U.S. Stocks Rise as Jobs Data Fuels Optimism of Stimulus

U.S. stocks rose, sending the Standard & Poor’s 500 Index higher for the week, as a weaker-than-estimated jobs report eased concern that the Federal Reserve may accelerate the pace of stimulus cuts.

Companies that pay the highest dividends such as utility and phone stocks advanced as bond yields slipped, boosting the allure of equity income. Alcoa Inc. (AA) dropped 5.4 percent after profit missed estimates. 

Sears Holdings Corp. plunged 14 percent as it forecast a fourth-quarter loss and said sales during the holiday period dropped. Chevron Corp. slid 1.9 percent after saying earnings suffered as energy output declined.

The S&P 500 rose 0.2 percent to 1,842.37 at 4 p.m. in New York, after falling as much as 0.3 percent earlier in the day. The benchmark index added 0.6 this week, paring its drop in 2014 to 0.3 percent. The gauge climbed 30 percent last year, the most since 1997. The Dow Jones Industrial Average dropped 7.71 points, or 0.1 percent, to 16,437.05. About 6.6 billion shares changed hands on U.S. exchanges, 8.8 percent above the three-month average.

(Source: Bloomberg)