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Tepid US employment data stokes Fed stimulus hopes

US stocks rise as hiring slowdown is seen as keeping stimulus going; Delta, Whirlpool gain

In this Wednesday, Oct. 9, 2013 photo, trader David O'Day, center, works on the floor of the New York Stock Exchange. Stock futures are mixed, Tuesday...

Wall Street Premarket

In this Wednesday, Oct. 9, 2013 photo, trader David O'Day, center, works on the floor of the New York Stock Exchange. Stock futures are mixed, Tuesday...

NEW YORK (AP) -- Stocks gained in early trading Tuesday as investors bet that the Federal Reserve would keep up its economic stimulus for longer after the government reported a slowdown in hiring last month.

Whirlpool, Delta Air Lines and Netflix rose sharply after reporting higher earnings.

The U.S. economy added 148,000 jobs in September, the Labor Department said. That suggests employers held back on hiring before a 16-day partial government shutdown began Oct. 1. Economist surveyed by data provider FactSet had predicted 180,000 jobs would be added.

September's job report was delayed 2 ? weeks because of the shutdown, which may have further depressed economic growth and hiring. Analysts are also expecting the coming October's job report to be weak because of the impact of the shutdown.

"We've probably got another relatively soft report ahead of us," said Jeff Kleintop, Chief Market Strategist for LPL Financial. "That's likely to keep the Fed on hold for some time and the market seems to like that."

The Federal Reserve has been buying $85 billion of bonds a month to keep long-term interest rates low and spur economic growth. The central bank's stimulus has been a key support for a 4 ?-year rally in stocks.

The Standard & Poor's 500 index rose 11 points, or 0.6 percent, to 1,755 in the first half-hour of trading. The index is trading at a record level, after rebounding from a slump before lawmakers reached a deal last week to end the government shutdown and avert a potential default on U.S. debt.

The Dow Jones industrial average rose 90 points, or 0.6 percent, to 15,483. The Nasdaq composite rose 19 points, or 0.5 percent, to 3,938.

In government bond trading, the yield on the 10-year Treasury note fell to 2.54 percent from 2.60 percent, its lowest level since late July. The yield on the note has fallen as traders have pared back their expectations for the start of Fed easing.

In commodities trading, the price of crude oil edged up 46 cents to $100.13 a barrel. The price of gold rose $13.50, or 1 percent, to $1,329.30 an ounce.

Among stocks making big moves:

-- Netflix rose $13.89, or 4 percent, to $369.61 after the company said late Tuesday that it added 1.3 million U.S. subscribers during its most recent quarter. The company's profit of 52 cents per share beat Wall Street predictions of 48 cents, while revenue rose 22 percent to match predictions of $1.1 billion.

-- Whirlpool rose $12.66, or 10 percent, to $143.80 after the company said its third-quarter net income more than doubled, benefiting from some tax credits as consumer demand for its appliances continues to build amid the housing recovery.

-- Delta Air Lines rose $1.32, or 5 percent, to $26.01. The airline made more than a billion dollars in the third quarter as more passengers paid a little bit extra to fly. Delta also said it was seeing strong holiday bookings.

-- Coach fell $3.85, or 7.2 percent, to $50.29 after the maker of luxury handbags and accessories said its net income fell 2 percent in its fiscal first quarter as the company dealt with weaker sales in North America. The earnings fell short of analysts' expectations.

Updated : 2021-07-24 13:51 GMT+08:00