Wall St opens up as chance of rate hike in 2015 dims

by **Cals** Tue 06 Oct 2015, 02:06

US Stocks

[size=28]Wall St opens up as chance of rate hike in 2015 dims

By Reuters / Reuters | October 5, 2015 : 10:14 PM MYT

BENGALURU (Oct 5): Wall Street opened higher on Monday, after a disappointing U.S. jobs report on Friday hardened views that the Federal Reserve will not raise interest rates this year.

Global stock markets rose on Monday with investors expecting the era of near-zero interest rates to continue for a while yet.

Friday's U.S. nonfarm payrolls report for September showed job growth slowed in the last three months.

"Risk investors have taken an attitude that bad news is good news again," said Jack Ablin, chief investment officer atBMO Private Bank in Chicago.

Eric Rosengren, head of the Boston Fed, told Reuters on Monday that he still expects the Fed to raise rates this year despite the "weak" jobs report.

At 9:32 a.m. ET, the Dow Jones industrial average rose 87.46 points or 0.53% to 16,559.83, the S&P 500 gained 12.89 points or 0.66% to 1,964.25 and the Nasdaq composite added 35.86 points or 0.76% to 4,743.63.

All ten major S&P sectors were up, with the energy index's 1.4% rise leading the advancers.

Crude oil prices gained more than 2% after Russia said it was prepared to discuss the market with other producers. Exxon and Chevron gained more than 1%.

Energy stocks had led a turnaround in the market on Friday, after the jobs report had initially pushed stocks lower.

The market has been volatile, as investors try to gauge when the Fed will raise rates amid concerns about global growth and its effect on U.S. economic policy and corporate results.

With the third-quarter earnings season starting this week, investors are also starting to factor in what is likely to be the biggest fall in profits for S&P 500 companies in six years.

Wall Street expects S&P 500 companies to report a 4.2% decline in profits, according to Thomson Reuters data.

GE gained 3.7% to US$26.41, after Nelson Peltz's Trian Fund Management disclosed a roughly 1% stake in the company. The stock gave the biggest boost to the S&P 500.

Twitter was up 1.7% at US$26.73 after naming co-founder Jack Dorsey as its permanent CEO.

Spark Therapeutics soared 49% to US$65.7, after the company said its experimental eye drug was successful in a late-stage study.

Alphabet Inc, the restructured Google, opened up about 0.2% on its first day of trading. Each share of the old Google is worth one share of Alphabet.

The Institute of Supply Management's non-manufacturing PMI index is expected to have dropped to 57.7 in September, from 59.0 in August. The data is due at 10 a.m. ET.

Advancing issues outnumbered decliners on the NYSE by 2,013 to 260. On the Nasdaq, 1,824 issues rose and 389 fell.

The S&P 500 index showed four new 52-week highs and no new lows, while the Nasdaq recorded 11 new highs and four new lows.
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