Investing.com -- U.S stocks inched up on Friday, as nonfarm payrolls in the U.S. rose in April by its lowest level in seven months, potentially lowering the probability that the Federal Reserve could raise interest rates before the end of the first half.
On Friday morning, the U.S. Department of Labor's Bureau of Labor Statistics (BLS) said domestic nonfarm payrolls in April increased by 160,000, considerably below a downwardly revised gain of 209,000 in March and the lowest monthly total since last September. Nevertheless, the unemployment rate remained unchanged at 5.0%, while average hourly earnings increased by 0.3%, in line with consensus estimates.
The Dow Jones Industrial Average gained 79.79 or 0.45% to 17,740.50, while the S&P 500 Composite index added 6.53 or 0.32% to 2,057.16, capping a relatively flat 5-day stretch when both indices closed fractionally lower for the week. The NASDAQ Composite index, meanwhile, rose 19.07 or 0.40% to 4,736.16, withstanding a sharp decline in the biotech sector. On the S&P 500, seven of 10 sectors closed higher as stocks in the Basic Materials, Industrials and Consumer Services industries led. For the week, Energy, Basic Materials and Industrials sectors closed lower.
Although three top Wall Street firms lowered their expectations for the pace of the Fed's current tightening cycle, there were other indications on Friday that the U.S. central bank could leave a June rate hike on the table. In an interview with the New York Times following the jobs release, New York Fed president William Dudley said he is still reasonably confident that the Fed could raise rates up to two times this year. Any tightening by the Fed is viewed as bearish for U.S. equities, as investors depart their positions in stocks for yield-bearing assets in bonds and U.S. Treasuries.
The top performer on the Dow was Wal-Mart Stores Inc (NYSE:WMT), which added 1.04 or 1.55% to 68.25. Earlier this week, the world's largest retailer announced plans to fill 9,000 front-of-the-store greeter positions throughout the U.S. Over the last two years, Wal-Mart (NYSE:WMT) has spent billions dollars to raise the wages for thousands of employees, amid nationwide calls for an increased federal minimum wage. The worst performer was Merck & Company Inc (NYSE:MRK), which fell 0.49 or 0.91% to 53.60. For the week, the iShares NASDAQ Biotech Index ETF slumped approximately 3%.
The biggest gainer on the NASDAQ was Activision Blizzard Inc (NASDAQ:ATVI), which surged 2.96 or 8.48% to 37.87, after the Southern California-based video game maker trounced first quarter earnings estimates and lifted its full-year guidance. It came on the back of stellar Call of Duty Back OPS sales on the period. The worst performer was Endo International, which plunged 10.42 or 39.19% to 16.17. Endo extended 25% losses from Thursday night's after-hour session after the specialty drug maker announced plans to slash its full-year guidance 23%, amid widespread pricing pressure among multiple drug classes.
The top performer on the S&P 500 was Teradata Corporation (NYSE:TDC), which soared 1.87 or 7.12% to 28.14 after the Miami Township-based company notified the U.S. Securities and Exchange Commission of CEO Michael Kohler's resignation on Friday. Kohler, who will be paid $2.7 million under a severance deal reached with the company, will be replaced immediately by board member Victor Lund. Endo International was also the worst performer on the S&P 500, just below Chesapeake Energy Corporation (NYSE:CHK) which tumbled 1.02 or 17.86% to 4.69.
On the New York Stock Exchange, advancing issues outnumbered declining ones by a 1,951-1,071 margin.