Wall Street ends mostly higher after labor data

US stock indices closed the last session of the week higher after mostly disappointing labor data, which cut the chances of two Fed rate hikes this year, in turn buoying risk appetite on Wall Street and overshadowing concerns about China's proposals to tax $60 billion worth of US products in response to US threats of imposing taxes on $200 billion worth of Chinese imports. 

US Labor, Services Data 

Earlier US data showed the unemployment rate fell to 3.9% as expected from 4.0% in June, while average hourly earnings rose 0.3% as expected, up from 0.1% in June. 

The economy added 157 thousand jobs last month, down from 248 thousand in June, and missing estimates of 191K, as the trade deficit rose to $46.3 billion from $43.2 billion in May, below estimates of $46.5 billion. 

The US ISM services PMI fell to 55.7 in July from 59.1 in June, missing estimates of 58.6, while the trade deficit widened to $46.3 billion in June from $43.2 billion in May, below estimates of $46.5 billion. 

Services PMIs are crucial as services constitute two thirds of American GDP, with the indices covering healthcare, finance, housing, retail, and many other sectors in the economy, and they usually have bearing on the Federal Reserve's policy decisions later

White House economic adviser Larry Cudlow warned China to take Trump seriously" on trade, pointing to weakness in China's economy and currency as warning signs, while expecting increased investments in the US to buoy growth and productivity. 

Indices, Commodities 

Dow Jones rose 0.54%, or 136.42 points to 25,462.58, while Standard and Poor's 500 added 0.46%, or 13.13 points to 2,840.35. NASDAQ Composite inched up 0.12%, or 9.33 points to 7,812.01. 

Gold futures due on December 15 climbed 0.15% to $1,221.90 an ounce, moving off July 19 lows, while the dollar index inched up 0.04% to 95.22, marking July 19 highs. 

US crude futures due on September 15 fell 0.54% to $68.59 a barrel, while Brent futures due on September 15 slipped 0.19% to $73.31 a barrel.