MARKET SNAPSHOT: U.S. Stocks Rise; New Labor Data In Focus

By Anora Mahmudova and Carla Mozee, MarketWatch

NEW YORK (MarketWatch) -- The U.S. stock market kicked off the week on a positive note as investors remained optimistic after a strong jobs report on Friday, while M&A deals and waning protests in Hong Kong added to the positive momentum.

Upcoming news from the Federal Reserve's labor-market conditions index, due at 10 a.m. Eastern Time, is widely expected to confirm the positive outlook for the U.S. economy.

Meanwhile, the S&P 500 (SPX) rose 8 points, or 0.4%, to 1,976.61. The Dow Jones Industrial Average (DJI) added 80 points, or 0.5%, to 17,089.24. The Nasdaq Composite (RIXF) gained 15 points, or 0.4%, to 4,491.94.

Data: The Fed's labor-market conditions index is the first regularly scheduled release of the indicator. The LCMI condenses several pieces of labor data into one reading, in order to give a better view of the market than offered solely by the unemployment rate, which dropped to 5.9% in September.

A healthy number for the new index would be seven, according to Bank of America.

Last Friday's strong jobs report led to the S&P 500 rally to the biggest gain in nearly two months. The U.S. economy last month added 248,000 jobs and the unemployment rate fell below 6%, to 5.9%, for the first time since 2008, outpacing expectations.

The report showed wage growth is stagnating, which appeared to curb concerns about rising inflation -- a closely watched metric, which, if elevated, could prompt the Fed to quickly raise interest rates.

Fed speakers: Kansas City Fed President Esther George, who has supported an interest-rate hike sooner rather than later, will talk about the U.S. economy after the market closes. George, who isn't a voting member of the Fed policy committee this year, will speak at 8:30 p.m. Eastern Time in Albuquerque, NM.

Stocks on the move: Hewlett-Packard (HPQ) shares climbed 4.3% as the company said it plans to split into two, separating its personal-computer and printer businesses from its corporate hardware and services operations.

Medical technology company Becton, Dickinson (BDX) has reached a deal to buy CareFusion(CFN) for $12.2 billion in cash and stock. CareFusion shares rallied 23%.

Tesla Motors(TSLA) is set to unveil its Model 3 mass-market car and new versions of its Model S sedan at an event on Thursday, according to Global Equities Research analyst Trip Chowdhry. Tesla shares were up 1.9%.

H&R Block (HRB) shares fell 4.9% after the tax services company said regulatory approval for the sale of H&R Block Bank won't be completed in the current year.

Sunesis Pharmaceuticals (SNSSD) sank 70% after the company said a late-stage trial of a cancer treatment failed to meet its primary goals. (Read more in Movers & Shakers http://www.marketwatch.com/story/container-store-helen-of-troy-in-focus-2014-10-03.)

Other markets: The dollar (DXY) slightly pulled back against major rivals after Friday's climb. Japan's Nikkei Average and Hong Kong's Hang Seng Index each rose more than 1%, and European stocks advanced.

Oil futures (CLX4) edged higher, while gold prices (GCZ4) picked up $3.2 an ounce, but traded below $1,200 an ounce. Gold on Friday turned negative for the year.

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