Investing.com - U.S. stocks rose on Thursday after a string of upbeat economic indicators boosted hopes for a more sustained U.S. economic recovery though many investors remained cautious ahead of the release of Friday's August jobs report.
At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.04%, the S&P 500 index rose 0.12%, while the Nasdaq Composite index rose 0.27%.
The U.S. service sector and labor market continue to recover from the worst downturn since the Great Depression in the U.S. and years of lackluster growth afterwards.
The Institute of Supply Management reported earlier that its U.S. non-manufacturing purchasing managers' index hit a 29-month high of 58.6 in August from 56.0 in July.
Analysts were expecting the index to fall to 55.0 last month.
The numbers sparked demand for the dollar by fueling sentiments that the Federal Reserve may announce at its Sept. 17-18 policy meeting plans to begin winding down its USD85 billion in monthly bond purchases.
Better-than-expected economic indicators out of the manufacturing and labor market bolstered dollar demand as well.
Official data showed that U.S. factory orders fell 2.4% in July, less than an expected 3.3% decline, following an upwardly revised 1.6% rise the previous month.
The Department of Labor, meanwhile, reported that the number of individuals filing for initial jobless benefits in the week ending Aug. 30 fell by 9,000 to 323,000, outpacing forecasts for a decline of 2,000.
Investors took in stride an ADP report showing that 176,000 jobs were created in the U.S. private sector in August, less than an expected 180,000 increase after a downwardly revised 198,000 rise the previous month.
Many investors remained on the sidelines ahead of the release of Friday's August jobs report to serve as clue as to when Federal Reserve asset purchases end.
Monetary stimulus tools have bolstered stock prices, and a decision to unwind them could move markets as investors craft new equities strategies absent of Federal Reserve support.
Leading Dow Jones Industrial Average performers included American Express, up 0.97%, UnitedHealth, up 0.93%, and DuPont, up 0.70%.
The Dow Jones Industrial Average's worst performers included Home Depot, down 1.55%, AT&T, down 1.19%, and Coca-Cola, down 0.78%.
European indices, meanwhile, finished higher.
After the close of European trade, the EURO STOXX 50 rose 0.56%, France's CAC 40 rose 0.66%, while Germany's DAX 30 finished up 0.48%. Meanwhile, in the U.K. the FTSE 100 finished up 0.89%.
On Friday, markets will react to government data on nonfarm payrolls and the unemployment rate as well as data on average hourly earnings.
At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.04%, the S&P 500 index rose 0.12%, while the Nasdaq Composite index rose 0.27%.
The U.S. service sector and labor market continue to recover from the worst downturn since the Great Depression in the U.S. and years of lackluster growth afterwards.
The Institute of Supply Management reported earlier that its U.S. non-manufacturing purchasing managers' index hit a 29-month high of 58.6 in August from 56.0 in July.
Analysts were expecting the index to fall to 55.0 last month.
The numbers sparked demand for the dollar by fueling sentiments that the Federal Reserve may announce at its Sept. 17-18 policy meeting plans to begin winding down its USD85 billion in monthly bond purchases.
Better-than-expected economic indicators out of the manufacturing and labor market bolstered dollar demand as well.
Official data showed that U.S. factory orders fell 2.4% in July, less than an expected 3.3% decline, following an upwardly revised 1.6% rise the previous month.
The Department of Labor, meanwhile, reported that the number of individuals filing for initial jobless benefits in the week ending Aug. 30 fell by 9,000 to 323,000, outpacing forecasts for a decline of 2,000.
Investors took in stride an ADP report showing that 176,000 jobs were created in the U.S. private sector in August, less than an expected 180,000 increase after a downwardly revised 198,000 rise the previous month.
Many investors remained on the sidelines ahead of the release of Friday's August jobs report to serve as clue as to when Federal Reserve asset purchases end.
Monetary stimulus tools have bolstered stock prices, and a decision to unwind them could move markets as investors craft new equities strategies absent of Federal Reserve support.
Leading Dow Jones Industrial Average performers included American Express, up 0.97%, UnitedHealth, up 0.93%, and DuPont, up 0.70%.
The Dow Jones Industrial Average's worst performers included Home Depot, down 1.55%, AT&T, down 1.19%, and Coca-Cola, down 0.78%.
European indices, meanwhile, finished higher.
After the close of European trade, the EURO STOXX 50 rose 0.56%, France's CAC 40 rose 0.66%, while Germany's DAX 30 finished up 0.48%. Meanwhile, in the U.K. the FTSE 100 finished up 0.89%.
On Friday, markets will react to government data on nonfarm payrolls and the unemployment rate as well as data on average hourly earnings.