This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stocks Soar on ECB Bond-Buying Plans, Jobs Report Optimism

The ECB announced earlier Thursday that it would leave its benchmark rate unchanged at 0.75%.

The central bank also cut its outlook on the eurozone economy, predicting it will contract by between 0.2% and 0.6% this year. It also reduced its growth forecasts for next year.

A spate of uplifting datapoints on U.S. employment was released before the opening bell, prompting many economists to re-evaluate their gloomy outlook for Friday's nonfarm payrolls report for August.

"All this evidence suggests that our forecast of a 100,000 increase in August's official non-farm payroll employment measure may be too pessimistic," said Paul Ashworth, chief U.S. economist at Capital Economics.

Still, "we wouldn't expect this improvement to persuade the Fed to hold fire next week. Employment would need to grow by a lot more than 200,000 per month to bring the unemployment rate down at a pace more agreeable to the Fed," Ashworth continued.

"This surely will tilt expectations to the upside for tomorrow's employment report," said Dan Greenhaus, chief global strategist at BTIG.

The ADP report Thursday showed that employment in the U.S. nonfarm private business sector rose to 201,000 in August, up from an upwardly revised 173,000 in July. Economists forecast that private-sector employment fell to 143,000 last month.

The Labor Department said that initial jobless claims for the week ended Sept. 1 fell by 12,000 to 365,000, and that the four-week moving average rose 250 to 371,250.

Continuing claims for the week ended Aug. 25 fell to 3.322 million from 3.328 million the prior week.

Economists predicted that initial jobless claims would fall to 373,000 and that continuing claims would dip to 3.3 million.

Adding to the uplifting employment reports, consulting firm Challenger, Gray & Christmas said that planned layoffs dropped in August to a 20-month low.

In more positive data, the Institute for Supply Management said that its ISM Non-Manufacturing Index came in at 53.7 in August, better than the 52.4 economists were expecting.

The FTSE in London finished up 2.11%, while the DAX in Germany rose 2.91%.

The Hong Kong Hang Seng index tacked on 0.34% and the Nikkei in Japan closed up 0.01%.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
OCZ $0.00 0.00%
AMZN $479.54 -4.50%
AAPL $93.58 -0.47%
FB $98.35 -5.50%
GOOG $668.92 -2.10%


Chart of I:DJI
DOW 15,838.48 -366.49 -2.26%
S&P 500 1,831.06 -48.99 -2.61%
NASDAQ 4,223.1720 -139.9720 -3.21%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs