U.S. Stocks Extend Record in Week as Jobs Data Boost Fed Bets.

http://www.bloomberg.com/news/2014-09-05/u-s-stocks-extend-record-in-week-as-jobs-data-boost-fed-bets.html

U.S. stocks rose a fifth week, giving the Standard & Poor’s 500 Index (SPX) its longest rally this year, as investors speculated weaker jobs growth will prevent the Federal Reserve from raising rates sooner than anticipated.

European shares rallied for a fourth week after the region’s central bank boosted stimulus. Emerging-market equities advanced, led by Russia’s Micex Index, after Ukraine and rebels agreed to a cease-fire. Producers of consumer products led U.S. stocks higher, while energy shares sank as oil tumbled for the sixth time in seven weeks. Apple Inc. (AAPL) dropped the most since February after a competitor introduced new smartphones.

The S&P 500 rose 0.2 percent to a record 2,007.71, reversing losses on the final day after three straight declines. The Dow Jones Industrial Average (INDU) added 38.91 points, or 0.2 percent, to 17,137.36, ending the week less than one point from an all-time high. U.S. markets were closed on Sept. 1 for the Labor Day holiday.

“We’re still at a time when bad news is good news for the market as far as equities are concerned,” Lou Shaduk, managing director of equity trading at Stifel Nicolaus & Co. in Baltimore, said in an interview. “It still keeps the Fed in the game -- they’re not going to pull QE sooner than anticipated.”

The S&P 500 had rallied 3.8 percent in August to breach the 2,000 level for the first time on speculation that the Fed will keep interest rates low even as the economy shows signs of picking up.

obs Data

Bets on continued Fed support got a boost during the final session as data showed the economy added 142,000 jobs in August and the unemployment rate fell to 6.1 percent. The hiring data was weaker than estimated by economists in a Bloomberg survey and underpinned Chair Janet Yellen’s view that “underutilization of labor resources still remains significant.”

The Fed is gauging the strength of the labor market as it winds down a bond-buying program and considers the timing of raising interest rates. Policy officials next meet Sept. 16-17.

While the Fed is trimming its bond-buying program known as quantitative easing, the European Central Bank unexpectedly lowered its key interest rates this week and announced an asset-buying plan.

The Stoxx Europe 600 added 1.6 percent for a fourth week of advances, the best streak since June.Germany’s DAX Index (DAX) jumped 2.9 percent, the most since March, while France’s CAC 40 Index rose 2.4 percent.