MARKET SNAPSHOT: Dow, S&P 500 Post Small Gains As Stocks Retreat Ahead Of Key Jobs Report
September 03 2015 - 5:26PM
Dow Jones News
By Wallace Witkowski and Anora Mahmudova, MarketWatch
ECB's Draghi says central bank will 'fully implement'
asset-buying program
A Wall Street rally ran out of steam, limping to the close of
Thursday's session as oil futures relinquish early gains ahead of
highly anticipated Friday employment report.
The jobs report is widely viewed as the last piece of U.S. data
puzzle before the Federal Reserve makes its interest-rate policy
decision at its two-day meeting beginning Sept. 16.
On Thursday, early investor optimism, sparked by healthy data
and comments viewed as dovish from European Central Bank President
Mario Draghi faded as stocks took its cues from a retreat in oil
futures late in the trading session.
The S&P 500 , which rallied more than 1% in early session,
closed 2.27 points, or 0.1% higher to 1,951.13, with eight of its
10 main sectors finishing in positive territory.
The Dow Jones Industrial Average relinquished its 200-point pop
to finish 23.38 points, or 0.1%, higher at 16,374.76, while the
Nasdaq Composite ended the day down 16.48 points, or 0.4% at
4,733.50.
Crude oil rose as high
(http://www.marketwatch.com/story/crude-oil-prices-edge-lower-in-calmer-trading-2015-09-03)as
$48.42 earlier in the day but the commodities' retreat below $47 a
barrel, weighed on energy stocks, turning one of the best
performing sectors on the day into its biggest laggard.
An earlier move higher in stocks had come as Draghi at a news
conference
(http://blogs.marketwatch.com/thetell/2015/09/03/ecb-live-blog-will-china-worries-falling-oil-spark-more-easing/)
reasserted that the central bank was ready to "fully implement" its
asset-buying program, which is scheduled to run until Sept. 16 "or
beyond" if necessary. However, he said the committee didn't discuss
"increasing the size or pace of purchases."
While there had been some risk that Draghi wouldn't take the
easing plan to the next level, the news was welcome to investors as
a sign that the central banker was committed to driving the
economic recovery in Europe, said Mark Luschini, chief investment
strategist at Janney Montgomery Scott.
"Draghi's action shows [the ECB is] flexible with what they are
willing to do," Luschini said.
Thursday's actions comes amid relative quiet in Asian markets
with the volatile Chinese 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 an improving labor market and set the tone
for Friday's nonfarm payrolls report.
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, indicating companies
aren't laying off many workers.
In other data, 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).
Movers and shakers: L Brands Inc. (LB) shares climbed 4.1% 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 6% after
Federal Communications Commission approved its acquisition of
Verizon's Wireline operations In California, Florida And Texas.
Joy Global Inc.(JOY) plummeted 15% after the company reported
worse-than-expected quarterly profit and revenue as weak demand for
commodities continues to batter the mining-equipment maker.
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.
Gold
(http://www.marketwatch.com/story/gold-retreats-as-focus-turns-to-jobs-report-us-economy-2015-09-03)
also dipped, while the dollar gained against most other major
currencies.
--Sara Sjolin in London contributed to this article.
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(END) Dow Jones Newswires
September 03, 2015 17:11 ET (21:11 GMT)
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