Stocks Opend Higher after Jobs Data, Draghi
U.S. stocks rose in the early trading on Thursday on signs of improvement in the U.S. labor market and news that the European Central Bank agreed on a new bond-buying program to lower struggling euro zone countries’ borrowing costs. The Dow Jones industrial average lately gained 137.45 points, or 1.05 percent, to 13,184.93. The Standard & Poor’s 500 Index rose 14.08 points, or 1.00 percent, to 1,417.52. The Nasdaq Composite Index climbed 28.14 points, or 0.92 percent, to 3,097.41.
A private survey shows U.S. businesses stepped up hiring in August, an encouraging sign ahead of Friday’s government employment report. Payroll provider ADP says businesses added 201,000 jobs last month, the most reported by the survey since March. ADP also said July job growth was stronger than first thought: Employers created 173,000 jobs — 10,000 more jobs than the group reported last month.
The number of Americans filing new claims for jobless benefits fell last week to its lowest level in a month, an upbeat signal for a labor market that has struggled to create enough jobs. Initial claims for state unemployment benefits dropped 12,000 to a seasonally adjusted 365,000, the Labor Department said on Thursday.
European Central Bank President Mario Draghi on Thursday said the central bank would launch an “outright monetary transaction,” or OMT, program in the secondary market, under strict conditionality. This would allow the ECB to decide when to start, continue or suspend bond buys.
The Bank of England stuck to its current policy of government bond purchases on Thursday, as Britain is creeping out of recession and hopes are running high for a sweeping move by the European Central Bank to ease the euro zone crisis.