REFILE-LIVE MARKETS-Wall Street indexes edge higher

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WALL STREET INDEXES EDGE HIGHER

Nasdaq .IXIC and the S&P 500 .SPX were gaining slightly while the Dow .DJI pulled itself back from the red as investors digested the latest signs of a softening U.S. labor market from Thursday's crop of economic releases while they waited for the closely watched non-farm payrolls report due out on Friday.

The Labor Department's Bureau of Labor Statistics said U.S. worker productivity grew faster than initially thought in the second quarter, curbing the rise in labor costs. Nonfarm productivity, measuring hourly output per worker, increased at a 3.3% annualized rate last quarter, revised up from the previously reported 2.4% increase and above economist expectations productivity growth would be upgraded to a 2.7% rate.

However, the number of Americans filing new applications for jobless benefits increased more than expected last week, consistent with softening labor market conditions. Initial claims for state unemployment benefits rose 8,000 to a seasonally adjusted 237,000 vs economist forecasts for 230,000.

Also, U.S. private payrolls increased less than expected in August with employment rising by 54,000 jobs last month after a slight upward revision to 106,000 for July, according to the ADP National Employment Report. Economists polled by Reuters had expected a 65,000 increase for August after the previously reported 104,000 gain in July.

In individual stocks Salesforce CRM.N shares fell more than 7% after it forecast third-quarter revenue below Wall Street estimates late on Wednesday, signaling lagging monetization for its highly-touted artificial intelligence agent platform as clients dial back spending due to macroeconomic uncertainty.

Among the S&P 500's major industry sectors, a handful were showing gains with consumer discretionary .SPLRCD leading the pack and healthcare .SPXHC and materials .SPLRCM lagging most.

Here is your early trading snapshot from 9:39 a.m ET/ 1339 GMT:

(Sinéad Carew)

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