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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 on $1 bln restructuring charge
* S&P 500, Dow track best day in a month
* Indexes up: Dow 0.90%, S&P 0.92%, Nasdaq 0.94%
(Updates to early afternoon)
By Medha Singh
Oct 4 (Reuters) - U.S. stocks climbed 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 world's largest economy was sliding
into a recession.
A rally in technology stocks led by Apple Inc AAPL.O also
helped lift Wall Street's main indexes at the end of a volatile
week. After losing about 3% on Tuesday and Wednesday, the S&P
500 .SPX and Dow .DJI were on course for their 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 have surged this week
after a dramatic contraction in U.S. manufacturing, 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 77.5% chance for the central bank to
lower borrowing costs at its policy meeting later this month, up
from 40% on Monday.
The Fed cut rates in September for the second time this year
and said future reductions would be "data-dependent".
The S&P had gapped lower on Wednesday after bleak
manufacturing data, but Friday's gains have helped the index
climb back to 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 .SPLRCT was up 1.26%, rising
the most among 11 major S&P sectors. The Philadelphia chip index
.SOX advanced 1.18%.
At 12:59 p.m. ET (1659 GMT), the Dow Jones Industrial
Average .DJI was up 235.82 points, or 0.90%, at 26,436.86 and
the S&P 500 .SPX was up 26.80 points, or 0.92%, at 2,937.43.
The Nasdaq Composite .IXIC was up 73.81 points, or 0.94%, at
7,946.08.
HP Inc HPQ.N tumbled 9.2% 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 2.12-to-1 ratio
on the NYSE and 1.59-to-1 ratio on the Nasdaq.
The S&P index recorded 13 new 52-week highs and one new low,
while the Nasdaq recorded 13 new highs and 57 new lows.