PRESS DIGEST- Wall Street Journal - Oct 26
Oct 26 The following are the top stories in the Wall Street Journal. Reuters has not verified these stories and does not vouch for their accuracy.
* Data show U.S. jobs growth lost momentum last month
* Fed seen unlikely to taper stimulative policy this year
* Netflix turns lower, brings down Nasdaq
* Indexes up: Dow 0.4 pct, S&P 0.4 pct, Nasdaq 0.03 pct
By Julia Edwards
NEW YORK, Oct 22 U.S. stocks climbed on Tuesday, with the S&P 500 at a record intraday high, after weaker-than-expected job creation last month validated expectations the Federal Reserve will maintain its economic stimulus into next year.
The Nasdaq pared some of its earlier gains as some of the year's biggest winners, including Netflix Inc, reversed course during trading to move lower.
"The most volatile sector, in terms of risk and return, is going to be the technology sector," said Jon Smith, chief investment officer at DT Investment Partners. "You can never necessarily tell exactly what is going to happen in the tech story in general."
U.S. employers added 148,000 workers last month, well below the 180,000 economists had expected. The data is seen as supporting the Fed's decision to maintain its $85 billion in monthly bond purchases, which has helped stocks rally in 2013.
The Nasdaq was volatile after reaching its highest level since the 2000 tech bubble on Monday. Netflix shares fell 4.4 percent to $330.30, reversing the rise that followed the release of the company's earnings report on Monday. Volume in the stock spiked as it fell into negative territory on the day. With more than 15 million shares traded, volume was nearly five times the average over the last 50 days.
Apple was the biggest drag on the Nasdaq, down 4.8 percent to $516.50, on the day the company is expected to introduce a new line of iPads.
The Dow Jones industrial average was up 60.79 points, or 0.39 percent, at 15,452.99. The Standard & Poor's 500 Index was up 6.86 points, or 0.39 percent, at 1,751.52. The Nasdaq Composite Index was up 1.26 points, or 0.03 percent, at 3,921.31.
The S&P earlier hit a record intraday high at 1,759.33.
Many economists think the Fed will hold off on scaling back its easy money policy, which has kept borrowing costs low, until next year.
"The September numbers vindicate the Fed's decision to postpone tapering, said Brian Jacobsen, chief portfolio manager at Wells Fargo Funds Management in Menomonee Falls, Wisconsin.
Payroll figures for August were revised higher and the September unemployment rate ticked down to 7.2 percent from 7.3 percent.
Transocean shares rose 5.2 percent to $49.00 after S&P Dow Jones Indices announced the drilling services company will replace Dell on the S&P 500 index after the close of trading next Monday.
Shares of cloud software maker VMware Inc rose 5.7 percent to $87.36 a day after it reported a higher-than-expected quarterly profit.
High-end handbag maker Coach fell 7.8 percent to $49.95 after it posted smaller-than-expected quarterly revenue.
NEW YORK, Oct 26 The credit quality of U.S. states is dropping as a result of flagging revenue growth, even as the national economy continues to expand, according to a report due on Wednesday from global investment management firm Conning Inc.
* Kirin says in talks for cooperation in distribution, procurement