MARKET SNAPSHOT: U.S. Stocks Rise After Strong Jobs Report

By Anora Mahmudova and Sara Sjolin, MarketWatch

NEW YORK (MarketWatch) -- U.S. stock prices drew positive momentum from a strong jobs report that suggests that the U.S. economy is stronger than expectations.

The S&P 500 (SPX) rose 9 points, or 0.5%, to 1,955.09, with healthcare and financial stocks leading the gains.

The Dow Jones Industrial Average (DJI) gained 83 points, or 0.5%, to 16,885.10.

The Nasdaq Composite (RIXF) added 23 points, or 0.5%, to 4,453.06.

Mike Arone, chief investment strategist at State Street Global Advisors' US Intermediary Business, stressed that not only the headline number of the jobs report was good, but underlying components showed strength, referring to substantial upward revisions for July and August.

"The fact that the wage growth remains tame and inflation below target, bodes well for the markets as the Fed will not be pressured to raise rates sooner. It appears that markets are finally in a cycle where good news is good news," Arone said.

Data:The U.S. economy added 248,000 jobs in September and hiring in August turned out to be a lot stronger than forecasts, showing the U.S. economy entered the fall with rising momentum. The unemployment rate fell to 5.9%, falling below 6% mark for the first time since 2008.

Separately, the U.S. trade deficit fell 0.5% to $40.1 billion in August, marking the lowest level since January as the nation exported a record amount of petroleum and imported less. An update on the September ISM non-manufacturing reading is due at 10 a.m. Eastern.

Movers: Mylan Inc. (MYL) shares rose 3.72% after the pharmaceutical company raised its third-quarter and full-year earnings guidance.

Tekmira Pharmaceuticals Corp. (TKMR) shares rose 6.70%, as the widening breadth of Ebola cases in the U.S. gave brighten the company's business outlook. Tekmira is one of a handful of biotech companies working on treatments for the Ebola virus.

In commodities-related shares, plunging gold prices put pressure on miners, while energy groups suffered from falling oil prices. Oil and mining stocks were among the worst performers on the S&P 500. Diamond Offshore Drilling (DO) fell 3.7%, Newmont Mining Corporation (NEM) was down 2.3%.

Shares of J.P. Morgan Chase & Co. (JPM) could be on the move after the bank late Thursday that 76 million households were affected by a previously disclosed cybersecurity breach.

(Read more about the day's notable stocks in Movers & Shakers column http://www.marketwatch.com/story/gm-jp-morgan-krispy-kreme-in-focus-2014-10-03.).

Other markets: Asian markets closed mostly in positive territory, and European markets rebounded after a sharp selloff on Thursday. The dollar rose against rivals after the jobs report, recovering after a sharp slide over the past two sessions. Oil futures climbed, while most metals declined.

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