YAHOO [BRIEFING.COM]: In the
face of news that the unemployment rate climbed to a 25-year high, stocks
managed to muster a modest gain, which gave the market its fifth straight
advance.
Stocks started the session
moderately lower as participants made a push against stocks after learning that
nonfarm payrolls fell by 190,000 in October and that the official unemployment
rate climbed from 9.8% to 10.2%, the highest level since 1983. The consensus
had called for job losses of 175,000 and an unemployment rate of 9.9%.
The only other item on the
economic calendar was a wholesale report that indicated inventories fell 0.9%
in September. The consensus had predicted a 1.0% decline. That report had no
real impact on trade, though.
Despite a downward start as a
result of disappointing jobs data, stocks managed to make an upward turn in the
early going, then spent the rest of the session chopping sideways in listless
action.
Industrials managed to put
together a strong gain. The sector settled 1.2% higher amid strength in
industrial conglomerate General Electric (GE 15.33, +0.90),
which benefited from a pair of analyst upgrades.
Amazon.com (AMZN 126.20, +5.59) was also given an
upgrade, which helped it lead retailers to a 1.7% gain.
Financials lagged for the
entire session and finished with a 0.5% loss. The latest bout of selling
stemmed from a sharp drop by AIG (AIG 35.48, -3.80), even
though the company posted a positive earnings surprise. The insurer credited
improved and stabilized market performance. Still, weakness in AIG's shares
took multiline insurers to a 1.5% loss.
Recent bouts of weakness among
insurers have kept the financial sector from performing in-line with the
broader market, which logged a weekly gain of 3.2%. Financials finished this
week with a weekly gain of 1.8%.
Though it finished just 0.3%
higher this session, the materials sector made a weekly gain of 5.0%, which is
among the best weekly performances of any major sector. Gold stocks were key in
that move. They advanced nearly 13% this week. That was capped off by this
session's 3.8% advance as the yellow metal made its way to a new record high of
$1101.90 per ounce before pulling back a bit to settle with a 0.6% gain at
$1096.00 per ounce.
Gold's gains weren't enough to
offset general weakness among other commodities and prevent the CRB Commodity
Index from booking a 1.8% loss.
Advancing Sectors: Industrials (+1.2%), Consumer
Discretionary (+1.0%), Health Care (+0.4%), Materials (+0.3%), Telecom (+0.3%),
Consumer Staples (+0.3%), Tech (+0.1%)
Declining Sectors: Financials (-0.5%), Utilities (-0.3%), Energy
(-0.2%)DJ30 +17.46 NASDAQ +7.12 NQ100 +0.6% R2K -0.1% SP400 -0.2% SP500 +2.67
NASDAQ Adv/Vol/Dec 1233/1.84 bln/1417 NYSE Adv/Vol/Dec 1531/1.08 bln/1445