Wall Street cheers weak jobs report

Stocks climbed on Wall Street Tuesday following a weaker than expected jobs report.

The Wall Street cheers a weaker than expected jobs report as renewed expectations that the Federal Reserve will stimulate the economy into next year sends US stocks soaring.

Stocks held gains Tuesday afternoon with the S&P 500 at a record intraday high, adding 10 points, or 0.5 percent, to 1754.

The Dow Jones Industrial Average was up 63 points, or 0.4 percent, to 15456 in mid-afternoon trade, after gaining as much as 126 points earlier in the session.

The Nasdaq Composite added 21.44 points or 0.55 percent, to 3,941.489.

The government’s jobs report released on Tuesday showed employers added 148,000 jobs to the economy last month, below expectations for a gain of 180,000.

The Federal Reserve’s easy money policy has been a key factor in stocks’ rally as it has kept borrowing costs low.

Given the sluggish economic recovery and tepid job growth, Wall Street traders hope the Fed will not scale back its easy-money policies this year and will maintain its stimulus measures into 2014.

“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.

“If people are expecting a Fed taper in December, they may not find that under the Christmas tree. Instead, it might be January or March,” he was quoted as saying by Reuters.

The Fed is expected to maintain its $85 billion a month in bond purchases.

Tuesday’s report also contained revisions to the jobs numbers released for July and August. The July employment gains were revised down from 104,000 to 89,000, the weakest since June 2012. August jobs number was revised from 169,000 to 193,000.

HJ/HJ

Source: Press TV