Wall Street snaps 4-day losing streak

NEW YORK: US stocks rose on Thursday, Sept 3, snapping a four-day losing streak, after stronger-than-expected retail sales data eased concerns about the economy before Friday's important jobs data, according to Reuters.

After sharp declines this week, the broad S&P 500 index finished above 1,000 as retailers' August sales were complemented by a survey showing improvement in the U.S. services sector.

Financials and retail stocks were among the day's leaders, with Bank of America up 3.5 percent to US$16.84, and Citigroup up 4.8 percent at US$4.77. The S&P financial sector index was up 2.3 percent.

"It's the belief the economy is in the recovery stage. What's rallying today are things associated with economic growth," said Owen Fitzpatrick, head of U.S. Equity Group, Deutsche Bank Private Wealth Management.

"Granted, we're due for a pause, but the reality is we are in an economic recovery."

The Dow Jones industrial average was up 63.94 points, or 0.69 percent, at 9,344.61. The Standard & Poor's 500 Index was up 8.49 points, or 0.85 percent, at 1,003.24. The Nasdaq Composite Index was up 16.13 points, or 0.82 percent, at 1,983.20.

The S&P is up about 48 percent from its 12-year closing low on March 9.
The Labor Department is due to release its non-farm payrolls figures on Friday morning, which should shed light on the outlook for the economic recovery.

The payrolls report, accompanied by the U.S. unemployment rate for August, will come before a long Labor Day holiday weekend. U.S. financial markets will be closed on Monday.Among retailers posting higher-than-expected sales in August were Costco Wholesale Corp and Target Corp.

Costco's shares, which were upgraded by JPMorgan, climbed 8.6 percent to US$55, while Target gained 1.7 percent to US$47.07. The S&P retail index rose 2.03 percent.

Gold prices climbed to their highest since late February, with spot gold hitting a peak of US$997.20 an ounce before paring gains to US$992.25 at the end of the day in New York. Mining company shares rose, with Newmont Mining Corp up 4.5 percent to US$45.77 and Freeport-McMoRan Copper & Gold Inc 4.34 percent higher at US$64.48.

The PHLX Gold/Silver index gained 4.67 percent.
On the downside, credit-rating agency Moody's Corp and McGraw-Hill Cos, the parent of credit-ratings firm Standard & Poor's, slid after a federal judge ruled the two companies must defend fraud charges in a class-action lawsuit.