* Hiring points to economy still in need of Fed's help
* Nonfarm payrolls up 175,000 in May; jobless rate 7.6 pct
* TiVo shares tumble after $490 mln settlement with Motorola
* Indexes up: Dow 1.1 pct, S&P 1 pct, Nasdaq 0.8 pct
By Angela Moon
NEW YORK, June 7 U.S. stocks rose on Friday,
setting the Dow and the S&P 500 indexes on track for a weekly
gain, after a jobs report suggested the economy still needs the
Federal Reserve's support, soothing some concerns that the Fed
might end its stimulus efforts sooner than expected.
The U.S. nonfarm payrolls report showed moderate growth in
the labor market in May, but not enough forward momentum to
suggest that the Fed will put the brakes on its bond-buying
program in the near future.
The S&P 500 has advanced about 15 percent so far this year,
partly on the belief the Fed's stimulus would remain in place.
But for the past few weeks, investors had gotten
increasingly concerned about the longevity of the Fed's stimulus
and over a still-sluggish global economy. Market volatility shot
up with the S&P 500 rising and falling more than 1 percent in
both directions in a single trading session on some days.
The Labor Department said 175,000 jobs were added in May,
just above the median forecast of economists in a Reuters poll,
while the unemployment rate ticked up slightly to 7.6 percent,
with the increase giving a relatively hopeful sign as it was
driven by more workers entering the labor force.
"From the equity market perspective it's (nonfarm payrolls
numbers) just about in that sweet spot where it's strong enough
that you're not really worried about the economy," but "it's not
so strong you now start to worry about the Fed getting more
aggressive in the taper," said Russ Koesterich, global chief
investment strategist at BlackRock in a media call.
"It should help equity markets quiet down a little bit in
the near term."
Ahead of the release of the jobs report on Friday, former
Fed Chairman Alan Greenspan said on CNBC a gradual withdrawal of
economic stimulus was "adequate, but we have to get moving."
The Dow Jones industrial average was up 163.03
points, or 1.08 percent, at 15,203.65. The Standard & Poor's 500
Index was up 15.35 points, or 0.95 percent, at 1,637.91.
The Nasdaq Composite Index was up 26.80 points, or 0.78
percent, at 3,450.85.
Equities seemed to be cheering the near-term impact of the
jobs report after trading lower for most of the week on worries
the Fed may reduce its stimulus. While stocks rallied, the
Treasury market showed a contrasting move with debt prices
falling on revived bets the Fed might pare bond purchases later
For the week, the S&P 500 was up 0.5 percent, the Dow was up
0.6 percent while the Nasdaq was off 0.1 percent.
Gains were broad, with cyclical sectors like industrials and
energy stocks among the top gainers. S&P industrial sector index
was up 1.5 percent while the energy sector index
rose 1 percent.
According to Koesterich, with the market eventually getting
ready to anticipate some change in real rates, defensive names
like utilities will come under pressure as they have benefited
the most from the unusual monetary accommodation.
"In an environment where things are beginning to normalize,
I think the allocation is to avoid overpaying for some of those
defensive names and have a broader allocation and particularly
with a little bit more of a tilt to the cyclical," he said.
In company news, video recorder pioneer TiVo Inc
said it would receive $490 million after settling a patent
lawsuit with Google Inc's Motorola Mobility, Cisco
Systems Inc and Time Warner Cable Inc, days
before the case was to go to trial. TiVo shares fell 17.5
percent to $11.31.
Wal-Mart Stores Inc said on Friday its board had
approved a new $15 billion stock repurchase program, the first
in two years. The stock, up 1.3 percent at $76.62, was among the
top gainers on the Dow index.
George Soros's firm, Soros Fund Management, which manages
$24 billion of the investor's cash, sold much of its Japanese
stock position in May, before the recent, steep selloff,
according to a person close to the matter.