US STOCKS-Wall Street rises as jobs data supports Fed policy

Reuters

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

* Fed seen unlikely to taper stimulative policy this year

* Netflix stumbles in wake of earnings

* Indexes up: Dow 0.49 pct, S&P 0.57 pct, Nasdaq 0.24 pct

By Chuck Mikolajczak

NEW YORK, Oct 22 (Reuters) - U.S. stocks climbed on Tuesday,pushing the S&P 500 to yet another record high, afterweaker-than-expected job creation last month reinforcedexpectations the Federal Reserve will hold the course on itseconomic stimulus into next year.

U.S. employers added 148,000 workers last month, well belowthe 180,000 economists had expected. The data was seen assupporting the Fed's decision to maintain its $85 billion inmonthly bond purchases, which has been a major factor in the S&P500's 2013 rally of 23 percent.

Many economists now think the Fed will refrain from scalingback its easy money policy, which has kept borrowing costs low,until next year. The central bank surprised market participantsin September when it held off on any plans to trim its stimulus.

"Another soft report on the employment numbers justcontinues to lead us to believe the Fed will be with us at theholiday table this year with their full $85 billion and ringingin the New Year probably at that rate as well, which the marketslike," said Darrell Cronk, regional chief investment officer atWells Fargo Private Bank in New York.

But gains were limited on the Nasdaq after some of theyear's biggest winners, including Netflix Inc, reversedcourse to move lower.

"This is a horrible one-day reversal, taking out yesterday'saction. We saw both higher highs and lower lows today, which isproof the stock is exhausted," said Frank Gretz, market analystand technician for brokerage Shields & Co in New York.

Netflix shares fell 9 percent to $323.12, giving back gainsthat followed the release of the company's earnings report onMonday. With more than 17 million shares traded, volume wasnearly eight times the average over the last 50 days.

Apple edged down 0.3 percent to $519.87, thoughlosses ebbed after the company unveiled a new line of iPads.

The Dow Jones industrial average rose 75.46 points or0.49 percent, to 15,467.66, the S&P 500 gained 10.01points or 0.57 percent, to 1,754.67 and the Nasdaq Composite added 9.517 points or 0.24 percent, to 3,929.566.

The gains marked the fourth straight record close for thebenchmark S&P index.

Consumer staples, up 1.4 percent, was among thebest performing S&P sectors, boosted by a 4.2 gain inKimberly-Clark Corp to $102.97 after the maker ofKleenex tissues posted bigger-than-anticipated quarterly profit.

Transocean shares rose 6 percent to $49.35 after S&PDow Jones Indices announced the drilling services company willreplace Dell on the S&P 500 index after the close oftrading next Monday.

Shares of cloud software maker VMware Inc rose 2.8percent to $85 a day after it reported a higher-than-expectedprofit.

According to Thomson Reuters data through Tuesday morning,of the 128 companies in the S&P 500 that have reported earnings,63.3 percent have topped analysts' expectations, roughly in linewith the beat rate since 1994 but below the 66 percent rate overthe past four quarters.

On a revenue basis, 52.3 percent of companies in the S&P 500that have reported results have beaten Wall Street expectations,short of the 61 percent beat rate since 2002 but slightly abovethe 49 percent rate over the past four quarters.

Advancing stocks outnumbered declining ones on the NYSE by2,210 to 805, while on the Nasdaq, advancers beat decliners1,397 to 1,148.

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