Closing Update: Late Rally Adds to Weekly Advance for Dow, S&P 500; Nasdaq Again Lags

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Stocks turned back initial declines that followed a better-than-expected jobs report for October that some see increasing the odds of a Fed taper. Investors instead embraced another batch of strong earnings as good news, lifting the U.S. markets to a higher close. Nearly all industry sectors in the S&P 500 ended in the black, led by shares of financial and materials companies. Both the S&P and the Dow Jones Industrials indices were higher for the week, although the Nasdaq Composite finished lower for the second week in a row.

Non-farm payrolls jumped 204,000 in October, nearly twice what was expected, while the jobless rate inched 0.1% higher to 7.3%, reflecting the influx of furloughed federal employees from the government shutdown.

The surprise strength in the labor market initially spooked investors, reigniting worries that positive economic news will finally spur the Federal Reserve to start winding down its stimulus efforts. But as the session progressed, the market appeared to find enough anomolies in the data - including a record 83% response rate from employers, possibly resulting in positively skewed results - to support those who believe the Fed won't begin tapering its bond purchases before 2014.

The preliminary reading for consumer sentiment as measured by the Reuters/University of Michigan index fell to a near 2-year low of 72.0 this month, down from a final 73.2 score in October, likely mirror public worries following the 16-day government shutdown and budget fight last night on consumer attitudes.

Expert opinion had the consumer confident index rising this month to a 75.0 reading.

Crude oil for December delivery settled 34 cents higher at $94.58 per barrel while December natural gas added 4 cents to finish at $3.56 per 1 million BTU. December gold slid $24.10 to $1,284.60 per ounce while December silver fell 34 cents to end at $21.32 per ounce. December copper was unchanged at $3.25 per pound.

Here's where the U.S. markets stood at end-of-day:

Dow Jones Industrial Average up 167.80 (+1.1%) to 15,761.78

S&P 500 up 23.46 (+1.3%) to 1,770.61

Nasdaq Composite Index up 61.90 (+1.6%) to 3,919.23

GLOBAL SENTIMENT

Hang Seng Index down 0.60%

Shanghai China Composite Index down 1.09%

FTSE 100 Index up 0.10%

UPSIDE MOVERS

(+) OLED, Reports a surprise $0.12 per share Q3 profit, easily beating analyst expectations for a break-even quarter for the maker of light-emitting diodes. Revenue also tops estimates and the company raised its full-year guidance.

In other sector news,

(+) UBNT, Reports fiscal Q1 earnings of $0.46 per share, topping the analyst consensus by $0.06. Revenues rise 110.9% to $129.7 mln, beating Street view by $9.9 mln. Q2 EPS guidance exceeds estimates by at least $0.02, revenue by $6.93 million.

(+) SNTS, Agrees to a $2.6-bln acquisition by Salix Pharmaceuticals ( SLXP ), accepting $32 per share. SLXP also finished sharply higher, saying the deal will "lead to significant accretion in 2014" and "greater" EPS accretion in 2015.

DOWNSIDE MOVERS

(-) AVG, Q4 earnings guidance trails expectations by at least $0.05 per share while projected revenue lags Street view by as much as 18.6%. Q3 EPS of $0.52 beats by $0.05. Revenue climbs 5% year over year rise to $100.1 mln but still misses by 2.9 mln.

(-) TRMR, Posts Q3 revenue and adjusted EPS that missed Wall Street expectations. It also provided downside guidance for Q4 and FY13, forecasting revenue trailing analyst estimates by at least $8.05 mln and $10.01 mln, respectively.

(-) AREX, Q3 earnings of $0.07 per share beat by $0.01. The oil and gas company also hires Sergei Krylov, currently a managing director at J.P. Morgan ( JPM ) Securities LLC, as its new chief financial officer.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: JPM , SLXP

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