US open: Stocks rise on non-farm increase as presidential election looms

US stocks were in the green as data revealed that hiring and wages surged in October but missed new job expectations, while the close-run presidential race entered the final few days.

The Dow Jones Industrial Average rose 0.12% to 17,951.53 points, the S&P 500 climbed 0.08% to 2,094.66 points and the Nasdaq increased 0.3% to 5,073.49 points at 1500 GMT.

Oil prices were down as growing tensions between Iran and Saudi Arabia could foil a potential deal to slash production.

Brent crude declined 0.73% to $46 per barrel and West Texas Intermediate slid 0.24% to $44.55 at 1458 GMT.

Data from the Labor Department showed that hiring rose in October as wage growth accelerated at its strongest pace since 2009.

Non-farm payrolls increased a seasonally adjusted 161,000 from an upwardly revised gain of 191,000 in September, while the jobless rate fell to 4.9% in October from 5.0% as the labour force contracted.

Analysts had expected 173,000 new jobs and a 4.9% jobless rate.

Average hourly earnings rose 2.8% in October compared to a year earlier following a 2.7% increase in September and compared to estimates for a 2.6% increase.

Alex Lydall, head of dealing at Foenix Partners, said the economy shifted up a gear on Friday with the slight miss on the payroll number unlikely to derail ambitions of a December Federal Reserve rate hike.

“Despite the pantomime-like affairs in the presidential race set to conclude next week, the modestly lower non-farm figure was coupled with a solid unemployment rate and a growing hourly wages level, likely to prevent a further sell-off in the greenback that we saw yesterday.

“Janet Yellen subtly hinted on Wednesday evening what most investors are forecasting - a December hike - and in the absence of any shock data in the coming weeks the path appears to be set. Markets are tentatively poised for the announcement of the next US president, with the poignant question being: is the reaction on currencies a move depicted in the greenback or more a risk-related asset move?”

A RealClearPolitics average of polls showed Democratic candidate Hillary Clinton’s lead at 1.5 points early on Friday, up a touch from 1.3 points late on Thursday, but still lower than her seven point lead in mid-October.

“Political uncertainty has already taken its toll in the past few weeks, with the year’s lowest trading levels reported in October and today’s weaker than expected jobs market figures," Paul Sirani, chief markets analyst at Xtrade, said.

“We are now faced with an unpredictable period of market activity with a number of potential dangers on the horizon.

“Judging by the polls, Donald Trump has battled his way back into contention, and while a Hillary Clinton remains the most likely victor, a shock result on Tuesday could trigger another set of Brexit-style shudders through markets across the globe.”

Meanwhile, the US trade deficit narrowed to $36.4bn in September from $40.5bn in August, which was a 19-month low after a fourth straight increase in exports which boosted the third quarter.

In corporate news, Starbucks’ shares rose 2.65% as fourth-quarter results released late on Thursday said the coffee giant was ahead of estimates for earnings per share and revenue.

Whereas shares in camera maker GoPro were down 7.41% after it posted weaker-than-expected quarterly earnings, while shares in Monster Beverage decreased 5.88% after its results missed targets and sales fell.