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* Nonfarm payrolls increase by 136,000 in Sept
* August payrolls revised up to 168,000 from 130,000
* Apple rises on report of ramp up in iPhone production
* HP Inc falls after announcing $1 bln charge from
restructuring
* Indexes up: Dow 0.68%, S&P 0.68%, Nasdaq 0.74%
(Updates to open)
By Medha Singh
Oct 4 (Reuters) - U.S. stocks rose on Friday as moderate
jobs growth in September offered some relief from a spate of
dismal economic data this week that has rankled markets and
fueled concerns that the United States was sliding into a
recession.
The Labor Department's report showed nonfarm payrolls
increased by 136,000 last month and unemployment rate dropped to
near a 50-year low, but manufacturing payrolls declined for the
first time in six months. "It's sort of a Goldilocks report: it's not strong enough to
move the Federal Reserve away from cutting rates at the end of
October, but it's not weak enough to make you concerned about
the labor market or the consumer," said Shawn Snyder, head of
investment strategy at Citi Personal Wealth Management in New
York.
Bets of another interest rate cut by the Federal Reserve
have soared this week as U.S. factory activity contracted,
private sector hiring cooled and service sector activity fell.
Traders currently see a 76% chance for the central bank to
lower borrowing costs at its policy meeting later this month,
from 40% on Monday. The Fed had cut rates in September and said
that future reductions would be "data-dependent".
Still, a sharp selloff this week has put the S&P 500 on
course for its worst week in six, while the Dow was headed for
its biggest weekly drop in two months.
Shares of Apple Inc AAPL.O rose 1.9%, providing the
biggest boost to all three indexes, after a report that the
company would ramp up production of iPhone 11 models.
At 10:15 a.m. ET, the Dow Jones Industrial Average .DJI
was up 176.96 points, or 0.68%, at 26,378.00, the S&P 500 .SPX
was up 19.85 points, or 0.68%, at 2,930.48. The Nasdaq Composite
.IXIC was up 57.91 points, or 0.74%, at 7,930.18.
HP Inc HPQ.N tumbled 8.7% after the PC maker said it would
cut up to 16% of its workforce as part of a restructuring plan
that would result in an overall charge of $1 billion.
Investors will also keep an eye on U.S. central bank chief
Jerome Powell's remarks on Friday for clues on what the Fed
would do at its policy meeting later this month. He is due to
speak at 2:00 p.m. ET (1800 GMT) in Washington.
Advancing issues outnumbered decliners by a 1.74-to-1 ratio
on the NYSE and a 1.55-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and one new low,
while the Nasdaq recorded six new highs and 23 new lows.