LIVE MARKETS-Wall Street advances ahead of payrolls week

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WALL STREET ADVANCES AHEAD OF PAYROLLS WEEK

U.S. stocks ended in the green on Friday in the wake of a largely as-expected PCE report, exiting the week on a cheerful note ahead of a data-crowded week, culminating in Friday's employment report.

Analysts expect that report to show continued softening in the jobs market, which could clear the path for additional interest rate cuts from the Fed.

The Dow Jones Industrial Average .DJI rose 299.97 points, or 0.65%, to 46,247.29, the S&P 500 .SPX gained 38.98 points, or 0.59%, to 6,643.70 and the Nasdaq Composite .IXIC gained 99.37 points, or 0.44%, to 22,484.07.

All three major indexes finished the week lower, with the S&P 500 and the Nasdaq snapping three-week winning streaks.

Consumer discretionary .SPLRCD, utilities .SPLRCU, homebuilders .SPCOMHOME and housing stocks .HGX were the clear outperformers on the day.

Investors appeared to shrug off President Trump's latest round of tariffs, this one aimed at pharmaceuticals, trucks and furniture.

This week's economic data was varied but generally robust, casting doubt on the likelihood of more than one additional rate cut from the Federal Reserve this year.

But while many policymakers have called for a cautioned approach to interest rate reduction, on Friday Fed Vice Chair Michelle Bowman said recent labor market data suggests it's time "to act decisively and proactively to address decreasing labor market dynamism and emerging signs of fragility."

The Commerce Department's crucial PCE report for August showed inflation behaving as expected while personal income and consumer spending surprised to the upside. But disposable income growth fell short, suggesting that rising costs were at least partially responsible for the stronger-than-expected spending increase, and together with the falling saving rate, hinted that consumers are being squeezed, a notion echoed by the University of Michigan's final take on September consumer sentiment.

Next week, the economic docket is fairly crowded, with a slew of labor market data demanding the most attention. The JOLTS report on jobs market churn is expected to show a downtick in job openings, while private payrolls are seen growing by a scant 50,000 in ADP's National Employment index.

On Thursday, Challenger layoffs and initial jobless claims will set the stage for the September employment report due on Friday, which is expected to align with ADP; economists project the U.S. economy grew by 50,000 jobs in September, with average hourly earnings growth and the unemployment rate holding firm at 0.3% and 3.7%, respectively.

Outside of the labor market, pending home sales, home price growth, consumer confidence, PMI, and new factory orders round out the program.

Next week's earnings landscape is somewhat sparse, although results from Carnival CCL.N and Nike NKE.N are on deck.

Here's your closing snapshot:

(Stephen Culp)

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