and the measure's best pre-Labor Day
week since 1990.
The gain followed data showing nonfarm payrolls fell 54,000 last
month, roughly half the 110,000 drop economists had expected and
matching the level of revised losses recorded the previous month.
The unemployment rate, calculated using a separate household
survey, edged up to 9.6%, as expected, from 9.5% for the previous
two months.
"The market liked the numbers for two reasons: one, it wasn't a
bad number, and there was some anxiety about that possibility. And
two, it was actually a pretty good one, with a nice revision," said
Michael Shea, managing partner of Direct Access Partners.
Shea added, "No rational person is going to change their view of
the economic health of the U.S. economy based on one set of
numbers, but it's still a relief."
The Nasdaq Composite (RIXF) climbed 0.9% to 2220, and is on
track for a weekly gain of about 3.1%. The Standard & Poor's
500 index (SPX) tacked on 0.8% to 1098, putting its advance for the
week at 3.2%.
Friday's jobs numbers followed recent reports on manufacturing
and housing that also came in above expectations, extending a
notable reversal from a long string of disappointing data that had
driven the Dow's biggest August drop since 2001.
This week's better-than-expected data helped the Dow start
September with a bang, marking its best three days of a month since
March 2009. The strong start to the month comes as investors have
been encouraged that a double-dip recession may be avoided, even if
the economic recovery still looks weak.
In an illustration of that weakness, data released Friday by the
Institute for Supply Management showed the U.S. non-manufacturing
sector expanded at a much slower pace last month.
"As far as the whole economy's concerned, it's still a debate
which way we're going," said David Bellantonio, head of U.S.
trading at Instinet.
The U.S. Dollar Index (DXY), reflecting the U.S. currency
against a basket of six others, declined 0.3%. Treasurys slipped,
pushing the yield on the 10-year note (UST10Y) up to 2.72%.
Crude-oil futures dropped below $74 a barrel while gold futures
also declined.
On the deals front, Goldcorp (GG) slipped 2.6% after the gold
miner agreed to acquire all outstanding shares of Andean Resources
for $3.4 billion. Andean's principal asset is the Cerro Negro gold
project located in Argentina. .
Shares of Take-Two Interactive Software Inc. (TTWO) rallied 10%
after the company reported an unexpected quarterly profit and said
it expects a fiscal-year profit. .
Tax-preparation company H&R Block Inc. (HRB) climbed 8.2%
after reporting a smaller-than-expected loss from continuing
operations.
Campbell Soup Co. (CPB) slipped 2.4% after its fiscal
fourth-quarter earnings jumped 64% on prior-year write-downs, but
revenue at its soup business weakened.
This afternoon, Dennis Lockhart, president of the Federal
Reserve Bank of Atlanta, is scheduled to speak in Tennessee about
the economy.