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US Stocks Move Slightly Higher Thursday09/03 15:38

   U.S. stocks moved slightly higher Thursday as markets calmed after a recent 
bout of turmoil. Investors were encouraged by comments from European Central 
Bank policymakers, who said they were willing to provide more stimulus to the 
region's economy, if needed.

   NEW YORK (AP) --- U.S. stocks moved slightly higher Thursday as markets 
calmed after a recent bout of turmoil. Investors were encouraged by comments 
from European Central Bank policymakers, who said they were willing to provide 
more stimulus to the region's economy, if needed.

   Investors now turn to Friday, when a key jobs report will be released that 
could help determine whether or not the Federal Reserve raises interest rates 
this month.

   "There's a lot of trepidation in the market over what the Fed will do, and 
it's only getting worse as we get closer to the meeting," said Kristina Hooper, 
head of investment strategies at Allianz Global Investors. The Fed's two-day 
meeting begins Sept. 16.

   The Dow Jones industrial average added 23.38 points, or 0.1 percent, to 
16,374.76. The Standard & Poor's 500 index rose 2.27 points, or 0.1 percent, to 
1,951.13 and the Nasdaq composite fell 16.48 points, or 0.4 percent, to 
4,733.50.

   Stocks started the day solidly higher, but momentum waned as the day dragged 
on. Major indexes dipped briefly into the red by mid-afternoon before ending 
mostly higher.

   Investors were initially encouraged by news out of the European Central 
Bank, where President Mario Draghi said the bank is ready to give the eurozone 
a bigger dose of stimulus should inflation across the 19-country bloc fail to 
pick up. Along with keeping interest rates low, the ECB is pumping 60 billion 
euros a month into the region's economy through purchases of government and 
corporate bonds. The program is slated to run at least through September 2016.

   "Draghi said in 2012 he would do whatever it takes to grow the eurozone 
economy and he's holding to that promise," said Quincy Krosby, a market 
strategist at Prudential Financial.

   European markets jumped on the news. Germany's DAX closed up 2.7 percent, 
France's CAC-40 rose 2.2 percent and U.K.'s FTSE 100 rose 1.8 percent.

   At the same time the ECB is stimulating Europe's economy, the Federal 
Reserve could raise U.S. interest rates for the first time since the financial 
crisis. While chances of a September interest rate increase have diminished 
because of signs of weakening global growth and a sell-off in Chinese stocks, 
many believe the growing U.S. economy may be ready to withstand higher interest 
rates.

   Friday's jobs report for August, a key gauge of how the U.S. economy is 
doing, could play a big role in guiding that decision by the Fed. Economists 
are forecasting that employers created 220,000 jobs last month and that the 
unemployment rate fell to 5.2 percent.

   The price of oil followed the stock market higher. U.S. crude rose 50 cents 
to close at $46.75 a barrel in New York. Brent crude, a benchmark for 
international oils used by many U.S. refineries, rose 18 cents to close at 
$50.68 a barrel in London.

   In other futures trading on the NYMEX:

   --- Wholesale gasoline rose 1.2 cents to close at $1.437 a gallon.

   --- Heating oil rose 1 cent to close at $1.619 a gallon.

   --- Natural gas rose 7.7 cents to close at $2.725 per 1,000 cubic feet.

   In other markets, U.S. government bond prices rose. The yield on the 10-year 
Treasury note fell to 2.16 percent from 2.19 percent late Wednesday. The euro 
fell to $1.1134 from $1.1238. The dollar fell to 119.91 yen from 120.24 yen.

   The price of gold fell $9.10 to settle at $1,124.50 an ounce, silver rose 
four cents to $14.70 an ounce and copper rose six cents to $2.39 a pound.


(KA)


 
 
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