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Unemployment rate rises in August
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Job additions stronger than expected
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Broadcom slips on downbeat revenue outlook
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Dell gains on raising full-year forecasts
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Indexes up: Dow 0.66%, S&P 0.57%, Nasdaq 0.38%
(Updated at 10:12 a.m ET/1412 GMT)
By Shristi Achar A and Amruta Khandekar
Sept 1 (Reuters) - Wall Street's main indexes rose on Friday after a closely watched report showed the unemployment rate rose in August and wage growth slowed, spurring expectations that the Federal Reserve could pause its interest rate hikes.
The Labor Department's report showed the unemployment rate rose to 3.8% last month against expectations that it would remain unchanged at 3.5%, while wages advanced 0.2% on a monthly basis, moderating from a 0.4% rise in July.
Nonfarm payrolls increased by 187,000 jobs in August, against expectations of 170,000 additions, according to a Reuters poll of economists. Data for July was revised to show 157,000 job additions instead of the 187,000 additions reported before.
Traders' bets that the Fed will keep rates unchanged in September stood at 93%, while bets of a pause in November rose to 63% after the jobs report, compared with 44.5% a week earlier, according to CME Group's FedWatch tool.
"The data is pretty mixed. The initial reaction up is because the market has been very focused on not seeing any outliers that suggest rate rises are likely to keep coming," said Rick Meckler, partner at Cherry Lane Investments.
"I think these numbers probably put the Fed back on path for one more rate rise and then that's it."
The payrolls report follows recent data showing a fall in job openings and softer-than-expected private employment growth, both of which signaled weakness in the labor market.
An inflation reading had also supported hopes of the Fed hitting a pause on its market-punishing tightening campaign, pushing the tech-heavy Nasdaq up to a four-week high on Thursday.
A survey by the Institute for Supply Management on Friday showed U.S. manufacturing contracted for a tenth straight month in August.
At 10:12 a.m. ET, the Dow Jones Industrial Average was up 228.36 points, or 0.66%, at 34,950.27, the S&P 500 was up 25.49 points, or 0.57%, at 4,533.15, and the Nasdaq Composite was up 53.69 points, or 0.38%, at 14,088.66.
Disney and Charter Communications slipped 2.0% and 2.6%, respectively, dragging the broader communication services sector 0.1% lower.
The stocks fell after the two companies traded salvos over their unresolved distribution agreement after channels like ESPN went dark on Thursday for customers of Charter's Spectrum cable service.
Broadcom fell 4.5% as the chipmaker projected current-quarter revenue below expectations on softening enterprise demand.
Dell Technologies surged 21.9% after the personal computer maker raised its annual forecasts for revenue and profit as it benefits from the artificial intelligence boom.
Lululemon Athletica gained 4% after the yogawear maker said on Thursday its third quarter was "off to a solid start" and lifted its annual profit and revenue forecasts for a second time.
Walgreens Boots Alliance slipped 2.9% after the pharmacy chain said CEO Rosalind Brewer has stepped down.
Advancing issues outnumbered decliners for a 3.61-to-1 ratio on the NYSE and a 2.70-to-1 ratio on the Nasdaq.
The S&P index recorded 23 new 52-week highs and four new lows, while the Nasdaq recorded 59 new highs and 34 new lows.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Additional reporting by Sruthi Shankar; Editing by Shounak Dasgupta)
