By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks gained on Tuesday, further
propelling the S&P 500's record rise, as the September
nonfarm-payrolls report supported the notion that the Federal
Reserve's monthly bond purchases would continue into next year.
"The numbers just don't support a taper. The Fed will look to
continue their bond-purchasing program well into 2014," Chris
Gaffney, a senior market strategist at Everbank, said about the
data, which showed the U.S. economy creating 148,000 jobs last
month, fewer than expected.
The jobs report means "the Fed is likely going to stay with us
through the holiday season; they'll be with us for the holiday
dinner and probably be celebrating the New Year with us," agreed
Darrell Cronk, regional chief investment officer at Wells Fargo
Private Bank.
Treasury yields and the dollar fell, while gold climbed.
"When we have more stimulus that means the printing presses at
the Treasury are printing more dollars, which forces the value of
the dollar lower; gold is starting to move back up, as more and
more stimulus could have an inflationary impact on the U.S.
economy. That's why gold is having a bid here," said Everbank's
Gaffney.
The Dow Jones Industrial Average (DJI) rose 52.36 points, or
0.4%, to 15,444.56.
The S&P 500 index (SPX) climbed 6.88 points, or 0.4%, to
1,751.54, with the material and consumer-discretionary sectors
pacing gains that involved all but technology of its major industry
groups.
Netflix Inc. (NFLX) turned lower, off 4.5%, a day after the
video-subscription service reported results that topped Wall Street
estimates.
Coach Inc. (COH) fell 7.7% after reporting revenue beneath
expectations. Delta Air Lines Inc. (DAL) rose 3.8% after the
carrier's quarterly profit exceeded estimates. Whirlpool Corp.
(WHR) gained 9.8% after the appliance manufacturer hiked its
outlook.
Off session highs, the Nasdaq Composite (RIXF) was up 2.71
points, or 0.1%, at 3,922.75.
For every share falling, roughly three rose on the New York
Stock Exchange, where 273 million shares traded by 11:45 a.m.
Eastern. Composite volume cleared 1.6 billion.
The dollar (DXY) lost ground against the currencies of major
U.S. trading partners including the yen (USDJPY) and the euro
(EURUSD). The yield on the 10-year Treasury note (10_YEAR) shed 8
basis points to 2.525% and gold futures for December delivery
(GCZ3) rose $25.10, or 1.9% to $1,340.90 an ounce.
Crude futures (CLX3) for November delivery lost 75 cents, or
0.8%, to $98.47 a barrel.
Another economic report released Tuesday had the U.S. Department
of Commerce reporting a 0.6% rise in August construction spending,
slightly better than the 0.6% increase predicted by economists
surveyed by MarketWatch.
Separately, the Richmond Fed's manufacturing report found
activity remained weak in October.
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