Thin-volume pre-holiday trade and jobs data that suggested the pace
of job destruction is slowing combined to drive U.S. stocks higher in
today's regular session. Gains were moderate, although the tech-heavy
Nasdaq managed to jump 1.8% on the back of strength in big-cap names
following positive comments from Intel (INTC) on prospects for a
computer upgrade cycle for businesses.
Today's turn higher was the second consecutive day of gains as stocks recovered modestly from four straight days of declines.
Trade started only modestly higher early Friday morning after a
mixed report on job losses and unemployment. U.S. employers cut
fewer-than-expected jobs in August, but the unemployment rate rose to
9.7%, a 26-year high, after a decline in July.
The decline in jobs marked the 20th straight month for contraction
and served as a reminder that any job market recovery typically lags
signs of revival in other pockets of the economy.
Volume was light ahead of the Monday holiday in U.S. markets. In
addition, investors were waiting for news from a weekend meeting of
finance ministers from the Group of 20 leading economies. Attendees are
expected to talk about the timing for removing global stimulus
measures, with some disagreement anticipated.
Looking further out to next week, earnings news is limited. Among
companies reporting quarterly results are: Men's Wearhouse (
MW),
ShuffleMaster (
SHFL) and Zales (
ZLC) on Wednesday. Finisar (
FNSR), lulu
athletic (
LULU) and National Semiconductor (
NSM) are slated to report
financials on Thursday.
On the economic front, consumer credit data is due on Tuesday.
Wednesday will bring crude inventories data and the Fed's Beige Book.
Initial claims and the Trade balance are set for release on Thursday,
and import/export prices, Michigan sentiment, wholesale inventories and
the Treasury budget are due on Friday.
Crude settled up 0.1% at $68.02 per barrel.
DJIA up 96.66 (1.0%) to 9,441.27.
-S&P 500 up 13.16 (1.3%) to 1,016.40.
-Nasdaq up 35.58 (1.79%) to 2,018.78.
GLOBAL SENTIMENT
Hang Seng up 2.82%
Nikkei down 0.27%
FTSE up 1.1%
UPSIDE MOVERS
(+) FNM, FRE confirm they have regained compliance with NYSE listing standards.
(+) LTXC shares upgraded by Needham.
(+) HGSI index chosen as primary endpoint in trials.
(+) TONE will sell some assets to Great Western Bank
(+) ULTA Q2 results beat views.
(+) ARST earnings beat estimates by a penny.
DOWNSIDE
(-) ANF downgraded by Citigroup.
(-) HRB Q1 loss wider than views.
(-) BPI announces possible fines, corrective actions.
(-) ARRY phase 2 study doesn't meet endpoints.
