October 8th, 2010
07:31 PM ET

Jobs report woeful; Dow soars

A look at the day's business news headlines:

Jobs stink, Dow surges. What's up?

Stocks rallied Friday, with the Dow crossing 11,000 and closing above the key level for the first time in five months.

The buying frenzy came after a sharp drop in the overall jobs figures in
September boosted the chances of the Fed stepping in to stimulate the economy.

"The jobs number was terrible, but it clinches the deal for another round of stimulus from the Fed on Nov. 3, and that's why the markets are screaming today," said Phil Orlando, chief equity market strategist at Federated Investors.

The Dow Jones industrial average rose as much as 84 points, or 0.5%, to a fresh-five month intraday high of 11,032. It eased from that level in the afternoon, but still finished with a 58-point gain, led by Alcoa and
Caterpillar.

The Dow closed at 11,006, its highest level since May 3.
The last time the blue chip index traded above that level was just days
before the"flash crash" that sent the Dow tumbling nearly 1,000 points in one day.

Corporate bond market contrasts with declining yields of Treasurys

Corporate bonds have been on a tear since the market collapse of 2008, as investors sought refuge from a tumultuous stock market.

The corporate bond market occupies that nice comfortable middle ground between the still volatile stock market and government debt offerings that offer ultra-low yields.

In recent years, investors have withdrawn billions of dollars from
equities markets in search of a safe haven, only to find themselves stuck with the declining yields offered by Treasurys. Prices and yields move in opposite direction.

U.S. Treasurys currently have yields ranging from less than half a
percent for two-year notes to just over 3% for 30-year longbonds. Compare that with corporate bonds, which offer yields average around 4% for investment grade debt, and 8% for riskier high yield bonds.

"With the improved environment we've seen issuances almost explode," said Kim Rupert, the managing director if fixed income at Action Economics. "Both supply and demand [for corporate bonds] have picked up over the last year."

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

 

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Filed under: Economy
soundoff (47 Responses)
  1. Mehdi General Dr Bad

    Oh Boy More " Free Goverment Money".

    October 8, 2010 at 8:54 pm | Report abuse |
  2. :::::::::::::::::::: www.DomainersGate.com ::::::::::::::::::::

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    NOTHING can replace the Shuttle fleet! ... surely NOT the "commercial space"!
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    http://www.ghostnasa.com/posts2/061comparison.html
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    October 8, 2010 at 9:45 pm | Report abuse |
  3. :::::::::::::::::::: www.DomainersGate.com ::::::::::::::::::::

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    over 23,000 jobs will be lost after the Shuttle retirement
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    October 8, 2010 at 9:46 pm | Report abuse |
  4. Mehdi General Dr Bad

    The Rich Get Richer as they keep the Poor Stupid.
    Have another beer, take another pill, Iggy That ugly ol war and go shop.

    October 8, 2010 at 11:11 pm | Report abuse |
  5. Mehdi General Dr Bad

    A Lot of YOu wonder why I went public Now.
    No,Im not all over t.v but yes for the last few months i have ben posting evrything all over the web on many sites and blogs.
    All MY real info , MY ex wives etc info.
    Why now?
    By Gods Grace My oldest Grandson Turned 18 this year.
    MY ex iwves and children have no idea where i been or what i have ben doing the last 40 years.
    They just know i leave a lot and i am always gone.
    They are old enough now to know the truth and america is done hiding behind my wives- children , my Troops , My M.I.A army nurse while they play politics and steal from MY Children.
    NO, YOU wil set therew with that head stuffed in your ass for ever and stay stupid.
    from c.n.n to obam clinton and bush they THINK They wil hide behind thier corrupit courts and useless cops.
    They Made The Mistake of Throwing Me IN Jail twice last year. Again.
    Even now That A.P.B still Stands.
    oh but you all sedn some oone ELSE To Come Kill or arrest me.
    and how many of YOU have i now killed?
    IM JUst warming on on fuking america and thier trash.
    all about thier fuking elections as they fill thier greedy pockets while americans get drunk and party.

    October 9, 2010 at 12:02 am | Report abuse |
  6. Mehdi General Dr Bad

    No Matter what happens to me now, The Truth Will Come out.
    And You are not going to find me so funny any longer.
    Jew and Arab Fuking puppets.
    And i see no reason to talk to any of you any more for any reason.
    Rot In Hell.

    October 9, 2010 at 12:04 am | Report abuse |
  7. Don

    Apparrently the richest of the wealthy 1% have gotten the written memo to gain as many benifits as they can while their employees scramble for less and less. When is this nonsense going to end? We the hard working folks have been DILBERTED!

    October 9, 2010 at 9:38 am | Report abuse |
  8. whitekong78

    Jobs leaving yet the stock market is going up? Who does the stock market affect? Those with the most money of course. They lay off people to improve their profit margins which in turn raises the value of their stock. Revolt NOW America!

    October 9, 2010 at 11:03 am | Report abuse |
  9. whitekong78

    We don't want your magical stimulus money Mr.Obama. We want jobs. Your impotence in power is showing clearly to all of us.

    October 9, 2010 at 11:05 am | Report abuse |
  10. Mehdi General Dr Bad

    more blocked messages.

    October 9, 2010 at 12:37 pm | Report abuse |
  11. Mehdi General Dr Bad

    yes as fast as i post you delete my messages.

    October 9, 2010 at 12:38 pm | Report abuse |
  12. Mehdi General Dr Bad

    you see words are waste of time.
    slit thier fuking throats.

    October 9, 2010 at 12:40 pm | Report abuse |
  13. Mehdi General Dr Bad

    YOU wars are not mY wars, YOur c.u.n.tree is not mY Country.
    YOUR Troops are nOT MY TRoops.
    YOUR problems are not MY probelms.
    but you kep onintercptinga nd blocking words.

    October 9, 2010 at 12:41 pm | Report abuse |
  14. Mehdi General Dr Bad

    se there an dbathe in the blood of your own Troops and Own children bray how great you are and how clever.

    October 9, 2010 at 12:41 pm | Report abuse |
  15. Mehdi General Dr Bad

    NO Talks. NO Truces. NO Deals NO cease Fires.
    i wipe my hands of you and your wars and your country and your troops.
    NOT MY PROBLEM.
    Die you godless cowardly baby murdering filth.

    October 9, 2010 at 12:42 pm | Report abuse |
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