By Anora Mahmudova and Sara Sjolin, MarketWatch
Jobless claims fall to 268,000, level last seen 15 years ago
NEW YORK (MarketWatch) -- After an initial tepid start, U.S.
stocks moved sharply higher on Thursday, with the main benchmarks
on track to wrap up the Easter-shortened week with modest
gains.
Better-than-expected jobless claims pointed to continued
strength in the labor market, setting the tone for Friday's nonfarm
payrolls.
The S&P 500 (SPX) was up eight points, or 0.4% at 2,067 with
all of its 10 main sectors trading higher. The Dow Jones Industrial
Average (DJI) was up 60 points, or 0.3%, to 17,756. The Nasdaq
Composite (RIXF) added 9 points, or 0.2%, to 4,889.
U.S. stock markets are closed for Good Friday, so investors
won't get a chance to react to the highly anticipated jobs report
until Monday, but there might be some hints at what the market
thinks reflected in futures, which are briefly open. Read: When do
markets close for Good Friday
(http://www.marketwatch.com/story/when-do-markets-close-for-good-friday-2015-03-27)
Sandy Lincoln, chief markets strategist at BMO Global Asset
Management, said he is optimistic about equities at this point.
"I believe the beta trade is over and alpha trade is coming, he
said referring to finding corporations that are able to grow the
top line in current economy.
He cautioned that there are no cheap assets. "Equities are not
cheap, but fairly valued, while bonds are expensive," he said.
The Federal Reserve has said it is looking closely at the labor
market when determining the time for a rate hike, so the closely
watched employment report set for Friday is seen as a significant
economic gauge.
Thursday's data: But before investors can relax over the
three-day weekend, they have to chew their way through a round of
economy releases on Thursday.
Initial jobless claims
(http://www.marketwatch.com/story/jobless-claims-fall-20000-to-268000-near-post-recession-low-2015-04-02)
for the week ended March 28 fell by 20,000 to a seasonally adjusted
268,000, the levels last seen 15 years ago, the government agency
said. The number is far below the forecasts by economists polled by
MarketWatch.
The U.S. trade deficit sank 17%
(http://www.marketwatch.com/story/us-trade-deficit-sinks-17-in-february-to-354-billion-2015-04-02)
in February to the lowest level since 2009, largely because of
cheaper oil, but exports also fell to a 2 1/2 year bottom in a sign
that a stronger dollar and a weak global economy are hurting
American companies.
Also, Factory orders for February ticked up 0.2%.
Stocks to watch:CarMax Inc.(KMX) shares jumped more than 8%
after the company reported on Thursday that its fourth-quarter
profits surged 44%, as sales remained strong for the used-car
retailer. The stock was the best performer on the S&P 500.
Its rival AutoNation Inc.(AN) shares rose sharply after sales
jumped 10%.
Google Inc. (GOOG) (GOOGL) shares were hit on Thursday, making
it the worst performer on the S&P 500, after news reports that
the Europe's competition regulators is preparing to move against
the search giant in the next few weeks.
For more on notable movers, read Movers & Shakers column
(http://www.marketwatch.com/story/micron-in-spotlight-on-earnings-beat-2015-04-02).
Other markets: European stocks ended mostly lower
(http://www.marketwatch.com/storyno-meta-for-guid) as investors
there were also wary ahead of the long weekend and nonfarm
payrolls. Most European stock markets are closed on Friday and
Monday.
Asia markets closed sharply higher
(http://www.marketwatch.com/storyno-meta-for-guid)for the most
part. Oil futures eased
(http://www.marketwatch.com/storyno-meta-for-guid), while metals
prices dropped across the board. The dollar traded mixed against
other major currencies.
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