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Dow Closes Above 11,000 for the First Time Since May

by Dan Burrows Oct 8th 2010 4:05PM
Updated Oct 8th 2010 4:12PM
Stocks rose Friday and the Dow closed above 11,000 for the first time since before the Flash Crash of early May. September's dismal jobs reports raised traders' expectations for another round of monetary easing from the Federal Reserve next month.

The blue-chip Dow Jones Industrial Average ($INDU) rose 58 points, or 0.5%, to close at 11,006, it's highest close since May 3. The broader S&P 500 ($INX) added 7, or 0.6%, to 1,165. The tech-heavy Nasdaq Composite ($COMPX) gained 18 points, or 0.8%, to finish at 2,402.

The economy shed 95,000 jobs in September after factoring in the loss of 159,000 government jobs, including 77,000 once-in-a-decade U.S. Census worker jobs, the Labor Department said Friday. The unemployment rate remained unchanged at 9.6%, while the broader measure of both unemployment and underemployment, or U6, rose to 17.1% from 16.1%.

"This is no time to mince words," wrote David Rosenberg, chief economist at asset-manager Gluskin Sheff, in a note to clients. "The U.S. labour market is in horrible shape. The key was that excluding the Census worker layoffs, payrolls fell 18,000. Full stop. This marks the first time since December 2009 that the underlying level of nonfarm payrolls fell in a month."

Friday's grim jobs reports follows an unexpected drop in private payrolls and a surprise interest-rate cut by the Bank of Japan earlier in the week. Stocks enjoyed their best September since 1939 and are off to a strong fourth-quarter start in no small part on hopes that a weak economy will spur the Fed to a second round of so-called quantitative easing, in which it essentially prints money by buying up longer term Treasury debt. The Fed's rate-setting committee will issue its next policy announcement on Nov. 3 -- a day after the mid-term elections.

The yield on the benchmark 10-Year Treasury note, which moves opposite of price, was unchanged 2.38%. The specter of more monetary easing raised global inflation fears, pushing gold up $12.60 to $1,348 an ounce on the Comex division of the New York Stock Exchange (CME).

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blano54

Keep the Imagination under Control, Republicans. sometimes correcting, sometimes assisting it. For it is all-important for our happiness, and even sets the reason right. It can tyrannisise, and is not content with looking on, but influences and even often dominates life, causing it to be happy or burdensome according to the folly to which it leads. For it makes us either contented or discontented with ourselves. Before some it continually holds up the penalties of action, and becomes the mortifying lash of these Republican fools. To others it promises happiness and adventure with blissful delusion. It can do all this unless the most prudent self-control by Democrats, keeps it in subjection.

October 10 2010 at 12:43 PM Report abuse -1 rate up rate down Reply
blano54

Cultivate those Democrats, who can teach you. Let friendly intercourse be a school of knowledge, and culture be taught through conversation: thus you make your friends your teachers and mingle the pleasures of conversation with the advantages of instruction. Sensible persons thus enjoy alternating pleasures: they reap applause for what they say, and gain instruction from what they hear. We are always attracted to Democrats by our own interest.

October 10 2010 at 12:28 PM Report abuse -1 rate up rate down Reply
blano54

Democrats are wise men who arm themselves with tasteful and elegant erudition, a practical knowledge of what is going on not of a common kind but more like an expert. They possess a copious store of wise and witty sayings, and of noble deeds, and know how to employ them on fitting occasions. More is often taught by a jest than by the most serious teaching. Pat knowledge helps some more than the seven arts, be they ever so liberal.

October 10 2010 at 12:16 PM Report abuse -2 rate up rate down Reply
blano54

Democrats are wise men who arm themselves with tasteful and elegant erudition, a practical knowledge of what is going on not of a common kind but more like an expert. They possess a copious store of wise and witty sayings, and of noble deeds, and know how to employ them on fitting occasions. More is often taught by a jest than by the most serious teaching. Pat knowledge helps some more than the seven arts, be they ever so liberal.

October 10 2010 at 12:15 PM Report abuse -2 rate up rate down Reply
blano54

Democrats are wise men who arm themselves with tasteful and elegant erudition, a practical knowledge of what is going on not of a common kind but more like an expert. They possess a copious store of wise and witty sayings, and of noble deeds, and know how to employ them on fitting occasions. More is often taught by a jest than by the most serious teaching. Pat knowledge helps some more than the seven arts, be they ever so liberal.

October 10 2010 at 12:15 PM Report abuse -2 rate up rate down Reply
blano54

Democrats are wise men who arm themselves with tasteful and elegant erudition, a practical knowledge of what is going on not of a common kind but more like an expert. They possess a copious store of wise and witty sayings, and of noble deeds, and know how to employ them on fitting occasions. More is often taught by a jest than by the most serious teaching. Pat knowledge helps some more than the seven arts, be they ever so liberal.

October 10 2010 at 12:15 PM Report abuse -2 rate up rate down Reply
pete

Historically, the market goes down when it looks like democrats are going to be running Congress and up when it looks like Republicans will be the majority. This has proven to be true since 1929. Business and individual don't put their money in losing propositions, and any time democrats are in charge you can bet they will enact anti-business laws and regulations. No government has ever created a single job. Government creates openings in government that taxpayers must support. Businesses create jobs. The idea of those three letters -- J O B -- is to create something that will generate income. Government DOES NOT generate income, it takes from those who do. The more government, the more they take. The less government, the more the workers get to keep. One of the biggest continuing problems with government is one party creates 10,000 new positions to fill, and the other party can't seem to get rid of them. How the hell did we survive BEFORE those positions were made? If we got by without them before, we can get by without them again. Any government that looks at a tax cut as taking money away from government is so stupid. Government has ALWAYS taken money from those who EARN it. IT'S MY MONEY AND I NEED IT NOW!!!!!!!

October 10 2010 at 12:09 PM Report abuse +5 rate up rate down Reply
dsherline

This may seem trivial but it's becoming a regular thing. Once again whoever writes the links to these articles has shown their total lack of comprehension of our language. The link I clicked on to get to this article says, "Dow Crosses 11,000 for the First Time In May". I was going to comment about why did they wait 5 months for the story but when I opened it I found that whoever wrote the link doesn't understand that there's a difference between the words "since" and "in". Journalistic, editorial, and proof reading excellence at it's best. (NOT!)

October 10 2010 at 11:04 AM Report abuse +4 rate up rate down Reply
justthe2ofus

B F D ........The Country needs Jobs !

October 10 2010 at 10:14 AM Report abuse +4 rate up rate down Reply
Iselin007

What are these brokers trading from Greystone Sanitarium? Hmm?

October 10 2010 at 9:13 AM Report abuse +3 rate up rate down Reply