The S&P 500 closed at 2,073, up 13 points or 0.6% on the day, notching its biggest weekly gain in a month, despite oil prices turning south and taking the share prices of energy down with them.
The March jobs report was essentially benign (see below) although some commentators saw trouble ahead.
“Average earnings gained 0.3% month-over-month, stronger than the 0.2% expected. The positive data belies a worrying trend beneath the surface as manufacturing jobs dropped by the biggest amount since 2009. It the low-paid service jobs which are replacing high-skilled manufacturing jobs that goes a long way to explain the sluggish US wage growth,” suggested Jasper Lawler at spread betting firm CMC Markets.
The mid-cap S&P 400 rose six ooints, ot 0.4% to 1452, while the small-cap measure, the Russell 2,000, climbed four points (0.3%) at 1,118.
Mid-session
US stocks are sleeping their way into the weekend, despite the catalyst of March's jobs figure.
“The March Employment Report was solid, with a very healthy 215,000 gain in establishment payrolls, a 0.3% rise in wages, and a tick up in the unemployment rate to 5.0% reflecting a large increase in the Household Survey’s labor force (+396,000), employment (+246,000) and unemployment (+151,000), and as a result another monthly rise in both the labor force participation rate and the employment-to-population ratio,” wrote Mickey Levy of German bank Berenberg.
The blue-chip benchmark, the S&P 500, was up seven points (0.3%) at 2,066 in lunchtime trading, but outside of the blue-chips the picture was mixed. The mid-cap S&P 400 was a point softer at 1,444, and the small-cap index, the Russell 2,000, was also off a point, at 1,113.
Proceeds from the sale of its 59% interest in Rentech Nitrogen Partners has allowed Rentech Inc (NASDAQ:RTX) to retire some $42mln of senior debt, cutting back future interest payments and giving it more firepower to maximize its investment in the wood fibre processing industry.
The company trousered $262mln from the sale, sparking a 20% rise in the share price to $2.67.
Also on the up was Regeneron Pharmaceuticals Inc (NASDAQ:REGN), after it revealed that the experimental drug it developed with Sanofi for a debilitating skin condition called atopic dermatitis met all of its major treatment targets in two late-stage studies.
The shares rose 13% to $408.27 as the company hailed “a key step in advancing a potential blockbuster medicine toward the market”.
Open
Shares opened modestly lower despite a better-than-expected jobs figure for March.
Non-farm payrolls rose by 215,000 in March, topping expectations of a 205,000 rise, while February’s increase was revised up from 242,000 to 245,000.
“Although the unemployment rate rose to 5.0%, up from an eight-year low of 4.9%, this was in part due to more people entering the labour market. At 63%, the participation rate was the highest since March 2014,” noted Chris Williamson at Markit.
“However, while the labour market data shout ‘rate hike’, signs of a worrying weakness in the pace of economic growth at home and abroad caution against the Fed rushing into any further tightening of policy,” Williamson suggested.
The benchmark S&P 500 index was down a shade after an hour's trading, at 2,056, down four points to 0.2%.
Its baby brother, the S&P 400, which tracks mid-caps, was off eight points (0.6%) at 1,437 while the small-cap measure, the Russell 2,000, was also down eight points (0.7%), at 1,107.
On the Nasdaq exchange, Cardiovascular Systems Inc (NASDAQ:CSII) was setting the pace after strong then expected fiscal third quarter numbers.
The medical device maker said revenue for the January – March quarter is expected to come in at around $43.5mln to $44mln, which represents an improvement on previous guidance of $40.5mln to $42mln.
Investors headed for the exit at Rovi Corporation (NASDAQ:ROVI) after the digital entertainment company sued Comcast Corporation (NASDAQ:CMSA), the media and technology company.
Rovi asserts infringement by Comcast, together with its set-top box suppliers, of 14 US patents that together deliver the most important features to Comcast customers.