(Refiles to fix grammar in headline)
* ECB cuts rates below zero to spur bank lending
* Preview: U.S. job growth seen slowing, unemployment to
* Indexes up: Dow 0.6 pct, S&P 0.7 pct, Nasdaq 1.1 pct
By Angela Moon
NEW YORK, June 5 The Dow and the S&P 500 both
ended at new highs on Thursday after the European Central Bank
cut rates to record lows and pledged to do more if needed to
fight off the risk of deflation.
Investors are now focused on Friday's U.S. payrolls report
for May. It is expected to show job growth slowed last month and
the unemployment rate ticked up, but not by enough to upset the
view that the economy is bouncing back.
The number of Americans filing new claims for unemployment
benefits rose last week, but the underlying trend continued to
point to a firming labor market.
"The number of data we got this week so far on the labor
market have not provided a clear direction for tomorrow's
numbers," said Randy Frederick, managing director of trading and
derivatives with the Schwab Center for Financial Research in
"So I wouldn't be surprised if the market sold on the
(payrolls) news tomorrow, but it's likely to just be a knee-jerk
The day's gains were broad, with all ten S&P 500 sectors
ending higher. Industrials rose 1.1 percent and
financials 0.9 percent. The day's weakest sector was
telecom, considered a defensive group, which rose less
than 0.1 percent.
The Dow Jones industrial average rose 98.58 points or
0.59 percent, to 16,836.11, the S&P 500 gained 12.58
points or 0.65 percent, to 1,940.46 and the Nasdaq Composite
added 44.59 points or 1.05 percent, to 4,296.23.
With Thursday's advance, the S&P has risen in nine of the
past 11 sessions, up 3.6 percent over that period, and ended at
a record high five times in the past six sessions.
The ECB cut the deposit rate to -0.10 percent and launched a
series of measures to pump money into the sluggish euro zone
economy. It stopped short of full-fledged quantitative easing
(QE) - printing money to buy assets - but ECB President Mario
Draghi said more action would come if necessary.
Also supporting the day's gains, hedge fund manager David
Tepper was reported by CNBC as saying the ECB partly
"alleviated" his concerns about the market, after having said
last month he was worried stock prices were stretched.
Amazon.com Inc revived speculation about its next
major product on Wednesday, using a mysterious YouTube video and
website post to tease a June 18 "launch event" in Seattle to be
hosted by CEO Jeff Bezos. The stock jumped 5.5 percent to
Sprint has agreed to pay about $40 per share to buy
T-Mobile US, marking further progress in the attempt to
merge the third and fourth-biggest U.S. mobile network
operators, a person familiar with the matter told Reuters on
Wednesday. Sprint shares fell 4 percent to $9.02 while T-Mobile
US dropped 2.3 percent to $33.49.
Rite Aid shares slid 7.4 percent to $7.87 after it
estimated first-quarter profit much below expectations.
Ciena Corp shares jumped 18.4 percent to $22.48
after the company posted earnings that beat expectations and
gave a revenue outlook above forecasts.
Trading volume was around 5.91 billion shares on U.S.
exchanges, slightly above last month's average of 5.75 billion,
according to data from BATS Global Markets.
(Reporting by Angela Moon; Editing by Nick Zieminski)