US stocks jump on September job gains

Wall Street stocks have risen after the US economy gained a strong 248,000 jobs in September.

Wall Street stocks have barrelled higher, cutting the week's losses, after the Labour Department reported the US economy gained a strong 248,000 jobs in September.

The Dow Jones Industrial jumped 208.64 points (1.24 per cent) to 17,009.69 on Friday.

The broad-based S&P 500 bolted 21.73 (1.12 per cent) higher to 1,967.90, while the tech-rich Nasdaq Composite Index gained 45.43 (1.03 per cent) at 4,475.62.

The September employment report showed a welcome rebound in job growth after August's worrisome slump, taking the monthly job creation average so far this year to 227,000 and pushing the jobless rate down to 5.9 per cent, a six-year low.

The report also helped shift the conversation on Wall Street away from various worries that hit stocks earlier in the week, from growth fears about China and Europe, to the strengthening dollar, to the first case of Ebola diagnosed in the US.

"Today's report was obviously very good news," said Tom Cahill, portfolio strategist at Ventura Wealth Management.

Large financial stocks outperformed broader indices, including Bank of America (+2.4 per cent), Citigroup (+2.1 per cent) and Goldman Sachs (+2.8 per cent).

Another big financial player, JPMorgan Chase, rose 2.5 per cent despite disclosing that a data breach revealed in August had compromised 76 million household customers and seven million businesses.

However, the bank said there was no evidence that critical account information such as account numbers, user identities or social security numbers were stolen by the hackers.

Shares of cybersecurity firms advanced: Palo Alto Networks (+6.6 per cent), Proofpoint (+5.4 per cent) and Qualys (+3.2 per cent).

Airline stocks rose as some analysts said the pullback in energy prices would benefit the industry and offset potentially lower travel volumes due to the Ebola virus. American Airlines gained 6.8 per cent, while Delta Air Lines rose 4.7 per cent.

Bond prices were mixed. The yield on the 10-year US Treasury rose to 2.45 per cent from 2.44 per cent Thursday, while the 30-year fell to 3.13 per cent from 3.15 per cent. Bond prices and yields move inversely.


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