WALL STREET P.M. 09.03.09:STOCKS RECOVER GROUND

DJIA: +63.94 CLOSE 9,344.61
S&P 500 +8.49 CLOSE 1,003.24
NASDAQ +16.13 CLOSE 1,983.20

MARKET ENDS 4 DAYS OF LOSSES
ASSOCIATED PRESS: Stocks are higher after a four-day slide but investors are holding off making big moves ahead of a key government report on unemployment . . . READ MORE

FRIDAY JOBS REPORT ANTICIPATED
THE STREET: All signs are pointing to a worse-than-expected nonfarm payrolls report Friday morning, market analysts say, but they argue that even a disappointing release won't put a significant dent in equity markets . . . The Labor Department's official jobs report, due at 8:30 a.m. EDT Friday, is expected to say the U.S. economy lost 225,000 jobs last month, according to a Reuters poll of economists. The unemployment rate is expected to tick higher to 9.5% from 9.4% in July . . . READ MORE

REUTERS: Friday's U.S. government payroll report will likely bring volatility to the U.S. Treasuries market, if not clarity for investors. Even if the report were to show slowing job losses, it will not be enough to shake nagging doubts that a nascent U.S. economic recovery could fizzle, analysts said on Thursday. "I'm not sure how much the data will tell us," said T.J. Marta, market strategist at Marta on the Markets in Scotch Plains, New Jersey. "We have a pretty big structural employment problem, and that's not going away." . . . Anxiety over the economy has emerged despite this week's encouraging data on the manufacturing and housing sectors . . . READ MORE

JOBLESS CLAIMS EXCEED FORECAST
BLOOMBERG: More Americans than anticipated filed jobless-benefit claims last week, indicating companies remain focused on cutting expenses . . . Applications fell by 4,000 to 570,000 in the week ended Aug. 29, exceeding the 564,000 median forecast of economists surveyed by Bloomberg News . . . The total number of people collecting unemployment insurance climbed . . . The firings are one reason economists project consumer spending, which accounts for 70 percent of the economy, will be slow to strengthen . . . READ MORE

SERVICE-SECTOR LOSSES SLOWING
ASSOCIATED PRESS: The Institute for Supply Management said Thursday that its service index, which covers hospitals, retailers, financial services companies and more, came in at 48.4, up from 46.4 in July. It was the best reading in 11 months . . . Still, any reading below 50 indicates the service sector is shrinking . . . READ MORE

AUGUST RETAIL SALES MIXED
CNN/MONEY: Retailers delivered some of their best same-store sales in almost a year in August, with apparel retailers and discounters benefiting from some early back-to-school buying . . . Still, a quick recovery is not expected since fully half of retailers missed projections, leaving the Christmas buying season still a bit unknown. . . . READ MORE

UNCERTAINTY DRIVES GOLD UP;
PRICE NEARS $1,000 AN OUNCE
REUTERS: Gold prices rallied on Thursday to their highest level since February on strong investment demand amid caution ahead of key U.S. non-farm payrolls data on Friday . . . "Investment demand for gold is still very strong, and that is going to help drive the price higher over time," said Helen Henton, head of commodities at Standard Chartered. "We think it's going to break $1,000 by Q4, mainly driven by a weakening U.S. dollar." . . . READ MORE

WALL STREET JOURNAL: Friday's U.S. nonfarm payrolls data may offer gold the boost it needs to reach a four-digit price, said Larry Young, senior trader with Infinity Futures . . . A weaker-than-expected reading could spark further safe-haven buying, while a stronger-than-forecast number could incite inflation-hedge buying, Young said . . . "We could easily be at a thousand in the blink of an eye." . . . READ MORE

TREASURY TO AUCTION $70 BILLION
MARKETWATCH: Treasurys fell Thursday, sending yields higher, as stocks edged up and the U.S. government said it planned to sell $70 billion in Treasury bonds and notes next week . . . READ MORE