By Anora Mahmudova and Sara Sjolin, MarketWatch
ECB's Draghi says central bank will 'fully implement'
asset-buying program
U.S. stocks rose for a second-straight session Thursday as
investors digested dovish comments from European Central Bank
President Mario Draghi as well as domestic economic reports. A jump
in oil prices lifted energy and materials stocks.
The ECB kept interest rates unchanged as expected at its
policy-setting meeting. During a press conference,
(http://blogs.marketwatch.com/thetell/2015/09/03/ecb-live-blog-will-china-worries-falling-oil-spark-more-easing/)
Draghi reasserted the central bank was ready to "fully implement"
its asset-buying program, which intended to run to Sept.16 "or
beyond" if necessary. However, he said the committee did not
discuss "increasing the size or pace of purchases."
The S&P 500 gained 15 points, or 0.8%, to 1,964, with all 10
main sectors trading higher. The Dow Jones Industrial Average added
100 points, or 0.6%, to 16,454. The Nasdaq Composite rose 20
points, or 0.4%, to 4,770.
Gains on Wall Street follow an upbeat session in Europe, while
the volatile Chinese markets are closed for two days.
"China's holidays came at a good time, as markets are able to
pause after brutal selloffs last week," said Michael Antonelli,
equity sales trader at R.W Baird & Co.
"Trading is less crazy this week, which could be due to a
combination of closed markets in China and an upcoming long holiday
weekend here," Antonelli said.
On Thursday, stock markets in the world's second-largest economy
were closed for China's World War II victory day parade
(http://www.marketwatch.com/story/china-to-close-stock-market-to-honor-world-war-ii-anniversary-2015-09-01),
providing "much desired respite from the economy and market that
has been at the heart of the elevated global volatility of late,"
said analysts at Accendo Markets in a note.
Treasury Secretary Jacob Lew said in a CNBC interview aired
Thursday morning that he is keeping a "careful eye on market
volatility"
(http://www.marketwatch.com/story/treasurys-lew-stress-in-financial-markets-no-cause-for-immediate-concern-2015-09-03-6912647)
and looking at any related risk to the U.S. economy.
Read: As investors flee China, they should consider India
(http://www.marketwatch.com/story/as-investors-flee-china-they-should-consider-india-2015-09-02)
U.S. data: Wednesday's private-sector jobs report as well as
jobless claims point to improving labor market and set the tone to
Friday's official payrolls.
The number of people who applied for U.S. unemployment benefits
(http://www.marketwatch.com/story/jobless-claims-rise-to-two-month-high-2015-09-03)rose
at the end of August to the highest level in two months, but
initial claims are still at very low levels that indicate companies
aren't laying off many workers.
The U.S. trade deficit fell by 7.4% in July to a seasonally
adjusted $41.9 billion, mainly because of lower imports such as
cellphones and pharmaceutical products.
The Institute for Supply Management
(http://www.marketwatch.com/story/ism-services-index-slows-in-august-but-tops-forecast-2015-09-03)
said on Thursday its services index slipped in August but to a very
strong reading indicating growth in the sector. The services index
fell to 59% in August from 60.3% in July
(http://www.marketwatch.com/story/ism-services-index-surges-to-10-year-high-in-july-2015-08-05).
"The headlines numbers have stayed the same for a long time.
Claims have averages at 285,000, non-farm payrolls averaged between
185,000 and 220,000, PMI's hovered near 51 - it's a slow growth
environment. The Federal Reserve wants to raise rates for reasons
other than economic data," said Antonelli.
Movers and shakers: L Brands Inc. (LB) shares climbed 3.4% after
the retailer said its August sales rose from the previous year,
with same-store sales topping Wall Street forecasts.
Shares of Frontier Communications Corp.(FTR) jumped 4.6% after
Federal Communications Commission approved its acquisition of
Verizon's Wireline operations In California, Florida And Texas.
Joy Global Inc.(JOY) plummeted 18% after the company reported
worse-than-expected quarterly profit and revenue as weak demand for
commodities continues to batter the mining-equipment maker.
Geron Corp.(GERN) surged 18% after the biotech company late
Wednesday said the New England Journal of Medicine was going to
publish two papers showing positive results for its drug
imetelstat.
Lannett Co. Inc.(LCI) jumped 15% after the pharmaceutical
company said it'll buy UCB SA's (UCB.BT) Kremers Urban
Pharmaceuticals Inc. for $1.23 billion
(http://www.marketwatch.com/story/lannett-to-acquire-ucbs-kremers-urban-unit-2015-09-02-184854134).
Other markets: Asian markets closed mostly higher
(http://www.marketwatch.com/storyno-meta-for-guid), inspiring gains
across Europe's equity benchmarks
(http://www.marketwatch.com/story/european-markets-rise-as-investors-wait-for-qe-hints-from-draghi-2015-09-03)
as well. Markets in Shanghai and Hong Kong were closed for a
two-day holiday to mark the 70th anniversary of the end of the
World War II.
Crude oil rose nearly 2% adding to a 1.9% gain from Wednesday
(http://www.marketwatch.com/story/brent-back-below-50-as-oil-prices-keep-sliding-2015-09-02).
Gold also dipped, while the dollar traded mixed against other
major currencies.
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(END) Dow Jones Newswires
September 03, 2015 10:22 ET (14:22 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.