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In recent years, investors have withdrawn billions of dollars from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

    PHUK U !!!

    October 9, 2010 at 1:40 pm | Report abuse |
  2. Mehdi General Dr Bad

    im watching MUsharrafs Interview right now on indian tv.
    notice how that woman interupts, refuses ot answer any question, changes subject,
    keeps trying to mis lead .
    reporters are all useless.
    and Musharraf stil has My Support.

    October 9, 2010 at 2:07 pm | Report abuse |
  3. Ancient Texan

    The increase in the stock market is the result of optimism that the wild insane spending of the liberals will soon be replaced with fiscal responsibility and a return to stable government.

    October 9, 2010 at 2:16 pm | Report abuse |
  4. Mehdi General Dr Bad

    texas trash

    October 9, 2010 at 2:20 pm | Report abuse |
  5. Mehdi General Dr Bad

    welcome to mexico tex.

    October 9, 2010 at 2:20 pm | Report abuse |
  6. Mehdi General Dr Bad

    I have given youa nd your coward leaders choices every day.
    i have given you simple thinsg to do.
    yet of ocurse ebing the selfish arragant pile of trash you are you only did what you could make money on,.
    use for political gain.

    October 9, 2010 at 2:21 pm | Report abuse |
  7. Mehdi General Dr Bad

    as you fill up those suvs and trucks and moterhomes and speed boats ( all for free), and serve your arab masters and oil companies.
    many wonder what happend to me.
    well now YOU KNow.
    I sent 150 MIllion To Butte Falls to start hiring peopel .
    Instead they bought an amtrac train car.

    October 9, 2010 at 2:23 pm | Report abuse |
  8. Mehdi General Dr Bad

    on YOUR list for things to do?
    Add : Givng Marisa Miller What Ever The hIghest Possible Civlian Honor is.

    October 9, 2010 at 2:24 pm | Report abuse |
  9. Mehdi General Dr Bad

    now igy that war and go shop you selfish lazy instigating sk/.,anks.
    Go Enlist and Fight YOUR ownn Wars W/h/,o/r.e/s.

    October 9, 2010 at 2:26 pm | Report abuse |
  10. Mehdi General Dr Bad

    After a five-year hiatus, the Bakersfield Business Conference is back, this time featuring a lineup of Republican heavyweights that includes Sarah Palin, former Vice President Dick Cheney and Karl Rove.

    Read more: ***://www.fresnobee.com/2010/10/07/2109704/valley-event-features-big-gop.html#ixzz11tGV2LMm

    October 9, 2010 at 3:11 pm | Report abuse |
  11. mn

    Govt wont give jobs business makes jobs, quit whining

    October 9, 2010 at 8:58 pm | Report abuse |
  12. whitekong78

    Where was the fiscal responsibility when Bush signed the first $700 billion bail out to the banks. How many jobs did those banks hand out? When Obama signed that second stimulus for GM and more banks how many jobs did that create? The Republicans had their way before. It was only 2 years ago. Big business doesn't want to give you a job they want to give it to a cheap foreign child. Quit being political pawns.

    October 9, 2010 at 10:07 pm | Report abuse |
  13. phil

    Until the Federal Reserve is completely audited, there will never be a connection between US employment and the economy, aka the stock market. Imagine what a mess your personal finances would be if your bank account was never audited. That's the mess we see nationwide, no matter what President's administration is in power.

    October 9, 2010 at 10:24 pm | Report abuse |
  14. whitekong78

    The Fed is supposed to be OUR wealth. Yet the government uses it as their personal piggy bank. I'd be fine with an audit but what trusted independent agency would do it?

    October 9, 2010 at 10:47 pm | Report abuse |
  15. Mehdi General Dr Bad

    you = idiots.

    October 9, 2010 at 11:10 pm | Report abuse |
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