By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market moves higher on
Friday as investors examine the details of the jobs report and find
a silver lining in an otherwise disappointing headline number.
The 113,000 new jobs added in January fell far short of
forecasts, while the unemployment rate ticked down and the labor
force participation rate edged up, according to the Commerce
Department.
Investors found an upbeat earnings report from Expedia Inc
(EXPE) encouraging.
The S&P 500 (SPX) rose 10 points, or 0.6%, to 1,783.92,
building on the previous day's gains. The benchmark index is set to
finish the week mostly flat after sharp drops during the volatile
week.
The Dow Jones Industrial Average (DJI) rose 50 points, or 0.4%,
to 15,692, also on track to end the week roughly where it started
it.
The Nasdaq Composite (RIXF) added 27 points, or 0.8%, rising to
4,090 and trimming weekly losses. Follow our stock market live
blog.
"The top line in the jobs report was weak but the details had
many positive aspects," said Paul Zemsky as chief investment
officer of Multi-Asset Strategies at ING U.S. Investment
Management.
"The household survey side of the report, which we think leads
the businesses survey, was far stronger at 638,000 -- there is a
big discrepancy, so we believe the labor market is stronger than
what the headline number suggests," Zemsky said.
"Also, that fact that the unemployment rate fell and labor force
participation rose is a good sign," he added.
Details in the report, including an increase in aggregate hours
worked and average weekly earnings, signaled a "reduction in labor
market slack," said Millan Mulraine, deputy head of U.S. research
and strategy at TD Securities.
Wall Street saw the best gains in seven weeks on Thursday
following a bigger-than-expected drop in weekly jobless claims and
some upbeat earnings.
Adding to the positive sentiment were upbeat earnings from
Expedia Inc. (EXPE). Shares surged 14% after the company reported a
profit that surged on a favorable comparison with a year earlier,
as revenue rose.
Shares of Activision Blizzard Inc. (ATVI) jumped 11.6%. The
videogame company reported a 51% decline in fourth-quarter profit
late Thursday, but shares strengthened as adjusted results beat
expectations
Apple Inc. (AAPL) shares rose 1.6% when it emerged that the
company bought $14 billion of its own shares in the two weeks since
reporting results that left investors disappointed.
Shares of LinkedIn Corp. (LNKD) fell 9.2% after the social
network for professionals posted a weak outlook, though
fourth-quarter results topped analysts' forecasts late Thursday.
Shares fell more than 8% in late trade.
In other markets, European stocks moved higher after the U.S
jobs data, while Asia took inspiration from Wall Street and closed
broadly higher. The dollar shrugged off most losses Friday sparked
by data showing the U.S. economy added fewer jobs than expected in
January, as investors looked past the weak headline number to the
details.
Gold trimmed gains, while oil prices and natural gas rose.
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