* Zynga shares slide after warning, Facebook slips
* Sprint could counterbid on PCS -sources
* Indexes up: Dow 0.4 pct, S&P 0.4 pct, Nasdaq 0.3 pct
By Rodrigo Campos
NEW YORK, Oct 5 The Dow Jones industrials index
climbed to its highest level in nearly 5 years on Friday, after
a surprise drop in the unemployment rate pointed to continued
improvement in the U.S. labor market.
The S&P 500 rose for a fifth straight day and was also on
course to close near a 5-year high. The index has appreciated
nearly 17 percent so far this year, and is on track for its best
yearly gain since 2009, when stocks rebounded after the
Labor Department data showed the jobless rate dropped by 0.3
percentage point in September to 7.8 percent, its lowest since
January 2009, even as Americans came back into the labor force
to resume the hunt for work. A separate survey of households
found a big surge in hiring.
"What this suggests at the end of the day is that demand in
the United States will hold up reasonably well," said Kevin
Caron, market strategist at Stifel, Nicolaus & Co in Florham
Park, New Jersey. "It wasn't so strong that it upset the apple
cart for those that are looking for additional easing by the
The Dow Jones industrial average gained 58.52 points,
or 0.43 percent, to 13,633.88. The Standard & Poor's 500 Index
rose 5.88 points, or 0.40 percent, to 1,467.28. The
Nasdaq Composite Index added 8.92 points, or 0.28
percent, to 3,158.38.
Zynga shares plummeted 17.4 percent to $2.32 after
it slashed its 2012 outlook for a second time, fanning doubts
about its ability to shore up its dwindling earnings. Facebook
, which derives more than a tenth of its revenue from fees
paid by Zynga, saw its shares fall 1.7 percent to $21.57.
A survey of business establishments showed employers added
114,000 jobs to their payrolls last month while data for July
and August was revised to show 86,000 more jobs created than
"The household employment jumped up strongly. That's an
important move. These are not government jobs. It's an
impressive number," said Robbert van Batenburg, head of global
research at Louis Capital Markets in New York.
"This is a strong report any way you slice it. In the
financial markets, some people will question the validity of
this number so close to the presidential election."
The unemployment rate is a key focus in the U.S.
presidential election, and Friday's data could be a boon to
President Barack Obama's reelection bid.
Sprint Nextel is considering making a rival bid for
MetroPCS Communications, which agreed Wednesday to a
merger with Deutsche Telekom's T-Mobile USA,
according to people familiar with the situation.
Sprint Nextel rose 3 percent to $5.25, while MetroPcs gained
1.5 percent to $12.89.