* 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
[].
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 <> 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 <> 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 <> 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. []
The euro <EUR=> was up 0.02 percent at $1.2814 from a
previous session close of $1.2811 supported by healthy results
at Spanish and French bond auctions and stable global
equities.
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 <JPY=> was down 0.14
percent at 84.30 from a previous session close of 84.420.
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. []
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 <US10YT=RR> was
down 13/32, with the yield at 2.6249 percent. The 30-year U.S.
Treasury bond <US30YT=RR> was down 36/32, with the yield at
3.7107 percent.
U.S. crude oil <CLc1> fell 51 cents, or 0.69 percent, to
$73.40 per barrel on concerns about a slowing economic recovery
and high oil inventories, while spot gold prices <XAU=> rose
$3.75, or 0.30 percent, to $1,247.60.
(Additional reporting by Vivianne Rodrigues, Ryan Vlastelica,
and Chuck Mikolajczak; Editing by Kenneth Barry)
