US STOCKS-Wall St jumps on jobs; Dow, S&P end lower for the week

Reuters

* Dow, S&P end 5-day losing streak and 8-week winning streak

* Payrolls top expectations; unemployment hits 5-yr low

* Intel shares climb after Citigroup upgrade to "buy"

* J.C. Penney, Barnes & Noble shares fall on SEC inquiries

* Dow up 1.3 pct, S&P 500 up 1.1 pct, Nasdaq up 0.7 pct

By Ryan Vlastelica

NEW YORK, Dec 6 (Reuters) - U.S. stocks soared on Friday,with the Dow and the S&P 500 ending a five-day losing streakafter a robust jobs report gave traders confidence that theeconomic recovery was gaining strength.

The S&P 500 scored its best day in nearly a month, with all10 S&P sector indexes solidly higher in the broad rally.

About two-thirds of the stocks traded on both the New YorkStock Exchange and Nasdaq ended in positive territory.

Both the Dow and the S&P 500 closed slightly lower for theweek, snapping eight-week rallies.

U.S. employers added 203,000 jobs to nonfarm payrolls inNovember, exceeding the forecast. The U.S. unemployment ratefell to a five-year low of 7 percent in November from 7.3percent in October, the Labor Department said.

Recent data has been mixed, with indicators for the labormarket and consumer spending showing strength, while reports onthe housing market and business spending show those areas arefaltering.

"The report shows a continuation of the recovery, which hadbeen sidelined by the shutdown in D.C. That, coupled with aconsumer who appears to be in recovery mode, is a big reason forthe market to be positive," said Kristina Hooper, head ofportfolio strategies at Allianz Global Investors, in New York.

Many market participants have expected the Fed to announce acut in stimulus in March. The Fed has said it would slow itsmassive bond purchases when certain economic measures meet itstargets, including a drop in the U.S. unemployment rate.

"The report is good, but not so compelling that thisautomatically changes the tapering story," said Hooper, whohelps oversee $436 billion in assets.

The Dow Jones industrial average jumped 198.69points, or 1.26 percent, to close at 16,020.20. The Standard &Poor's 500 Index climbed 20.06 points, or 1.12 percent,to finish at 1,805.09. The Nasdaq Composite Index gained29.36 points, or 0.73 percent, to end at 4,062.52.

The S&P 500 recorded its best day since Nov. 8, and theDow's gain was its largest since Oct. 16.

After an eight-week run that pushed the S&P 500 up nearly 7percent, the benchmark index had dropped 1.2 percent over thepast five sessions, its longest losing streak since lateSeptember.

For the week, the Dow fell 0.4 percent, and the S&P 500dipped 0.04 percent, while the Nasdaq rose 0.07 percent.

Intel ranked among the S&P 500's top gainers, rising2.3 percent to $24.82 after Citigroup raised its rating on thechipmaker to "buy" from "neutral."

J.C. Penney shares fell 8.7 percent to $8.08 afterthe department store chain said it had received a letter ofinquiry from the U.S. Securities and Exchange Commission,seeking an explanation on the company's financial position. Thestock is down almost 60 percent for the year so far.

Barnes & Noble also disclosed an SEC investigation,and its stock slid 12 percent to $14.43.

Other data showed personal spending rose 0.3 percent inOctober, slightly higher than expected. The ThomsonReuters/University of Michigan's preliminary reading on theoverall index on consumer sentiment jumped to 82.5 for Decemberfrom a final November reading of 75.1.

About 4.85 billion shares traded on all U.S. platforms,according to BATS exchange data.

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