US STOCKS-Wall St set for bumper week as economy fears ease

* Payrolls better than expected

* ISM shows services sector slowing

* Dow up 0.9 pct, S&P up 0.9 pct, Nasdaq up 1 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates early afternoon midday)

By Edward Krudy

NEW YORK, Sept 3 (BestGrowthStock) – Wall Street was set to close
out its best week in six on Friday after recent economic data,
including a stronger-than-expected jobs report, showed the U.S.
economy may be in better shape than thought.

The risk aversion of the summer months, which had pressured
stocks, showed signs of lessening. The S&P 500 has gained
almost 5 percent in the last three days. Treasury prices have
eased, while the U.S. dollar dipped as investors moved out of

An August non-farm payrolls report that showed fewer job
losses than forecast was the latest data to help lift gloom
over Wall Street. But the optimism was checked after another
report showed growth in the U.S. services sector eased to its
slowest pace since the start of the year.

“Absolute caution needs to continue, and we’re going to
have more choppiness,” said Christian Wagner, chief investment
officer at Longview Capital Management in Wilmington, Delaware.
“I think that if we end up close to break-even for the year
that’ll be great.”

The Dow Jones industrial average (.DJI: ) gained 88.14
points, or 0.85 percent, to 10,408.24. The Standard & Poor’s
500 Index (.SPX: ) gained 10.14 points, or 0.93 percent, to
1,100.24. The Nasdaq Composite Index (.IXIC: ) gained 21.60
points, or 0.98 percent, to 2,221.61.

Stocks sold off sharply over the summer due to concerns that
the U.S. economy may be headed for a double-dip recession. But
a report that showed the manufacturing sector grew more than
expected in August sparked a rally on Wednesday that helped
stocks to their best day in eight weeks.

This week’s move has helped the S&P 500 work off some of
its nearly oversold condition as its relative strength index,
or RSI, moves into neutral territory around the 56.5 mark.

RSI compares recent gains and losses and helps determine if
a security or an index is under- or overvalued.

“If these (jobs) numbers would have been last week, I don’t
think it would have had a positive influence,” said Alan B.
Lancz & Associates, an investment advisory firm in Toledo,
Ohio. “It’s one step forward phase, after going backward.”

The S&P has risen 3.5 percent so far this week but is still
down about 10 percent from a yearly high in April.

U.S. employment fell for a third straight month in August,
the Labor Department said on Friday. But the loss of 54,000
non-farm jobs was far less than the 100,000 expected by
economists polled by Reuters, and private hiring surprised on
the upside.

For Reuters Insider on the jobs report

However, that was tempered by the ISM non-manufacturing
report that showed the vast U.S. services sector grew in August
at its slowest pace since January.

There was some support on the corporate front. Take-Two
Interactive Inc (TTWO.O: ) jumped 8 percent to $9.56 a day after
the video game maker’s quarterly profit smashed Wall Street’s
expectations of a loss, and it raised its forecast.

However, Campbell Soup Co (CPB.N: ) shed 3.5 percent to $36
after posting lower-than-expected quarterly sales and
forecasting growth below its long-term target as it grapples
with a weak economy. [ID:nN03271791]

Celldex Therapeutics Inc (CLDX.O: ) sank 25.5 percent to
$3.55 after Pfizer Inc (PFE.N: ) ended a co-development deal on
Celldex’s lead product, a cancer vaccine. [ID:nSGE6820ET]

In contrast, shares of Dow component Pfizer were unchanged
at $16.40.
(Reporting by Edward Krudy; Additional reporting by Rodrigo
Campos; Editing by Kenneth Barry)

US STOCKS-Wall St set for bumper week as economy fears ease