Upbeat Jobs Data Leads To Early Strength On Wall Street - U.S. Commentary

(RTTNews) - With upbeat jobs data generating some buying interest, stocks have moved modestly higher in early trading on Thursday. The major averages have all climbed into positive territory after ending the previous session roughly flat.

The major averages have recently pulled back off their highs for the young session but are holding on to modest gains. The Dow is up 72.02 points or 0.4 percent at 16,432.20, the Nasdaq is up 6.92 points or 0.2 percent at 4,364.90 and the S&P 500 is up 5.82 points or 0.3 percent at 1,879.63.

The early strength on Wall Street comes following the release of a report from the Labor Department showing that initial jobless claims fell by more than expected in the week ended March 1st.

The report said initial jobless claims dropped to 323,000, a decrease of 26,000 from the previous week's revised figure of 349,000. Economists had expected jobless claims to dip to 338,000.

With the bigger than expected decrease, jobless claims fell to their lowest level since hitting 305,000 in the last week of November.

The data represents an upbeat sign for the labor market ahead of tomorrow's closely watched monthly jobs report.

Nonetheless, traders seem somewhat reluctant to make significant moves ahead of the jobs report, limiting the upside for the markets.

Separate reports showing slower than previously estimated fourth quarter productivity growth and a bigger than expected drop in January factory orders may also be keeping buying interest in check.

Steel stocks have still shown a strong upward move in early trading, however, with the NYSE Arca Steel Index rising by 1.5 percent. The index is climbing further off Monday's one-month closing low.

Gold, railroad, and banking stocks are also seeing early strength, while tobacco stocks continue to give back ground following the rally seen earlier this week.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Thursday. Japan's Nikkei 225 Index surged up by 1.6 percent, while Hong Kong's Hang Seng Index advanced by 0.6 percent.

The major European markets have also moved to the upside on the day. While the French CAC 40 Index has risen by 0.7 percent, the U.K.'s FTSE 100 Index is up by 0.3 percent and the German DAX Index is up by 0.1 percent.

In the bond market, treasuries are moving moderately lower, pulling back further off their recent highs. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3.6 basis points at 2.734 percent.