Wall Street Pares Gains Ahead Of Jobs Data


Wall Street Pares Gains Ahead Of Jobs Data

US stocks ended marginally higher after paring most of their early morning gains ahead of the highly anticipated jobs report jobs report on Friday.

Most of the major Indexes relinquished stronger early morning gains of more than 1% as traders awaited Friday’s employment report.

The employment report is viewed by many as the last piece of the he jigsaw before the Federal Reserve makes its decision concerning the US monetary policy in a two day meeting later this month.

The Dow Jones Industrial Average relinquished most of its 200 point morning jump to end 23.38 or 0.1% higher at 16,374.56 points.

The S&P 500 Index ended 2.27 points or 0.1% higher at 1951.53 points while the Nasdaq Composite ended 16.48 points higher at 4,733.50 points.

“Whether it’s in the U.S., Japan or Europe, the market likes quantitative easing,” Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey, told Reuters.

“But China concerns have not gone away. I’m expecting choppiness for a while longer.”

In separate data, the US trade deficit fell by 7.4% in the month of July to a seasonally adjusted $49 billion on a reduction in the number of imports in cell phones and pharmaceuticals.

Also aiding the morning rally were remarks by the European Central Bank Presidents Mario Draghi who strongly hinted on possible additional stimulus measures.

The President said in a press conference that the European Central bank was ready to implement its asset buying program which is slated to run up to September 16th and beyond “if necessary”.

Most analysts interpreted this as commitment by the president to driving the European economic recovery forward.

“The focus seems to have shifted from the China issue to what the economic data tells us about [U.S.] monetary policy,” said Art Hogan, chief market strategist at Wunderlich Securities, told the Wall Street Journal.

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com