Stock Market News for December 6, 2010

Investors brushed aside a disappointing jobs report that threatened to stall the December rally, sending stocks marginally higher and keeping hopes afloat that there’s still room for a further rally. Although the November jobs report disappointed on every count – unemployment rate unexpectedly shot up to 9.8% and employers added only 39,000 jobs to their rolls – stocks nevertheless managed to mark their best week in a month.
 
The rally, which began late afternoon after the report caused some selling in the early going, sent the Dow average within a striking distance of its 2010 high. The blue-chip average hit its year high on November 5.
 
The average closed at 11382.09, up 19.68 points, or 0.2%. The technology-focused Nasdaq Composite index advanced more than 12 points, or nearly 0.5%, to 2591.46, its highest level since January 2008. The broader S&P’s 500-stock index gained 3.18 points, or 0.26%, to 1224.71. On the New York Stock Exchange, about two stocks rose in price for everyone that fell. The market’s measure of volatility, the CBOE Vix dropped 7.1% to 18.01.
 
Action on the Dow average was almost evenly split, with 17 components closing the session in the green. The gains were led by Bank of America (NYSE:BAC - Analyst Report) which rose 1.5% on the day. Cisco (NASDAQ:CSCO - Analyst Report) led on the downside with a 0.8% drop.
 
The dollar fell 1.4% against a basket of currencies. A weaker dollar sent shares in material and energy companies higher. Shares in Newmont Mining Corp. (NYSE:NEM - Analyst Report) gained 3.1% while Schlumberger (NYSE:SLB - Analyst Report) advanced 2.5%.
 
The euro, meanwhile, advanced 1% against the dollar, closing at $1.3419, amid signs the ECB’s efforts to streamline European finances would help the currency recover some lost ground. Demand for Treasurys dropped, sending corresponding yields lower. The yield on the benchmark 10-year note inched up to 3.01% from 2.99% late Thursday.

All ten S&P500 industry sectors closed with gains of over 1%, led by basic material shares (+5.7%), oil and gas (+5%), financials (+4.5%), and industrials (+4.1%).

Asian shares closed mixed today, with the Shanghai Composite index in Mainland China closing up 0.5% on strength among energy shares. The Nikkei 225-stock average closed off 0.1%, the Hang Seng fell 0.4% and the S&P/ASX 200 closed off 0.1%.

Read the full analyst report on BAC

Read the full analyst report on CSCO

Read the full analyst report on NEM

Read the full analyst report on SLB