Jobs Joy Lifts Wall Street To Record Close

Non-farm payrolls increased by 943,000 jobs last month, a Labour Department report showed. Economists polled by Reuters had forecast payrolls would increase by 870,000 jobs.

The Laboor Department's closely watched employment report also showed strong wage gains, as employers competed for scarce workers, and a drop in the unemployment rate to a 16-month low.

"I think that investors are now saying we’ve got renewed confidence in the economic recovery,” said Sam Stovall, chief investment strategist at CFRA. “And as a result, (investors) are rotating again into the cyclical, the value stocks, as well as the smaller-cap issues.”

Four of the 11 major S&P 500 sectors rose, with financials posting the biggest daily percentage gain since July 20. The S&P 500 technology sector index fell.

Focus now turns to a meeting of Federal Reserve leaders in Jackson Hole, Wyoming, later this month to discuss policy and decide future stimulus strategy.

The Dow Jones Industrial Average on Friday rose 0.41 percent, to 35,209, the S&P 500 gained 0.17 percent, to 4,437 and the Nasdaq Composite dropped 0.4 percent, to 14,836.

On the earnings front, American International Group rose 4.7 percent after it beat second-quarter profit estimates on Thursday.

Zynga tumbled 18.2 percent after issuing a disappointing forecast for bookings and announcing a potential acquisition worth over half a billion dollars. (Reuters)