Stocks rise after encouraging employment reports

NEW YORK (AP) — Stocks edged higher in early trading today after a pair of reports provided more evidence that the U.S. is maintaining a slow but steady economic recovery.

The number of Americans seeking unemployment benefits dropped last week and is near the lowest level since June 2008, the Labor Department said. Weekly applications are just 1,000 above a five-year low reached last month.

Also, a survey from the payroll company ADP showed that American businesses added 176,000 jobs in August, fewer than in June and July but roughly in line with the monthly average for the year.

The encouraging reports came one day before the government releases its closely watched jobs report for August.

The Dow Jones industrial average rose 49 points, or 0.3 percent, to 14,975 in the first half-hour of trading. The Standard & Poor's 500 index rose five points, or 0.3 percent, to 1,658. The Nasdaq composite gained seven points, or 0.3 percent, to 3,658.