* August retail sales beat forecast; financials advance
* Investors cautious ahead of Friday's jobs data
* Dow up 0.7 pct; S&P 500 up 0.9 pct; Nasdaq up 0.8 pct
* For up-to-the-minute market news, click STXNEWS/US (Updates to close)
By Angela Moon
NEW YORK, Sept 3 (Reuters) - U.S. stocks rose on Thursday, snapping a four-day losing streak, after stronger-than-expected retail sales data eased concerns about the economy before Friday's important jobs data.
After sharp declines this week, the broad S&P 500 index finished above 1,000 as retailers' August sales were complemented by a survey showing improvement in the U.S. services sector. For details, see [ID:nN0391201].
Financials and retail stocks were among the day's leaders,
with Bank of America
"It's the belief the economy is in the recovery stage. What's rallying today are things associated with economic growth," said Owen Fitzpatrick, head of U.S. Equity Group, Deutsche Bank Private Wealth Management.
"Granted, we're due for a pause, but the reality is we are in an economic recovery."
The Dow Jones industrial average <.DJI> was up 63.94 points, or 0.69 percent, at 9,344.61. The Standard & Poor's 500 Index <.SPX> was up 8.49 points, or 0.85 percent, at 1,003.24. The Nasdaq Composite Index <.IXIC> was up 16.13 points, or 0.82 percent, at 1,983.20.
The S&P is up about 48 percent from its 12-year closing low on March 9.
The Labor Department is due to release its non-farm payrolls figures on Friday morning, which should shed light on the outlook for the economic recovery.
The payrolls report, accompanied by the U.S. unemployment rate for August, will come before a long Labor Day holiday weekend. U.S. financial markets will be closed on Monday.
Among retailers posting higher-than-expected sales in
August were Costco Wholesale Corp
Costco's shares, which were upgraded by JPMorgan, climbed 8.6 percent to $55, while Target gained 1.7 percent to $47.07. The S&P retail index <.RLX> rose 2.03 percent.
Gold prices climbed to their highest since late February, with spot gold
The PHLX Gold/Silver index <.XAU> gained 4.67 percent.
On the downside, credit-rating agency Moody's Corp
McGraw-Hill shares dropped 10.2 percent to $29.01 while Moody's shed 7.1 percent to $24.26.
In Friday's non-farm payrolls report, economists polled by Reuters forecast a loss of 225,000 jobs for August.
Volume was light on the New York Stock Exchange, with 1.16 billion shares changing hands, below last year's estimated daily average of 1.49 billion.
On the Nasdaq, about 1.86 billion shares traded, also below last year's daily average of 2.28 billion.
Advancing stocks outnumbered declining ones on the NYSE by a ratio of 23 to 6. On the Nasdaq, about 17 stocks rose for every eight that fell. (Reporting by Angela Moon, Editing by Kenneth Barry)