Stock Market News for November 8, 2010 - Market News

Stock advanced to their fresh two-year highs but the gains were modest as investors considered a strong jobs report in the backdrop of high unemployment and a wavering economic recovery. Also, it was the Dow average's best weekly gain in more than two months.

Although stocks searched for direction for much of the session Friday, they managed to end with slender gains as investors appeared convinced that a pill to cure the ills of the economy would be found. The Dow average closed at 11444.08, its highest close since the days preceding Lehman's collapse. The blue-chip average advanced 2.9% during the week and is up 9.7% year-to-date.

The broader S&P 500 led the major averages with a 3.6% gain during the week. On Friday, the 30-share index advanced 5 points, or 0.4%, to 1,226. The S&P is up 9.9% year-to-date. Gains on the S&P 500 were led by financial (1.8%) and basic material (0.7%) shares. The technology-focused Nasdaq Composite index edged up 0.1% to 2579, its highest close since January 2008.

On Friday, a Labor Department report showed the economy added 151,000 jobs in October, well above analysts' projections and the first gain since May. The unemployment rate, however, held steady at a stubbornly high 9.6%.

Today, Asian markets reflected the optimism that pushed their U.S. counterparts to two-year highs last week. In Tokyo, the Nikkei 225-stock average closed up 1.1%; in China, the Shanghai Composite index closed up 1% and Hong Kong's Hang Seng index edged up 0.4%. However, the Australian S&P/ASX finished off 0.5% as losses in financial stocks offset gains in commodity-related issues.

However, the recent rally in stocks has done no good to the dollar, which is currently trading at its lowest since December, 2009. The dollar traded 1% lower last week against a basket of foreign currencies. Crude prices jumped 6.7% on the week to $86.85 per barrel. Gold prices increased 3% to $1,397.70 an ounce, slowly inching toward the $1400 mark.

Amid mounting currency tensions, and the US' efforts to devalue the dollar in order to resurrect the domestic economy, the Group of 20 leaders, including President Obama, meet on Thursday to discuss, among other things, ways to ensure flow of capital to emerging markets and prevent asset-price bubbles. However, this morning's comments from President Obama that what is good for America is "good for the world as a whole" may not be music to the ears of many.

As the flow of earnings reports ebbs, some key companies come out with their numbers. Wednesday's calendar contains results from GM GM, Macy's M and Cisco CSCO. On Thursday results are due from Kohl's KSS, Disney DIS and Nvidia NVDA. Friday sees numbers from DR Horton DHI and JC Penney JCP.

 
CISCO SYSTEMS (CSCO): Free Stock Analysis Report
 
D R HORTON INC (DHI): Free Stock Analysis Report
 
DISNEY WALT (DIS): Free Stock Analysis Report
 
PENNEY (JC) INC (JCP): Free Stock Analysis Report
 
KOHLS CORP (KSS): Free Stock Analysis Report
 
MACYS INC (M): Free Stock Analysis Report
 
NVIDIA CORP (NVDA): Free Stock Analysis Report
 
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