Stocks rise on a mixed unemployment report

Buyers bid up markets after losses were less bad than feared. Dow gained 95, advancers 3-1 ahead of decliners & NAZ was up 32. Banks rebounded, bringing the Financial Index to within 8 for their 2009 high set last week.

S&P 500 FINANCIALS INDEX

Value 190.30

Change 0.90

% Change 0.5%

S5FINL:IND





The high yields sectors joined in the rally. The Alerian MLP index was up 2½ to the 237s (although it has been in the mid 230s for a couple of weeks) & the Dow Jones REIT Index gained 1. Junk bond funds rose. But Treasuries sold off badly, the yield on the 10-year Treasury bond shot up 11 basis points to 3.44%. Oil was flat, just under 68 & oil was off 1 to an elevated 995.


Alerian MLP Index --- 6 months




Dow Jones REIT Index --- 6 months





Ford (F) had the credit rating on its debt increased to Caa1 from Caa3 by Moody's. The 7.8% bonds of Ford Motor Credit rose $10 to $948 for a $1000 bond, the highest it's been in 2 years. This yield is only about 200 basis points above the yields on investment grade debt. Ford had been managing its business better than GM & benefited from GM's bankruptcy. The stock lost 8¢.

•Ford Motor Credit Notes Rise to 23-Month High After Parent's Ratings Boost


Ford --- 1 year




There has been very little good news on the dividend front, but here is one. Verizon (VZ), Dow stock, raised the div 3% to 1.90. Their yield is over 6%, an attractive yield for a quality stock. VZ gained 35¢.

•Verizon hikes dividend 3 percent to 47.5 cents
AP

Verizon --- 1 year





Stocks ended the week with a bang. Unemployment rose to its highest level in 26 years, but that did not deter buyers. After a bad day for Dow on Mon, losses for the week were reduced to only 60. The S&P 500 is back over 1K & NAZ is above 2K, each has been straddling their respective resistance levels for the last month.
9496 close on Aug 28


Dow Jones Industrials --- 6 months




S&P 500 --- 1 month




NASDAQ --- 1 month

Happy Labor Day!!