The Standard & Poor’s 500 index increased 20 points, or 1.1 percent, to 1,933. This scenario should be supportive for USA stocks.
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The market was previously weighed down by news that China’s securities regulators have urged brokerages to clean up “grey market” margin lending by the end of September, as Beijing pursues steps to back-stop the country’s tumbling stock markets. The main benchmark index S&P 500 and Dow industrials closed marginally higher, while the Nasdaq Composite ended with a loss.
It will be the last jobs report Federal Reserve policymakers have before their next policy meeting later this month. The private sector survey provided a preview of Friday’s government employment report on public and private employers. Meanwhile, Japan’s benchmark Nikkei 225 index snapped a four-day losing streak, edging up 0.5 percent. It’s the last major piece of economic data likely to impact whether the Fed raises interest rates later this month.
The CBOE Volatility Index (VIX – 27.80) muscled 2.2 points, or 8.6%, higher, for its second-highest weekly close since late 2011. Apple, one of the most heavily traded stocks of recent days, is 1.3% lower, while Facebook lost 0.8% in premarket trading.
US crude was down 0.8 percent at $44.86 a barrel after jumping more than six percent Friday on frenetic short-covering fueled by violence in Yemen, a storm in the Gulf of Mexico and refinery outages. On the London ICE Futures Exchange, Brent crude, the global benchmark for oil prices, ticked up 0.04 percent to $50.52.
Bond prices rose. The yield on the 10-year Treasury note fell to 2.14 percent. The S&P 500 fell 3.3% and is once again in a so-called correction.
The unemployment rate, however, inched down to 5.1 percent, beating market estimates of 5.2 percent and logging the lowest level in seven years.
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Handbags seller Vera Bradley (NYSE:VRA) shot up US2.92 to US13.35 after better than expected results announced this morning but discount retailer Dollar Tree (NASDAQ:DLTR) was friendless down US2.43 at US67.22 after a disappointing trading update released after the bell yesterday.
