US STOCKS-Wall Street rises on rate-cut hopes, China tariff delay

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* Nonfarm payrolls increase 75,000 in May
* Traders boost bets on Fed rate cuts, starting in July
* U.S. gives Chinese exporters more time before higher
tariffs
* Indexes up: Dow 0.71%, S&P 0.78%, Nasdaq 1.02%

(Updates to open)
By Amy Caren Daniel and Sruthi Shankar
June 7 (Reuters) - U.S. stocks extended gains in a
broad-based rally on Friday, as a sharp slowdown in May domestic
job growth raised hopes of an interest rate cut, while the
United States' decision to delay tariffs on Chinese goods lifted
the mood.
A Labor Department report showed nonfarm payrolls increased
by 75,000 jobs last month, much smaller than the 185,000
economists polled by Reuters had forecast, suggesting the loss
of momentum in economic activity was spreading to the labor
market. "This is the type of read the doves will really take to, as
it supports the argument for cutting rates beyond politics or
trade issues, which were never part of the Fed's mandate to
begin with," said Mike Loewengart, vice-president of investment
strategy at E*Trade Financial in New York.
"Even though the number came in low, we're still creating
jobs, which supports the case that the economy is still
expanding, so the Fed will have to walk a really thin line."
The sign of cooling in the labor market led traders of
short-term interest rate futures to add to bets that the Federal
Reserve will start to cut rates in July and reduce them two more
times before the end of the year. MMT/
Expectations that the Fed would turn more accommodative to
blunt the impact of escalating trade tensions have set the S&P
500 .SPX to post its fourth straight sessions of gains and
also put the benchmark index on track for its first weekly gain
since May 3.
The interest-rate sensitive banking index .SPXBK dropped
0.47%, while the broader financial sector .SPSY fell 0.04%,
and was the only S&P sector trading lower.
U.S. officially granted Chinese exporters two more weeks to
get their products into the country before increasing tariffs,
according to a U.S. government notice posted online.
Tariff-sensitive Boeing Co BA.N and Caterpillar Inc
CAT.N rose about 1%, while industrial stocks .SPLRCI gained
0.52%.
On the tussle with Mexico, a senior White House official
said if talks continue to go well President Donald Trump could
decide not to move forward with the tariffs on Mexican imports
on Monday.
At 9:42 a.m. ET, the Dow Jones Industrial Average .DJI was
up 183.65 points, or 0.71%, at 25,904.31 and the S&P 500 .SPX
was up 22.23 points, or 0.78%, at 2,865.72. The Nasdaq Composite
.IXIC was up 77.49 points, or 1.02%, at 7,693.05.
The defensive consumer staples sector .SPLRCS , real estate
.SPLRCR and utilities .SPLRCU rose about 0.7%, the most
among the sectors.
Defensive stocks are seen as bond proxies and do poorly when
interest rates and bond yields are on the rise.
Beyond Meat Inc BYND.O shares surged 25.9% after the maker
of plant-based burgers and sausages said it expects to more than
double its revenue and report breakeven EBITDA this year.
Caesars Entertainment Corp CZR.O rose 3.7% after the Wall
Street Journal reported that the company was nearing a deal to
combine with rival Eldorado Resorts Inc ERI.O .
Advancing issues outnumbered decliners by a 4.49-to-1 ratio
on the NYSE and by a 2.46-to-1 ratio on the Nasdaq.
The S&P index recorded 95 new 52-week highs and no new low,
while the Nasdaq recorded 65 new highs and 27 new lows.