Friday, December 4, 2009

FusionIQ MarketWrap for 12/4/09-Stocks end volatile day slightly higher...

Stocks rallied at the start of trading today after the Labor Department said the U.S. lost 11,000 jobs last month, the fewest since the recession began and less than one-tenth the 125,000 median estimate in a survey of economists. The unemployment rate dropped to 10 percent.  The S&P 500 swung between gains and losses all day as investors weighed concern the Fed will boost interest rates from near zero to curb speculation. Chairman Ben S. Bernanke said yesterday he doesn’t rule out using monetary policy to pop asset bubbles after officials in emerging markets suggested the central bank’s record-low federal funds rate is pushing prices too high.   For the day the Dow Jones industrials were up 22 at 10,388. The Standard & Poor's 500 index was up 6 at 1,106. The NASDAQ composite index was up 21 at 2,194.   Two stocks rose for every one that fell on the New York Stock Exchange. Volume totaled 1.5 billion compared with 1.1 billion Thursday.  The biggest rally in the U.S. dollar since January snuffed out an advance in commodities and limited the gains in equities due to the unexpected drop in the unemployment rate which started speculation that the Federal Reserve will lift borrowing costs. Gold slid the most in a year and Treasuries tumbled.

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