* U.S. stocks edge higher after U.S. economic data
* Oil prices lower on concerns of labor market, stockpiles
* All eyes on Friday's U.S. payrolls report (Updates with U.S. market open and economic data, changes byline, dateline; previous LONDON)
By Manuela Badawy
NEW YORK, Sept 2 (Reuters) - Stocks rose and U.S. Treasuries fell on Thursday as U.S. data showed strength in the economy, but investors were mainly focused on Friday's closely followed U.S. unemployment report for economic clues.
Oil prices eased as a drop in weekly U.S. jobless claims, an unexpected rise in pending home sales in July and slightly stronger factory orders failed to soothe concerns about economic weakness in the world's largest energy consumer.
The euro was flat against the dollar after comments from European Central Bank President Jean-Claude Trichet and the decision by the bank's Governing Council to keep interest rates at a record low of 1 percent. For details, see [ID:nLDE6810DM].
U.S. Treasury debt prices eased as some strength on Wall Street undermined the safe-haven appeal of government debt.
The Dow Jones industrial average <.DJI> was up 1.67 points, or 0.02 percent, at 10,271.14. The Standard & Poor's 500 Index <.SPX> was up 3.53 points, or 0.33 percent, at 1,083.82. The Nasdaq Composite Index <.IXIC> was up 8.83 points, or 0.41 percent, at 2,185.67.
"The market was braced for a diaster after what we saw with existing sales, so this is positive, while the factory orders looked a little light compared with expectations," said John Canally, investment strategist at LPL Financial in Boston.
"People are reluctant to do much of anything today except position themselves for tomorrow and digest yesterday's gains."
World stocks <.MIWD00000PUS> hit a two-week high earlier as optimism from strong U.S. and Chinese manufacturing data extended into a second day.
"I would expect that we are going to have a pretty quiet day today. I would say if we are able to hold even through the day and hold on to (Wednesday's) gains that is a good sign," said Peter Jankovskis, co-chief investment officer at Oakbrook Investments LLC, in Lisle, Illinois.
The FTSEurofirst 300 index <.FTEU3> of top European shares was slightly lower after surging 2.9 percent on Wednesday, their biggest gain since May, on upbeat manufacturing data from China and the United States.
The market showed little reaction to Thursday's decision by the European Central Bank to keep interest rates on hold at a record low, as expected, amid tepid economic recovery and persistent concerns about the banking sector. [ID:nLDE68114V]
The euro
France and Spain sold 12.2 billion euros of bonds, with the average yield on the 5-year Bono dropping at auction and the paper easily absorbed as the yield fell after the tender.
Against the Japanese yen, the dollar
The focus now is on the Labor Department's widely watched monthly employment report, with analysts predicting U.S. non-farm payrolls probably fell for a third straight month in August. [ID:nN31235915]
Currency markets are not paying too much attention "to anything but the jobs number tomorrow," said Greg Salvaggio, vice president of trading at Tempus Consulting in Washington.
U.S. Treasury debt prices extended early losses after the release of July factory orders and pending home sales data.
The benchmark 10-year U.S. Treasury note
U.S. crude oil