Friday, September 3, 2010

Markets advance after jobs report

The jobless report brought out buyers but markets are slipping after the first hour of trading. Dow is up 52 (& almost 100 off its early highs), advancers head of decliners 5-2 & NAZ gained 17. Banks advanced, the Financial Index is at a 2 week high.


Value 193.73 One-Year Chart for S&P 500 FINANCIALS INDEX (S5FINL:IND)
Change 2.65 (1.4%)

The Alerian MLP Index rose 1 to the 325s but is 2 below its earlier highs. The REIT index was up 1½ to the 213s. Junk bond funds gained & the € was up ½ a penny to $1.28½. Treasuries sank again, taking the yield on the 10 year Treasury bond up 8 basis points to 2.70%. Its chart shows an astounding 25 basis point gain in less than 2 weeks (when stock markets were rising).

Treasury Securities

U.S. 3-month
U.S. 2-year
U.S. 10-year

Alerian MLP Index --- 2 weeks

Dow Jones REIT Index --- 2 weeks

VIX --- 2 weeks

10-Year Treasury Yld Index --- 2 week

Oil fell after an index of U.S. non-manufacturing business declined more than projected, bolstering concern that the economic rebound will slow. Gold was lower responding to higher stock markets.

CLV10.NYM...Crude Oil Oct 10...74.25 ...Down 0.75

GCU10.CMX...Gold Sep 10...1,240.80 ...Down 10.70

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Employers hired more workers over the past 3 months than first thought, lifting hopes for the weak economy. But the unemployment rate rose in Aug for the first time in 4 months as more people entered the market looking for work. Companies added 67K new jobs last month & both Jul & Jun private-sector job figures were upwardly revised according to the Labor Dept. The economy lost 54K jobs as 114K temporary census positions came to an end. For the first time this year the manufacturing sector lost jobs, down 27K for the month with the auto industry accounted for 22K of those lost jobs (largely due to a shift in the timing of the industry's summer layoffs). State & local govs shed 10K positions & have had net jobs losses in every month but one this year. The jobless rate rose to 9.6% from 9.5% in Jul as more than a ½M Americans resumed their job searches in Aug. While these figures are slightly encouraging, they remain depressing for the millions looking for work.

Companies in U.S. Added 67,000 Jobs in August

Mariner Platform Blast May Extend Deep-Water Drilling Ban

Photo: Bloomberg

The blaze aboard the Mariner Energey (ME) oil platform yesterday added calls for maintaining the drilling ban imposed after the BP (BP) disaster. The fire came after an explosion, it was put out & all 13 crew were rescued unhurt. This will give regulators a new reason to slow permits even though the ME platform in 340 feet (104 meters) of water wasn’t covered by the moratorium. ME stock rebounded 51¢ & has returned to trading levels prior to yesterday's announcement.

Mariner Gulf Fire Sparks Calls to Keep Drilling Ban

Mariner Energey - 2 weeks

Markets are having a good week in what is supposed to be quiet time, prior to Labor Day. The gut reaction on the jobs report was overrated. Perhaps it shows that traders were relieved it wasn't as bad as they expected. High unemployment rates are not going away anytime soon & will be a major issue in the coming elections.

Dow Jones Industrials --- 2 weeks

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