US stock markets have turned a weak jobs report into positive news, ending higher on expectations that the data will lead to new Federal Reserve efforts to help the economy.
The markets added to Thursday’s strong gains, with big mining companies surging on a jump in gold prices.
The Dow Jones Industrial Average closed up 14.64 points (0.11 per cent) at 13,306.64.
The S&P 500 gained 5.80 (0.40 per cent) at 1,437.92, while the tech-rich Nasdaq edged up 0.61 point (0.02 per cent) to 3,136.42.
The Labor Department’s report that a meagre 96,000 jobs were added last month, and that 368,000 people dropped out of the jobs market, convinced many that the Fed would have to act to boost growth in its policy meeting next week.
“Hopes for additional Fed stimulus measures were raised after employment growth remained weak in August,” Wells Fargo Advisors analysts said.
On the Dow, blue chips Alcoa and Caterpillar both jumped 3.9 per cent, while Kraft disappointed investors, falling 5.5 per cent as it unveiled a new marketing strategy ahead of splitting its US grocery arm from its international snacks business.
Mining stocks led the way as gold prices surged on the prospect of falling interest rates on both sides of the Atlantic and commodities giant Glencore jacked up its bid for mining group Xstrata.
Freeport McMoran leaped 8.5 per cent and Southern Copper 5.3 per cent.
US-traded shares of Xstrata surged 5.3 per cent, and those of Vale jumped 6.75 per cent.
Financials continued their Thursday gains helped by the prospect of lower interest rates.
Bank of America rose 5.4 per cent, Citigroup 3.1 per cent, Goldman Sachs 2.5 per cent and JPMorgan Chase 1.6 per cent.
On the Nasdaq, Intel shares lost 3.6 per cent after it cut its sales outlook for the third quarter and said it would revise its full-year forecast, citing weaker-than-expected demand.
Following suit, chip maker AMD lost 5.7 per cent and Micron Technology lost 3.8 per cent.
Pandora Media plunged 16.7 per cent after the Wall Street Journal reported that Apple is in talks to licence music for broadcast on a custom online radio.
Bond prices ended mixed.
The yield on the 10-year Treasury fell to 1.66 per cent from 1.67 per cent on Thursday, while the 30-year yield rose to 2.83 per cent from 2.80 per cent.
Bond yields move inversely to prices
