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US STOCKS-Wall Street climbs in early trading after jobs report
June 7, 2013 / 2:00 PM / 4 years ago

US STOCKS-Wall Street climbs in early trading after jobs report

* Hiring points to economy still in need of Fed’s help

* Nonfarm payrolls up 175,000 in May; jobless rate 7.6 pct

* Fed must “get moving” on withdrawing stimulus-Greenspan

* Indexes up: Dow 0.4 pct; S&P 0.3 pct; Nasdaq 0.2 pct

By Angela Moon

NEW YORK, June 7 (Reuters) - U.S. stocks rose on Friday 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 13 percent so far this year, partly on the belief the Fed’s stimulus would remain in place.

But trading has become significantly more volatile over the past couple of weeks, reflecting investors’ concerns over the longevity of the Fed’s stimulus program and over a still-sluggish global economy.

“The employment report does not look too bad after all, which should soothe recent concerns over a slowing for the U.S. economy in response to domestic fiscal policy and external headwinds,” said Andrew Wilkinson, chief economic strategist at Miller Tabak & Co in New York.

At the same time, the report “is likely to further soothe bond tapering fears amongst the investment community as well as at the Fed.”

On Friday, Alan Greenspan, former chairman of the Federal Reserve, said on CNBC that a gradual withdrawal of economic stimulus was “adequate, but we have to get moving.”

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.

The Dow Jones industrial average was up 55.56 points, or 0.37 percent, at 15,096.18. The Standard & Poor’s 500 Index was up 5.22 points, or 0.32 percent, at 1,627.78. The Nasdaq Composite Index was up 6.97 points, or 0.20 percent, at 3,431.03.

Gains were broad across all sectors, with consumer staples and financial stocks leading in morning trading. The consumer staples index on the S&P 500 was up 0.8 percent while the financials sector index rose 0.4 percent.

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 16 percent to $11.50.

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 1.5 percent at $76.72, 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 sell-off, according to a person close to the matter.

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