Stocks finished modestly higher, with all three indexes finished the week at fresh multi-year highs, as investors grew optimistic that the weak August jobs report will prompt the Fed and Ben Bernanke to jumpstart the slowing economy with stimulus when it meets next week. The Labor Department reported that 96,000 jobs were added in August, well below the 120,000 jobs expected, and lowered the job creation estimates for June and July. The unemployment rate ticked down to 8.1% from 8.3%, but only as a result of a significant drop in the number of people looking for jobs. Tech stocks ended the week on a mixed note, with Intel spuring decline in chip sector. Intel slid 3.6% after the co. lowered its guidance for third-quarter revenue citing "weaker than expected demand in a challenging macroeconomic environment." Along with Intel, other chip stocks in the red included Nvdia, which fell 2.4%; Micron slid 3.82%, Advanced Micro Devices fell 5.7%. Pandora plunged almost 17% after Apple announced plans to launch a competing live streaming music option. Amazon added 3.1% after the company unveiled four new tablets on Thursday, but didn't announced a new phone. Central-bank strategies will be the dominating forces driving stocks next week, with European policy makers looking for a high-court ruling on euro-zone bailout programs, and investors watching for word from the Federal Reserve about another round of stimulus.Reports on retail sales and industrial production are slated for release next week. From the corporate front, the expected launch of the next version of the iPhone, a midquarter update from Texas Instruments and a monthly sales report from McDonald’s will also catch investor's attention. Implied volatility inched lower on moderate trading volumes.
