NEW YORK — Investors moved back into stocks Thursday after a four-day slide on hopes that a key government report on unemployment due today will confirm that the economy is gaining strength.
The Dow Jones industrial average tacked on 64 points after sliding 300 points since last Friday. Stocks held to a tight range for much of the day in light trading as some investors squeezed in late-summer vacations. Those remaining braced for the August jobs report, due before the opening bell today.
The biggest gains came in the final half-hour, with the Dow doubling its advance, as some traders looked to buy ahead of the jobs data. Economists expect the unemployment rate to edge up to 9.5 percent from 9.4 percent, while the number of layoffs is expected to slow to 225,000 from 247,000. Some economists have raised their expectations in recent weeks, but the sunnier forecasts leave the market more vulnerable to disappointment.
The latest snapshot on employment Thursday offered investors little to go on ahead of today’s report. The Labor Department said the number of people filing for unemployment claims fell last week by 4,000 to 570,000 while the number of people receiving benefits rose. Economists had been expecting a bigger drop, and the report served as a reminder of how difficult a recovery in employment will be.
Reports from retailers offered more insight into consumers’ troubles. Many remain focused on necessities, though some are starting to open their wallets. Overall sales were still weak, but many companies — including Gap Inc. and Costco Wholesale Corp. — posted results that topped expectations.
The Dow rose 63.94, or 0.7 percent, to 9,344.61. The Standard & Poor’s 500 rose 8.49, or 0.9 percent, to 1,003.24, while the Nasdaq composite rose 16.13, or 0.8 percent, to 1,983.20.
Three stocks rose for every one that fell on the New York Stock Exchange, where consolidated volume came to 4.7 billion shares, compared with 6 billion Wednesday.
Analysts say the dearth of market participants going in to the long Labor Day weekend has added to the market’s choppiness.
“I wouldn’t want to read too much into anything until we get into next week,” said Alan Brown, group chief investment officer at Schroders in London, referring to the light trading volume.
