U.S. Stocks Snap Five-Day Drop After November Jobs Data

Bloomberg (07/12) -- U.S. stocks rose, halting a five-day slide for the Standard & Poor’s 500 Index, as investors weighed better-than-forecast jobs growth to gauge the strength of the economy and timing of Federal Reserve stimulus cuts.

The S&P 500 gained 1.1 percent to 1,804.92 at 4 p.m. in New York. The advance trimmed the index’s drop this week to less than 0.1 percent after it had retreated each of the past four sessions. The U.S. jobless rate fell to 7 percent, showing progress in the labor market that will help provide a spark for the U.S. economy. The S&P 500 had fallen for five straight days, its longest slump since September, as improving economic data fueled concern the Federal Reserve will reduce its $85 billion in monthly bond purchases meant to suppress interest rates and bolster growth. The benchmark gauge of U.S. options prices retreated today after eight straight gains, matching a record streak. The 203,000 increase in payrolls followed a revised 200,000 advance in October, Labor Department figures showed today. The median forecast of 89 economists surveyed by Bloomberg called for a 185,000 advance. A report Dec. 4 from the ADP Research Institute indicated companies boosted payrolls in November by the most in a year.