* October payrolls well above expectations
* Santarus jumps on buyout deal
* Disney falls after earnings
* Indexes up: Dow 0.10 pct, S&P 0.21 pct, Nasdaq 0.51 pct
By Chuck Mikolajczak
NEW YORK, Nov 8 U.S. stocks rose on Friday,
shaking off the initial selloff in futures after an unexpectedly
strong payrolls report increased chances the Federal Reserve
could begin to scale back its stimulus before the end of the
Employers added 204,000 new jobs last month, the Labor
Department said on Friday. The unemployment rate, however, rose
to 7.3 percent from September's nearly five-year low of 7.2
percent. Expectations called for payrolls rising 125,000 in
The stronger than expected data, coupled with Thursday's
better-than-expected GDP growth, raised expectations the Federal
Reserve will begin to trim its bond-buying program of $85
billion a month earlier than anticipated.
"This is a shockingly impressive number," said Cameron
Hinds, Regional CIO for Wells Fargo Private Bank in Omaha,
"Eventually we truly need to have good news and the market
take it as good news to propel the market substantially higher."
The benchmark S&P index is up 22.7 percent for the year,
with gains largely driven by the Fed's stimulus.
Other economic data showed consumer spending rose 0.2
percent after advancing 0.3 percent in August, in line with
But the Thomson Reuters/University of Michigan's preliminary
reading on consumer sentiment fell to 72.0 in November, its
lowest since December 2011 and below both October's final
reading of 73.2 and the 74.5 forecast.
The Dow Jones industrial average rose 15.09 points or
0.1 percent, to 15,609.07, the S&P 500 gained 3.66 points
or 0.21 percent, to 1,750.81 and the Nasdaq Composite
added 19.595 points or 0.51 percent, to 3,876.927.
Santarus Inc surged 37.6 percent to $31.95 after
Salix Pharmaceuticals Ltd agreed to buy the drugmaker
for about $2.6 billion.
Walt Disney Co rose 0.7 percent to $67.60 after
posting quarterly results.