4:30PM U.S. advance on Jobs data, Europe on M&A talk and emerging markets recovered in Asia and Latin America.

S&P - 1281.58 up 9.35
DOW -11,076.34 up 104.06
NASDAQ - 2262.04 up 12.33


- Jobs data sparked a rally in the stock averages but bond yields rise.
- Yield on 10-year bond rose to 4.75%, financial stocks rise in the U.S.
- European markets closed up led by Switzerland, German and France.
- Russia closed 9% lower for the week but India, Brazil and Mexico recover.
- Oil and gold dropped on profit taking.


Broader averages and tech stocks rose on solid job report and fall in unemployment rate and on oil price below $60. The stable rise in employment sparked hopes that economy will grow and inflation will be under check. Stocks in the financial, home building and specialty retail advanced on the job report. AIG, Citigroup and American Express gained more than 1% and supported the rally in Dow stocks. Oil and other varieties of crude dropped ahead of the weekend as most traders selected to take profit on no news. Bond market looked at the same job report and came to a different conclusion. The yield on 10-year bond rose to 4.75%, rising eight ticks on the worries that hourly wages were up highest when measured annual rise in wages. Despite fall in most metal prices the sector jumped higher. Nucor raised earnings guidance and jumped up 5% at close. Similar rise in averages were experienced in European stocks.

Banking stocks rose in Europe on takeover rumors as reported in a French newspaper. Banks in France, Germany and Italy rose on speculation. Societe Generale rose 4.8% and Capitalia added 2.4% on speculation that they could be gobbled up in recent merger sweep. Deutsche Bank, Credit Suisse and Barclays added more than 2%. Seven of the eight markets in Europe advanced led by Switzerland, Germany and France with gains of 1.4%, 1.27% and 1.23%. Norway declined 0.29% as oil price declined in Europe.

In Asian emerging markets India and South Korea led advancers. Mumbai rose 1.81% and Korea advanced 0.68%. India’s SENSEX advanced to the all-time high of 10,765 led by software exporters. Infosys rose 2.5%, Satyam Computer jumped 3.7% and Tata Consultancy advanced 2.5%. Banking and tech stocks had not participated in the recent rally in Mumbai but managed to lead the session. ICICI Bank, India’s largest private bank, climbed up 1.8%, State Bank of India rose 1.6% and HDFC Bank rose 3.4%. Bajaj Auto and Tata Motors rose 3.2% and 2.4% respectively.

Emerging markets in Latin America advanced after five days of weak trading. Brazil added 1.5% and Mexico gained 0.6%. Brazil’s central bank lowered interest rate by 0.75% on Wednesday, one of the highest rates in the world, however since September 2005 the bank has cut the rate six times. Decline of 1.3% in industrial production in January did not affect the market’s advance during the session. Russia’s main index dropped another 0.74% and for the week declined more than 9%. Russian stocks in the metals and mining and energy sector took the biggest hit for the week.

Energy prices headed lower as volatility in the crude oil prices continued. Crude oil closed lower 51 cents to $59.96, gasoline and heating oil closed lower 3 cents to $1.688 and $1.684 per gallon respectively. Natural gas closed 4 cents higher to $6.64 mBTU. In metals market, gold and silver traded lower but copper closed higher. Gold dropped $5.70 per ounce to $541.30 and silver closed down 1 cent to $9.96 per ounce but copper closed up 1.45 cent to $2.21 per pound.


2:30PM Retailers report higher earnings but stocks sell-off.
Athletic apparel retailer Quiksilver Inc. reported earnings of 15 cents vs. 12 cents a year ago but reduced its outlook for the second-quarter to 6 cents from 17 cents of previous forecast. The stock lost 5%. Univision Communications Inc. shares rose 4% as reports emerged that a consortium formed of Mexican Grupo Televisa and Venezuela’s Venevision along with private equity firms are likely to bid for the company. Big Five Sporting Goods lost 6% on the Q4 earnings report of 39cents vs. 42 cents a year ago. Total sales for the quarter were $218.9 million and same-store sales grew 1.5%. Software developer Skillsoft traded down 8% on lower revenue of 3% and profit of 6 cents vs. loss of 27 cents a year ago. Universal Display Corp (PANL) lost 10% on wider loss of 17 cents vs. 11 cents a year ago.

12:30PM European markets gained ground.
European stocks dropped at mid-day dealings but later recovered to close sharply higher, boosted by stronger-than-expected U.S. non-farm payrolls data and continuous banking sector takeover speculations, including Societe Generale, up 4.8% and Deutsche Bank, up 3.4%. The German DAX 30 surged 1.3%, the French CAC 40 climbed 1.2%, and London FTSE 100 rose 0.9%.

Crude oil prices hovered round $60 on worries that further militant attacks will disrupt Nigeria’s oil production. Light sweet crude April delivery gained fell 25 cents to $60.67 a barrel. Gasoline lost 1 cent to $1.7175. Heating oil was also down a cent to $1.7065. Natural gas rose marginally to $6.605. London Brent rose 24 cents to $61.30. European gold lost ground. In London gold fell to $540.80 bid per troy ounce, down from $547.30. In Zurich the precious metal traded at $539.30, down from $546.10. In Hong Kong gold dropped 70 cents to $546.10. Silver closed at $9.92 per troy ounce, up from $9.90. The U.S. dollar advanced against other major currencies. The euro traded at $1.1877, down from $1.1905. The dollar bought 119.07 yen, up from 118.18. The British pound was quoted at $1.7241, down from $1.7354.


11:30AM Major averages came off intraday highs.
Market averages were supported by strong buying interest, though they lost some of the earlier gains. The Dow Jones came off intraday highs, trading up 82 points. The Nasdaq was also trading below the highest morning session levels, currently posting an advance of 11 points. All ten sectors continue to post gains with the semiconductor sector providing a strong support to the Nasdaq which managed to from recent losses. Computer hardware was another strong arm of tech support. Bond prices headed lower, with the yield on the 10-year Treasury note rising to 4.77% from 4.72% late Thursday.

American International Group (AIG) stood out as the most conspicuous gainer among Dow components. The stock rose 1.6%, climbing to over a 2-week high. General Electric (GE) was another strong performer, rising 1.2%, over a 2-week high. Procter & Gamble (PG) gained 1.1%, setting a new 52-week high. Of all 30 Dow components only Pfizer (PFE) traded in the negative, falling by 0.1%.


10:30AM U.S. Stocks managed to build on upward momentum.
Friday session started mixed with the blue chips supporting the Dow but the Nasdaq moving to the downside on weak tech and biotech stocks. Recently averages managed to build on upward momentum. The Nasdaq pushed upward to enter the positive territory, gaining 0.2%. Meanwhile, the Dow reached its intraday high, rising 0.5%. On the economic news front, The U.S. Commerce Department revealed that January inventories at wholesalers edged up by 0.1% to a seasonally-adjusted level of $362.81 billion, slightly higher than economists had predicted.

The bank sector rose 0.7%. AIG (AIG) boosted both the sector and the Dow. Insurance, brokers, REITs, and banks outperformed. Littelfuse (LFUS), circuit protection products supplier, was one of the most conspicuous gainers in the early going, up 15% after it reported higher Q1 guidance. Allion Healthcare (ALLI), specialty pharmacy services provider, stood out as one of the worst performers. The company’s shares dropped 18% after it said it will restate its Q2 results.