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* Apple rises on report of ramp up in iPhone production
* Nonfarm payrolls increase by 136,000 in Sept
* HP Inc falls after announcing $1 bln charge from
restructuring
* S&P 500 heads for best day in a month
* Indexes up: Dow 0.90%, S&P 0.95%, Nasdaq 0.98%
(Adds details, updates prices)
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.
A rally in technology stocks led by Apple Inc also helped
lift Wall Street's main indexes at the end of a volatile week.
After losing about 3% earlier this week, the S&P 500 was on
course for its best day in a month on Friday.
The Labor Department's report showed nonfarm payrolls
increased by 136,000 last month and unemployment rate dropped to
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 interest rate cuts by the Fed soared this week after
a dramatic contraction in U.S. factory activity, cooling private
sector hiring and a fall in service sector activity evidenced
the fallout from a prolonged U.S.-China trade war.
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 for the second time this
year and said that future reductions would be "data-dependent".
The S&P had gapped lower on Wednesday after bleak
manufacturing data. On Friday, the index recovered to trade near
its Tuesday close.
The benchmark index is now 3% away from its record high hit
in July after coming within striking distance of it two weeks
Apple Inc AAPL.O shares rose 2.4% after a report that the
company would ramp up production of iPhone 11 models.
The broader technology sector .SPLRLCT was up 1.34%,
rising the most among 11 major S&P sectors. The Philadelphia
chip index .SOX advanced 1.32%.
At 11:52 a.m. ET, the Dow Jones Industrial Average .DJI
was up 236.56 points, or 0.90%, at 26,437.60, the S&P 500 .SPX
was up 27.56 points, or 0.95%, at 2,938.19. The Nasdaq Composite
.IXIC was up 77.00 points, or 0.98%, at 7,949.27.
HP Inc HPQ.N tumbled 9.6% 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.
Advancing issues outnumbered decliners by a 2.05-to-1 ratio
on the NYSE and a 1.48-to-1 ratio on the Nasdaq.
The S&P index recorded 12 new 52-week highs and one new low,
while the Nasdaq recorded 11 new highs and 51 new lows.