MARKET SNAPSHOT: U.S. Stocks Book Modest Weekly Gain Ahead Jobs Report, Easter

By Anora Mahmudova and Sara Sjolin, MarketWatch

Jobless claims fall to 268,000, level last seen 15 years ago

NEW YORK (MarketWatch) -- U.S. stocks finished the Easter-shortened week with modest gains after benchmarks advanced slightly on Thursday.

The session's upward momentum was supported by better-than-expected jobless claims, which pointed to continued strength in the labor market, setting the stage for Friday's closely watched nonfarm payrolls.

U.S. stock markets are closed for Good Friday (http://www.marketwatch.com/story/when-do-markets-close-for-good-friday-2015-03-27) and investors won't get a chance to react to the highly anticipated jobs report until Monday, but there might be some hints at what the market thinks reflected in futures, which are briefly open.

On, Thursday, however, the S&P 500 (SPX) closed up 7.27 points, or 0.4% at 2,066.96 and booked a 0.3% gain for the week. The Dow Jones Industrial Average (DJI) added 65.06 points, or 0.4%, to 17,763.24, gaining 0.3% over the week. The Nasdaq Composite (RIXF) ended the session up 6.71 points, or 0.1%, to 4,886.94, but was 0.1% lower for the week.

Also Read: How traders may navigate a jobs report on Good Friday (http://www.marketwatch.com/story/how-traders-may-navigate-a-jobs-report-on-good-friday-2015-04-02)

Michael Arone, chief investment strategist at State Street Global Advisors, expects the jobs gains to come in slightly below the consensus estimate of 245,000.

"The details of the jobs report such as average hourly earnings and wage growth will be far more important for the Fed than the headline number," Arone said.

"The Fed is comfortable with the labor market and it's the enigma with the inflation that is making their jobs challenging," Arone added.

Sandy Lincoln, chief markets strategist at BMO Global Asset Management, said he is optimistic about equities at this point.

But he cautioned that there are no cheap assets. "Equities are not cheap, but fairly valued, while bonds are expensive," he said.

Thursday's data:Initial jobless claims (http://www.marketwatch.com/story/jobless-claims-fall-20000-to-268000-near-post-recession-low-2015-04-02) for the week ended March 28 fell by 20,000 to a seasonally adjusted 268,000, the levels last seen 15 years ago, the government agency said. The number is far below the forecasts by economists polled by MarketWatch.

The U.S. trade deficit sank 17% (http://www.marketwatch.com/story/us-trade-deficit-sinks-17-in-february-to-354-billion-2015-04-02) in February to the lowest level since 2009, largely because of cheaper oil, but exports also fell to a 2 1/2 year low in a sign that a stronger dollar and a weak global economy are hurting American companies.

Also, Factory orders for February ticked up 0.2%.

Stocks to watch:CarMax Inc.(KMX) shares jumped 9.3% after the company reported on Thursday that its fourth-quarter profits surged 44%, as sales remained strong for the used-car retailer. The stock was the best performer on the S&P 500.

Its rival AutoNation Inc.(AN) shares rose 1.1% after sales jumped 10%.

Google Inc. (GOOG) (GOOGL) shares fell 1.3%, after news reports that the Europe's competition regulators is preparing to move against the search giant in the next few weeks.

For more on notable movers, read Movers & Shakers column (http://www.marketwatch.com/story/micron-in-spotlight-on-earnings-beat-2015-04-02).

Other markets: European stocks ended mostly lower (http://www.marketwatch.com/storyno-meta-for-guid) as investors there were also wary ahead of the long weekend and nonfarm payrolls. Most European stock markets are closed on Friday and Monday. Asia markets closed sharply higher (http://www.marketwatch.com/storyno-meta-for-guid)for the most part.

Oil futures (http://www.marketwatch.com/story/oil-futures-settle-lower-on-iran-nuclear-deal-2015-04-02) fell on Thursday amid market expectations that the agreement on Iran's nuclear program will lead to more oil on the world market.

Gold futures (http://www.marketwatch.com/story/gold-dulls-as-encouraging-claims-report-weighs-2015-04-02)settled lower, down 0.6% at $1,200.90 as a better-than-expected reading on jobless claims dented haven demand for the precious metal.

Subscribe to WSJ: http://online.wsj.com?mod=djnwires