Markets mixed after jobless rates tops 10%

Dow sank 70 on the opening after the report about unemployment topping 10%, but has climbed back to up 6. However, only 9 Dow stocks gained. Decliners were ahead of advancers 3-2 & NAZ was even. Banks did not take the news well although they bounced off early lows. The Financial Index is down, remaining in the low end of its 2 month trading range.

Value 191.85

Change -1.47

% Change -0.8%

The Alerian MLP index fell 1½ to the 257s, staying near the 255 level it has gotten used to. The Dow Jones REIT Index fell 2 to the 161s. Junk bond funds were a little soft & the VIX, volatility index, dropped another .78 going below 25 (it had been near 32 one week ago). The yield on the 10-year Treasury bond fell 2 basis points to 3.52%.

Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- 2 weeks





Oil took the news about unemployment badly, but remains above the 65-75 range it had been in for so long. Gold is not showing any price after closing at 1088 yesterday.

CLZ09.NYM

Crude... Oil Dec 09

...77.50

... 2.12 .......(2.7%)

The unemployment rate rose above 10% for the first time since 1983, a worse jump than expected as employers continued to trim jobs from payrolls. This is a sign of the continued weakness in the labor market even though the economy grew in Q3 following the longest & deepest downturn since the Depression. The unemployment rate jumped to 10.2%, from 9.8% in Sep. There was a net loss of 190K jobs in Oct, an improvement from a revised 219K job loss number in the prior month & was the 22nd straight month of job losses. The increase in the unemployment rate was driven up by a large drop in the number of people who describe themselves as self-employed, as well as the number of teenagers included. While the number of layoffs is dropping, those laid off aren't finding work.

•U.S. Unemployment Rate Jumps to 10.2% as Payrolls Fall More Than Forecast


Unemployment rate - 1 year





The markets are taking the unemployment news pretty well, maybe because it had been semi-advertised all week. This is not really new news, but when it hits it strikes home. Auto sales rebounded modestly in Oct, after the cash for clunkers program ended, bringing a positive note to markets which are looking for assistance. Considering how ugly the unemployment news was, markets are adjusting as well as could be hoped for. However, the 10K ceiling for the Dow is becoming an issue, it is finding the ceiling a tough nut to crack.


Dow Jones Industrials --- 2 weeks