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Stocks end up slightly higher

Published 06/05/2016

A disappointing jobs report sent stocks lower early on
A disappointing jobs report sent stocks lower early on

Stocks have ended modestly higher, ending three days of losses, after the US government's disappointing jobs report added to speculation that the Federal Reserve might keep interest rates low for another year.

Investors were also weighing tepid US earnings reports and persistent weakness in the global economy.

The Dow Jones industrial average rose 79.92 points, or 0.5%, to 17,740.63. The Standard & Poor's 500 index rose 6.51 points, or 0.3%, to 2,057.14 and the Nasdaq composite rose 19.06 points, or 0.4%, to 4,736.16.

The three major indexes ended the week slightly lower, despite Friday's gains.

Stocks started the day lower after the Labour Department said US employers created just 160,000 jobs last month, significantly below the 200,000 that economists were expecting.

While one month does not make a trend, there have been a few reports this week from around the world that suggested weakness in the global economy. A closely watched Chinese manufacturing survey showed production contracted last month, and European Union officials trimmed their forecasts for growth across the 19 countries that use the euro.

Immediately after the release of the jobs report, bond prices jumped and interest rates moved sharply lower, but as the day wore on, the market reversed course. US government bond prices ended lower, and the yield on the benchmark US 10-year Treasury note rose to 1.78% from 1.74% the day before.

The euro rose to 1.1401 dollars from 1.1398 dollars and the dollar declined to 107.13 yen from 107.25 yen.

In company news, payment processor Square sank 2.83 dollars, or 22%, to 10.22 dollars. The company, run by Twitter founder Jack Dorsey, reported a larger than expected quarterly loss and reported sharply higher expenses.

In commodities, benchmark U.S. crude oil rose 34 cents to close at 44.66 dollars a barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, climbed 36 cents to close at 45.37 dollars a barrel in London.

Wholesale gasoline rose less than 1 cent to 1.496 a gallon dollars, heating oil rose 1 cent to 1.337 dollars a gallon and natural gas rose 2.5 cents to 2.101 dollars per thousand cubic feet.

Gold rose 21.70 dollars to 1,294 dollars an ounce, silver rose 20 cents to 17.53 dollats an ounce and copper was unchanged at 2.15 dollars a pound.

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