US STOCKS-S&P hits record after ECB move, focus shifts to payrolls

jueves 5 de junio de 2014 10:06 GYT
 

* ECB cuts rates below zero to spur bank lending

* Rite Aid shares slide after outlook

* Sprint agrees to pay about $32 bln for T-Mobile US - source

* Indexes up: Dow 0.14 pct, S&P 0.1 pct, Nasdaq 0.23 pct (Updates to morning trading, adds comment)

By Rodrigo Campos

NEW YORK, June 5 (Reuters) - The S&P 500 hit an intraday record high for the seventh time in eight sessions on Thursday after the European Central Bank cut rates to record lows and outlined further accommodative monetary policy actions.

After mostly pricing in the ECB's move, the market is expected to focus on Friday's U.S. payrolls report for May as it looks for confirmation of a pick-up in hiring and economic activity in the second quarter.

The ECB cut rates including the deposit rate to -0.10 percent and will move further to persuade banks to lend. ECB head Mario Draghi said the bank's governing council will intensify preparations related to outright purchases of asset-backed securities.

Futures had drifted higher after the rate cut and added to gains on Draghi's remarks. The euro dropped against the U.S. dollar and yields on euro zone government debt fell.   Continuación...