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Jobs report, Intel outlook leave US traders optimistic

Stocks rose on Friday as Intel Corp's positive outlook lifted the technology sector, and a strong jobs report and lower oil prices boosted investors' confidence about the US economy.

The blue-chip Dow and broader Standard & Poor's 500 index rose for the second week in a row, but the technology-filled NASDAQ fell for the week.

The markets got a boost as NYMEX crude oil futures ended down 2.1 percent at US$38.45 a barrel, settling below US$40 for the third consecutive day, in a sell-off after OPEC's agreement to raise output quotas and a rise in US crude and gasoline inventories.

A Labor Department report before the market opened showed US employers added 248,000 jobs in May, a tally that exceeded Wall Street's expectations of a 216,000 rise and signaled a strengthening economy.

THE INTEL FACTOR

Intel, the world's largest computer chip maker, added to the optimism with a forecast late on Thursday that second-quarter revenue may be better than previously expected.

"Oil down 2 percent is certainly helping equities worldwide," said Tom Schrader, managing director of US equity trading at Legg Mason Wood Walker.

"The fact that our economic numbers came out stronger than expected is helping equities here in the US. Intel's comments last night after the bell are helping the tech market, which is helping the broader market," Schrader said.

The Dow Jones Industrial Average rose 46.91 points, or 0.46 percent, to 10,242.82. The Standard & Poor's 500 Index gained 5.87 points, or 0.53 percent, to 1,122.51. The technology-focused NASDAQ Composite Index added 18.36 points, or 0.94 percent, to 1,978.62.

Trading was light, with 1.12 billion shares changing hands on the New York Stock Exchange, well below the 1.4 billion daily average for last year. About 1.41 billion shares were traded on NASDAQ, below the 1.69 billion daily average last year.

Advancers outnumbered decliners on the NYSE and NASDAQ by 2 to 1.

For the week, the NASDAQ slipped 0.41 percent, while the Dow rose 0.54 percent and the S&P 500 added 0.16 percent.

The strong jobs data helped to make the case that the Fed will raise interest rates at its June 29 to June 30 meeting, many analysts said, but they added the rate hike is already priced into the stock market.

ECONOMIC EXPANSION

"The jobs report just confirms that we are in a very solid economic expansion," said Frederic Dickson, market strategist at fund firm DA Davidson & Co.

"We should feel very comfortable about consumer spending continuing to a be a big contributor to the economy going into the fall," Dickson said.

The lower oil prices helped oil-sensitive stocks like airlines. Delta Air Lines Inc rose US$0.05 to US$5.76 and Southwest Airlines added US$0.26, or 1.7 percent, to US$15.60.

Intel led stocks higher, rising US$0.73, or 2.7 percent, to US$28.14.

Semiconductor maker Texas Instruments Inc and networking equipment maker Cisco Systems Inc were up after Intel's report.

Electronics giant Texas Instruments rose US$0.87, or 3.6 percent, to US$25.21 and Cisco added US$0.43, or 1.9 percent, to US$22.78.

The Philadelphia Stock Exchange Semiconductor Index was up 1.6 percent.

Wal-Mart Stores Inc shares slipped after the largest US private-sector employer promised to give raises to some of its workers, including 1.3 million US employees.

The world's biggest retailer called on employees to counter critics who say Wal-Mart mistreats its staff.

Its shares fell US$0.01 to US$56.69.

General Mills rose US$2.20, or 4.8 percent, to US$47.85 on reports that the food company may be the target of a US$22 billion bid by Nestle SA but Nestle said it has no plans for a major transaction.
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