World stocks rise, but Wall St. dips with oil ahead of jobs report

Thu Jul 7, 2016 4:39pm EDT
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By Dion Rabouin

NEW YORK (Reuters) - Equities markets rose worldwide on a bump from positive U.S. data, though U.S. stocks and long-dated Treasury yields fell along with oil prices amid investor caution ahead of Friday's U.S. nonfarm payrolls report for June.

Oil prices slumped more than 4 percent, wiping out Wall Street's early gains, after the U.S. government reported that a drop in weekly crude stockpiles was close to analysts' forecasts but far less than the decline expected by market optimists.[O/R]

Brent crude LCOc1 fell $2.31 to $46.49 a barrel and U.S. crude CLc1 dropped $2.22 to $45.22 a barrel.[O/R]

"It seems like it’s just an oil story today," said Jack Ablin, chief investment officer at BMO Private Bank in Chicago. "And obviously we’re setting up for the jobs report tomorrow; perhaps there’s some positioning going on there."

U.S. equities opened higher as strong private-sector employment data and a drop in jobless claims pointed to a steadying labor market ahead of the key monthly payrolls report, but reversed course to follow oil prices lower.

The Dow Jones industrial average .DJI fell 22.74 points, or 0.13 percent, to 17,895.88, the S&P 500 .SPX lost 1.83 points, or 0.09 percent, to 2,097.9 and the Nasdaq Composite .IXIC added 17.65 points, or 0.36 percent, to 4,876.81.

The U.S. Labor Department will release its monthly report Friday and investors are anxiously anticipating the data after May's disappointing number called into question the strength of the American job market.

Thursday's ADP national employment report showed that 172,000 jobs were added in the private sector in June, surpassing economists' expectation of 159,000.   Continued...

Traders are pictured at their desks in front of the DAX board at the stock exchange in Frankfurt, Germany, July 7, 2016.      REUTERS/Staff/remote