Shocking Unemployment, Upgrades Galore, Stocks Vacillate

  • November 6, 2009
  • David Goodboy

A shockingly poor payroll figures indicating the most dismal unemployment rate since 1983 knocked stocks sharply lower at the open. However, a spate of company upgrades counteracted the bearish sentiment resulting in a vacillating, near break even trading day. The DJIA advanced +17.46 to 10023.42, the tech heavy Nasdaq closed up +7.12 to 2112.44 and the broad based S&P 500 added +2.67 to 1069.30.

General Electric
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GE |
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PowerRating): Was the recipient of two of today’s upgrades sending shares higher by 6.38% or 93 cents to $15.38.

XL Capital
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PowerRating): After Goldman Sachs upgraded the firm to “buy” shares added 3.86% or 64 cents to $17.23.

American International Group
(
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PowerRating): The struggling bailed out insurer’s shares plummeted 9.70% or $3.81 to $35.47 upon stating that its insurance business remained weak.

Amazon
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PowerRating): Climbed 4.57% or $5.51 to $126.12/share on a Sanford Bernstein upgrade to outperform.

Gold broke above the $1100.00 level for the first time intraday closing up $6.70 to $1096.00, oil fell $2.19 to $77.66 and the VIX index gave back 4.92% to 24.18.

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Market Snapshot

Dow

 +17.46 10023.42

NASDAQ

 +7.12 2112.44

S&P 500

 +2.67 1069.30

Economic
News

Construction Spending (Sep): Consensus: -0.2%, Prior: 0.8%

ISM Index (Oct): Consensus: 53.0, Prior: 52.6

Pending Home Sales (Sep): Consensus: -0.1%, Prior: 6.4%

Factory Orders (Sep): Consensus: 0.9%, Prior: -0.8%

Auto Sales (Oct): Consensus: NA, Prior: NA

Truck Sales (Oct): Consensus: NA, Prior: NA

Challenger Job Cuts (Oct): Consensus: NA, Prior: -30.2%

ADP Employment Report (Oct): Consensus: -190K, Prior: -254K

ISM Service (Oct): Consensus: 51.5, Prior: 50.9

Crude Inventories (10/30): Consensus: NA, Prior: 0.78M

FOMC Rate Decision (11/14): Consensus: 0.25%, Prior: 0.25%

Productivity-Prel (Q3): Consensus: 6.5%, Prior: 6.6%

Initial Claims (10/31): Consensus: 520K, Prior: 530K

Continuing Claims (10/24): Consensus: 5750K, Prior: 5797K

Nonfarm Payrolls (Oct): Consensus: -1175K, Prior: -263K

Unemployment Rate (Oct): Consensus: 9.9%, Prior: 9.8%

Average Workweek (Oct): Consensus: 33.1, Prior: 33.0

Hourly Earnings (Oct): Consensus: 0.1%, Prior: 0.1%

Wholesale Inventories (Sep): Consensus: -1.0%, Prior: -1.3%

Consumer Credit (Sep): Consensus: -$10.3B, Prior: -$12.0B