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Amazon.com ( AMZN ) surges as retail strength boosts profit

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US job growth slows sharply in October

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Consumer discretionary index pops

(Adds preliminary closing details)

By Abigail Summerville

Nov 1 (Reuters) - Wall Street's major indexes ended

higher on Friday, rebounding from the previous day's sell-off as

Amazon's ( AMZN ) strong earnings countered a significant drop in U.S.

job growth in October.

Amazon.com ( AMZN ) rose after it reported earnings on

Thursday that revealed strong retail sales, boosting profit

above Wall Street estimates.

Meanwhile, Apple ( AAPL ) fell as investors worried about a

decline in its China sales during its most recent quarter.

Other so-called Magnificent Seven members Meta Platforms ( META )

and Microsoft ( MSFT ) also reported earnings earlier

this week and warned on AI-related infrastructure costs,

dragging the Nasdaq down on Thursday.

"A new month frequently seems to offer new optimism for

investors - especially after we saw a sharp decline yesterday -

and after seeing encouraging results from Apple ( AAPL ) and Amazon ( AMZN ),"

said Sam Stovall, chief investment strategist at CFRA Research.

Equity markets brushed off weak U.S. October nonfarm

payrolls data, given disruptions from hurricanes and strikes.

The data showed an increase of 12,000 jobs, much smaller than

economists' estimate of a 113,000 rise.

However, the unemployment rate held steady at 4.1%,

reassuring investors the labor market remained on solid ground

ahead of the U.S. presidential election on Tuesday.

"Third-quarter earnings, interest rates and the election

continue to be the main drivers in the near term," Stovall said.

According to preliminary data, the S&P 500

gained 22.72 points, or 0.40%, to end at 5,728.17 points,

while the Nasdaq Composite gained 144.62 points, or

0.80%, to 18,239.77. The Dow Jones Industrial Average

rose 290.49 points, or 0.70%, to 42,053.95.

After the jobs data was released, investors largely stuck to

bets that the central bank would cut rates by 25 basis points in

November.

The U.S. election is on investors' minds, with many analysts

predicting a close presidential race and some uncertainty over

the final outcome. The Fed's November meeting kicks off the

following day.

Amazon.com's ( AMZN ) gains lifted the Consumer Discretionary index

to a more than two-year high, while utility

and real estate stocks were the biggest sectoral

decliners.

Intel ( INTC ) jumped after a better-than-expected revenue

forecast. An index of chip stocks also rose.

Chevron ( CVX ) shares rose after the company beat

third-quarter profit estimates on higher oil output.