Wall Street Rebounds After Weak Jobs Report

By THE ASSOCIATED PRESS September 5, 2014

The Standard & Poor's 500-stock index closed at a nominal high after a surge in dividend-rich utility stocks.

The stock market also got a lift from a cease-fire agreement between Ukraine and Russian-backed separatists, aimed at bringing an end to nearly five months of fighting.

The S.&P. 500 rose 10 points, or 0.5 percent, to close at 2,007 Friday. The Dow Jones industrial average gained 67 points, or 0.4 percent, to 17,137. The Nasdaq rose 20 points, or 0.5 percent, to 4,582.

Investors bought up utility stocks after the government reported that employers added fewer jobs than forecast for August. That boosted demand for bonds and pushed down their yields. In turn, stocks with big dividends became more attractive.

Interactive Feature | Standard & Poor's 500-Stock Index

SOFT PAYROLLS United States employers added 142,000 jobs in August, snapping a six-month streak of hiring above 200,000 and posting the smallest gain in eight months, the Labor Department said Friday. The unemployment rate fell to 6.1 percent from 6.2 percent, falling because more people without jobs stopped looking for one and were no longer counted as unemployed. Economists had expected employers to add 220,000 jobs.

THE QUOTE Some investors pointed out that Friday's news was at odds with reports earlier this week that showed the economy is still strengthening. Construction and the service industry, or example, were strong.

"The preponderance of evidence is that things continue to expand," said John Fox, director of research for Fenimore Asset Management. "This is a blip."

SAD SEPTEMBER Stocks have fallen during first four trading days of the month after ending August at a record high. September is historically the worst month, according to the stock traders' almanac.

GAP SALES Shares of Gap dropped 4.2 percent after reporting that a crucial sales measurement slumped in August. The retailer said sales at stores open at least one year fell 2 percent over the four weeks that ended Aug. 30. Revenue from Gap stores open over that time fell 6 percent. That will pressure the brand's profit margins in September.

STAKE SALE Michael Kors stock fell 4.5 percent after one of its principal founding stockholders said it was selling its remaining shares in the luxury retailer. Sportswear Holdings had a 5.7 percent stake in the company.

OVER THERE In Europe, most stock markets had been trading deep in the red up until the monthly nonfarm payrolls report, but soon recouped most of their losses after the release. In France, the CAC 40 edged 0.1 percent lower while the FTSE 100 in Britain retreated 0.5 percent. In Germany, the DAX gained 0.3 percent.

CURRENCIES A day after the euro tanked when the European Central Bank surprised markets by cutting interest rates and enacting a new stimulus program, Europe's single currency settled somewhat, trading up 0.1 percent at $1.2974. On Thursday, the euro fell to a 14-month low of $1.2920. The dollar was at 105.22 yen after rising as high as 105.71 yen, the highest level since October 2008, from 105.38 in late trading Thursday.

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