* 227,000 jobs added in January vs est. 175,000
* Unemployment rate ticks up to 4.8 pct
* Banks gain as Trump prepares to scale back Dodd-Frank
* Indexes up: Dow 0.45 pct, S&P 0.35 pct, Nasdaq 0.25 pct
(Updates to open)
By Yashaswini Swamynathan
Feb 3 Wall Street climbed higher on Friday,
lifted by a much better-than-expected nonfarm payrolls data and
as financial stocks gained on expectations of simpler bank
The U.S. Labor Department said 227,000 jobs were created in
the public and private sectors in January, as construction and
retailers ramped up hiring. Economists had expected 175,000 jobs
to be added.
Unemployment rate ticked up to 4.8 percent, still below the
5 percent level considered to be full employment.
However, average hourly wages grew by only three cents or
"Continued strong job creation is tempered by the renewed
sluggishness in wage growth, raising questions once again about
the extent to which the functioning of the labor market has
evolved," said Mohamed El-Erian, chief economic adviser at
Allianz in Newport Beach, California.
"The sluggish wage growth will make the Fed more cautious
about hiking in March."
Chicago Federal Reserve President and voting member Charles
Evans said the central bank should raise interest rates
gradually even as fiscal policies under President Donald Trump
are likely to help push economic growth beyond sustainable
Bank stocks rose as Trump prepared to scale back the
Dodd-Frank Wall Street reform law, which was enacted in the wake
of the 2007-2009 financial crisis.
The S&P 500 financial sector rose 1.4 percent,
outperforming the gains in the other nine major S&P sectors.
Citigroup, Bank of America, Goldman Sachs
and JPMorgan were up between 1.6 percent and 2.3
At 9:34 a.m. ET (1434 GMT), the Dow Jones Industrial Average
was up 88.67 points, or 0.45 percent, at 19,973.58.
The S&P 500 was up 8.1 points, or 0.35 percent, at
2,288.95 and the Nasdaq Composite was up 13.86 points,
or 0.25 percent, at 5,650.06.
Among stocks, Dow component Visa rose 4.2 percent to
$85.75 following quarterly profit and revenue that beat
Amazon.com fell 4 percent to $805.59 after the
world's largest online retailer forecast a surprise dip in
operating profit for the current quarter. The stock was the
biggest drag on the S&P 500 consumer discretionary
Apparel and footwear maker Deckers Outdoor dropped
21 percent to $43.87 after missing quarterly revenue estimates.
Advancing issues outnumbered decliners on the NYSE by 2,088
to 508. On the Nasdaq, 1,674 issues rose and 532 fell.
The S&P 500 index showed 13 new 52-week highs and three new
lows, while the Nasdaq recorded 50 new highs and five new lows.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by