Stocks stage comeback as investors consider consequences of job report
December 3rd, 2010
09:57 PM ET

Stocks stage comeback as investors consider consequences of job report

A look at the day's business news headlines:

Stocks make a late-stage comeback 
 
Stocks turned higher during the last hour of trade Friday, as investors moved beyond the report that showed U.S. job growth in November was much slower than expected.

Instead, they focused on what favorable policy decisions might be triggered by the disappointing numbers.

The Dow Jones industrial average rose 20 points, or 0.2%, led by gains in Bank of America, as well as the materials sector, including DuPont, Alcoa and Caterpillar.

The S&P 500 added 3 points, or 0.3%. The tech-heavy Nasdaq drifted into positive territory earlier in the day, and finished up 12 points, or 0.5%.

Earlier in they day, stocks were lower as market's responded to the "surprisingly lousy jobs report," but even the negative reaction was  "muted," said Timothy Ghriskey, chief investment officer at Solaris Asset Management.

"The market is looking beyond the current employment conditions and is looking forward to prospects of improvement," Ghriskey said. "The weakness in the labor market does justify the Fed's decision to keep buying more securities and keep interest rates low, and it gives Congress ammunitions to extend the Bush tax cuts."

10-year yield edges over 3%
 
The yield on the benchmark 10-year Treasury note staged a mild retreat from its four-month high Friday, but recovered late in the day, closing just over 3%.

U.S. employers added 39,000 jobs to their payrolls in November, the Labor Department reported. That marks a major slowdown from October, when the economy added an upwardly revised 172,000 jobs.

November's numbers also fell short of the 150,000 gain that economists surveyed by CNNMoney were expecting. And the unemployment rate rose to 9.8%.

That's a whole lot of bad news for the economy, and following the report short-term Treasury prices increased while the price on 30-year bonds dropped.

While the yield on 10-year bonds did register a decline, the drop wasn't severe, a trend mirrored in the major stock indices, which dropped after the
report, but quickly recovered.

– CNNMoney.com reporters Charles Riley and Hibah Yousuf contributed to this report.

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Filed under: Economy • Jobs
soundoff (8 Responses)
  1. gerald

    The Stock Market knows that the Fix is in. They are getting exactly what they paid the Republican Party to get for them. A 700 billion dollar windfall that will be paid for by cutting social services to the rest of the American people.

    December 4, 2010 at 12:12 am | Report abuse |
    • coffeebean02

      Ditto.

      December 5, 2010 at 4:27 am | Report abuse |
  2. audit the fed...

    ...if you really want to know where the maaket's at.

    December 4, 2010 at 11:23 am | Report abuse |
  3. audit the fed...

    Market rather.

    December 4, 2010 at 12:28 pm | Report abuse |
  4. Jim Brieske

    gerald. You are a dumba/ss. President Obama has secretly bailed out numerous Wall Street companies to the tune of 3 trillion dollars.
    Go fuk yourself. Furthermore the stock market is the worst investment the average person could make. At the end of Obama's phonie Wall Street success creation during his only term, many will lose everything.
    jim

    December 4, 2010 at 4:56 pm | Report abuse |
  5. Cesar

    Wow, stocks are so interesting. And the 10 year yield, well, wow! But I really love ice cold milk with M&M candy. Who else enjoys this snack. Is it normal to combine the 2? Am I the only one in the whole world who does this, or are there other people?

    December 4, 2010 at 9:21 pm | Report abuse |
  6. david

    Come on guys be honest on this why you do not recpgnize that 2 trillons are a good reazon for the situation and act responsible solving this mess

    December 4, 2010 at 10:50 pm | Report abuse |
  7. coffeebean02

    Wow CNN, yesterday your headlines blared "Jobs coming back"...today a different take...Where do you get YOUR news from...?

    December 5, 2010 at 4:29 am | Report abuse |