Investing.com – U.S. stocks closed higher as a weaker-than-expected jobs report on Friday did little to reduce investor rate-hike expectations in the wake of recent data showing that the US economy remained on track for solid growth in the third quarter.
The Dow Jones Industrial Average closed lower at 21,987. The S&P 500 closed 0.20% higher while the Nasdaq Composite closed at 6435, up 0.10%. The three main U.S. indices posted a monthly gain in August.
US stocks made a positive start to September, as investors mulled over several economic reports including a nonfarm payrolls report showing the US economy created fewer jobs than expected in August.
The Institute for Supply Management said its manufacturing index in August climbed to 58.8% from 56.3% in July. That is the highest reading since April 2011.
The U.S. economy created 156,000 jobs in August, missing consensus estimates for the creation of 180,000 jobs.
The jobless rate unexpectedly rose in August to 4.4% while average hourly earnings fell short of expectations, slowing to 0.1% from 0.3% in the prior month.
The dip in jobs and wage growth, however, failed to curb expectations of a third rate later this year as some analysts said it would take a series of “horrendous” payrolls data for the fed to abandon its plan to hike rates once more this year.
Also supporting the move higher in equities was a surge in energy stocks, after two refineries began to restart, narrowing the ‘crack spread’ – the difference between crude oil and gasoline prices – from recent highs.
Sentiment on US stocks remains positive, following earlier data during the week showing U.S. GDP in the second quarter rose 3.0%, boosting investor expectations of solid third-quarter economic growth.
'Bulls and Bears' on Wall Street
The top Dow gainers for the session: General Mills Inc (NYSE:GIS) up 2.4%, Chevron Corporation (NYSE:CVX) up 1.1% and Nike Inc (NYSE:NKE) up 1%
United Technologies Corporation (NYSE:UTX) down 1.5%, Microsoft Corporation (NASDAQ:MSFT) down 1.1% and The Travelers Companies Inc (NYSE:TRV) down 1.1%, were among the worst Dow performers of the session.