* U.S. stocks higher, European stocks extend losses
* Weak earnings, Deutsche loss, German retail sales weigh
* Euro fall tempered by dollar under pressure
NEW YORK, Jan 31 U.S. stocks rose and Treasuries
fell on Thursday but moves were limited as economic data
continued to paint a mixed picture of the economy ahead of a key
U.S. jobs report on Friday.
A measure of business activity in the U.S. Midwest rose in
January to its strongest since April, but an earlier report
indicated a rise in U.S. jobless claims in the latest week.
Data on Wednesday showed U.S. GDP slipped 0.1 percent where
a rise had been expected, although the Federal Reserve indicated
the pullback was likely to be brief and repeated its promise to
continue supporting the economy.
But the larger focus is U.S. payrolls data on Friday for a
take on the health of the world's biggest economy.
"Unfortunately it's still a mixed picture, it appears we are
just getting a lot of conflicting data right now," said Jack
Ablin, chief investment officer at BMO Private Bank in Chicago.
"There is certainly a lot of information coming out this week -
a lot of economic data, a lot of earnings and of course we have
the employment number looming Friday, so with 1,500 (in the S&P
stock index) right here, my guess is there is just not enough
conviction to push us substantially higher yet."
The Dow Jones industrial average was up 19.58 points,
or 0.14 percent, at 13,930.00. The Standard & Poor's 500 Index
was up 0.81 points, or 0.05 percent, at 1,502.77. The
Nasdaq Composite Index was up 8.46 points, or 0.27
percent, at 3,150.76.
A drop in German retail sales, stagnant French consumer
spending and a huge quarterly loss at Deutsche Bank dashed hopes
of a quick rebound for European shares, which had their biggest
daily fall of the year on Wednesday after surging 3.7 percent
The pan-European FTSEurofirst 300 was down 0.1
percent, and the MSCI world index was up 0.1
Caution after the German data also put the euro under
pressure and halted its recent rise against the dollar although
the single currency was headed for its best month in 15 months
against the dollar on Thursday, as signs of recovery in the euro
zone's economy and its banks set the common currency on a
Renewed selling left it at $1.3572, short of Wednesday's
14-month high. The Federal Reserve's promise of continued
support was widely expected to mitigate the fall, however, by
keeping downward pressure on the dollar.
Risky assets such as equities, commodities, and high-yield
debt have risen sharply in the past six months as growth in
emerging economies such as China's has picked up and fears of a
collapse of the euro have been calmed by the European Central
Spot gold drifted down to $1,666.30 an ounce, having
hit a one-week high on Wednesday, while oil prices
inched down 18 cents to just under $115 per barrel, still well
above their starting price this year of $110 a barrel.
U.S. light sweet crude oil fell 66 cents, or 0.67
percent, to $97.28 per barrel.