US STOCKS-S&P 500 rises after solid jobs report

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* Costco drops after profit miss
* Banks rally after nonfarm payrolls report
* Indexes: Dow up 0.2%, S&P rises 0.1%, Nasdaq down 0.3%

(Updates to market open)
By Medha Singh and Shashank Nayar
March 5 (Reuters) - The S&P 500 edged higher in choppy
trading on Friday after a three-day slide, as data showing
faster-than-expected monthly jobs growth reinforced bets on an
economic rebound driven by massive fiscal stimulus and
vaccination drives.
Nonfarm payrolls surged 379,000 jobs last month after rising
166,000 in January. Economists polled by Reuters had forecast a
rise of 182,000 jobs. After the data, the benchmark 10-year U.S. Treasury yields
US10YT=RR hit a new one-year high of 1.626%. Rate-sensitive
bank stocks .SPXBK rose about 1.6% on prospects of an improved
economic outlook.
All major S&P 500 sectors rose, led by gains in energy
.SPNY and financials .SPSY stocks.
"It shows the reopening is on track and occurring faster
than we thought," said Tim Ghriskey, chief investment strategist
at Inverness Counsel in New York.
"The consensus is that stimulus is necessary to kickstart
the economy and to strengthen the recovery."
A sharply divided U.S. Senate will begin a contentious
debate on Friday on a $1.9 trillion coronavirus aid bill that is
President Joe Biden's first major legislative initiative.
Federal Reserve Chair Jerome Powell on Thursday offered an
optimistic view of the labor market, but cautioned a return to
full employment this year was "highly unlikely." Powell's comments disappointed many investors who expected
moves to rein in a recent jump in the U.S. 10-year Treasury
yield US10YT=RR that has set the Nasdaq on course for its
third straight weekly decline.
The tech-heavy Nasdaq on Thursday wiped off all of its gains
for 2021 and stopped short of ending 10% below its Feb. 12
closing high that would confirm a correction.
The Russell 1000 value index .RLV , which is heavily
comprised of cyclical stocks such as financials and energy
jumped about 1%, while the Russell 1000 growth index .RLG ,
which includes technology stocks, slipped about 0.1%.
At 9:53 a.m. ET, the Dow Jones Industrial Average .DJI
rose 74.48 points, or 0.24%, to 30,998.62 and the S&P 500 .SPX
gained 5.13 points, or 0.14%, to 3,773.60.
The Nasdaq Composite .IXIC lost 36.96 points, or 0.29%, to
12,686.52, weighed down by a near 6% fall in Tesla Inc TSLA.O
shares.
Costco Wholesale Corp COST.O dropped 1.5% after the
warehouse club operator missed estimates for second-quarter
profit. Norwegian Cruise Line Holdings Inc NCLH.N slumped about 6%
on a $1.6 billion stock sale. Advancing issues outnumbered decliners by a 1.5-to-1 ratio
on the NYSE and by a 1.1-to-1 ratio on the Nasdaq.
The S&P 500 posted 25 new 52-week highs and no new lows,
while the Nasdaq recorded 85 new highs and 52 new lows.