US STOCKS-Stocks rise as weak jobs data supports easy money policy

Reuters

* Data show U.S. jobs growth lost momentum last month

* Fed seen unlikely to taper stimulative policy this year

* Netflix turns lower, brings down Nasdaq

* Indexes up: Dow 0.4 pct, S&P 0.4 pct, Nasdaq 0.03 pct

By Julia Edwards

NEW YORK, Oct 22 (Reuters) - U.S. stocks climbed on Tuesday,with the S&P 500 at a record intraday high, afterweaker-than-expected job creation last month validatedexpectations the Federal Reserve will maintain its economicstimulus into next year.

The Nasdaq pared some of its earlier gains as some of theyear's biggest winners, including Netflix Inc, reversedcourse during trading to move lower.

"The most volatile sector, in terms of risk and return, isgoing to be the technology sector," said Jon Smith, chiefinvestment officer at DT Investment Partners. "You can nevernecessarily tell exactly what is going to happen in the techstory in general."

U.S. employers added 148,000 workers last month, well belowthe 180,000 economists had expected. The data is seen assupporting the Fed's decision to maintain its $85 billion inmonthly bond purchases, which has helped stocks rally in 2013.

The Nasdaq was volatile after reaching its highest levelsince the 2000 tech bubble on Monday. Netflix shares fell 4.4percent to $330.30, reversing the rise that followed the releaseof the company's earnings report on Monday. Volume in the stockspiked as it fell into negative territory on the day. With morethan 15 million shares traded, volume was nearly five times theaverage over the last 50 days.

Apple was the biggest drag on the Nasdaq, down 4.8percent to $516.50, on the day the company is expected tointroduce a new line of iPads.

The Dow Jones industrial average was up 60.79 points,or 0.39 percent, at 15,452.99. The Standard & Poor's 500 Index was up 6.86 points, or 0.39 percent, at 1,751.52. TheNasdaq Composite Index was up 1.26 points, or 0.03percent, at 3,921.31.

The S&P earlier hit a record intraday high at 1,759.33.

Many economists think the Fed will hold off on scaling backits easy money policy, which has kept borrowing costs low, untilnext year.

"The September numbers vindicate the Fed's decision topostpone tapering, said Brian Jacobsen, chief portfolio managerat Wells Fargo Funds Management in Menomonee Falls, Wisconsin.

Payroll figures for August were revised higher and theSeptember unemployment rate ticked down to 7.2 percent from 7.3percent.

Transocean shares rose 5.2 percent to $49.00 afterS&P Dow Jones Indices announced the drilling services companywill replace Dell on the S&P 500 index after the closeof trading next Monday.

Shares of cloud software maker VMware Inc rose 5.7percent to $87.36 a day after it reported a higher-than-expectedquarterly profit.

High-end handbag maker Coach fell 7.8 percent to$49.95 after it posted smaller-than-expected quarterly revenue.

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