Friends
Today’s non-farm payroll number came in much better than expected with 254,000 new jobs created in September vs. the 150,000 expected by analysts. We also saw a sizable upward revision in the August number. Stocks liked the news, bonds did not. Bond yields rose as fears that the Fed might be more subdued in their rate reduction schedule (remember yields up means prices down for bonds). Stocks on the other hand seemed to welcome the news that the economy sure looks pretty darn good given the fears of recession that we have seen for more than a year now.
By the close the Dow Jones Industrial Average was up 341 points to finish the day at 42,352. The S&P 500 was up 51 points to close at 5,750. The Nasdaq Composite Index was up 219 points to close at 18,137. Gold was down $10 to trade at $2,669 per ounce, while oil was up $.77 to trade at $74.48 per barrel WTI.
The bulls are firmly entrenched on the high ground. The bears will have to regroup and come up with a new battle plan. It looked like the new quarter might get off to a rocky start, but today’s jobs number seemed to trump worries about rising gas prices and strife in the Middle East. We’ll let you know how things go next week. Stay tuned.
Have a great weekend everyone.
