US stocks drift higher despite downbeat jobs report

U.S. stocks turned higher after a volatile session Friday, although the country's nonfarm payroll report in August came out disappointing.
The S&P 500 added 10.06 points, or 0.50 percent, to 2,007.71, a record close. The Dow Jones Industrial Average increased 67.78 points, or 0.40 percent, to 17,137.36. The Nasdaq Composite Index was up 20.61 points, or 0.45 percent, to 4,582.90.
After the rise, the three major stock indices reversed earlier losses for the week to cap modest weekly gains, up 0.2 percent, 0. 2 percent and 0.1 percent, respectively.
Total nonfarm payroll employment increased by 142,000 in August and the unemployment rate edged down to 6.1 percent from 6.2 percent in July, said the U.S. Labor Department.
Responding to the weak report, the market kept in negative territory in most of the morning session.
However, Wall Street regained steam in the afternoon session, as the less-than-expected jobs report also alleviated market concerns that the Federal Reserve may hike interest rates sooner than later.
The U.S. central bank should be in no hurry to lift interest rates since there is a significant slack in the U.S. labor market, Boston Fed President Eric Rosengren said Friday.
Positive development in Ukraine also offset negative effects of the jobs report. Representatives of Ukraine's government and insurgent leadership inked a ceasefire agreement in Minsk on Friday, which is slated to take effect later in the day.
The CBOE Volatility Index, often referred to as Wall Street's fear gauge, slumped 4.35 percent to end at 12.09.
In other markets, crude prices declined as the disappointing U. S. nonfarm payroll report raised doubts about U.S. economic growth and the country's demand for oil.
Light, sweet crude for October fell 1.16 U.S. dollars to settle at 93.29 dollars a barrel on the New York Mercantile Exchange, while Brent crude for October delivery dropped 1.01 dollars to close at 100.82 dollars a barrel.
Gold futures on the COMEX division of the New York Mercantile Exchange advanced on a soft dollar, with the most active gold contract for December delivery up 0.8 dollar, or 0.06 percent, to settle at 1,267.3 dollars per ounce.
The U.S. dollar retreated against most major currencies as the U.S. economy added less jobs than expected in August. In late New York trading, the euro rose to 1.2958 dollars from 1.2939 dollars of the previous session, and the dollar bought 105.06 Japanese yen, lower than 105.23 yen of the previous session.