WALL Street stocks edged higher yesterday, struggling against a weak bond market as trading turned cautious before Friday's key report on US employment and wage inflation during August.

Without any new economic data today to steer trading, the focus shifted to the monthly employment report, which has jolted the market several times since early March with revelations of unexpectedly strong growth in wage levels.

Friday's report could be the determining factor in whether the Federal Reserve will raise interest rates this month to keep inflation steady by slowing the US economy.

A substantial increase in employment costs - which constitute two thirds of a product's price - could quicken the pace of inflation.

Two weeks ago, the central bank left its lending rates unchanged amid indications that economic growth was slowing on its own.