Stock Market Update: Dow Reclaims 11,000
Dow +55.97 at 11004.55, Nasdaq +11.95 at 2395.62, S&P +5.92 at 1163.98
[] After a back-and-forth start to the day, the stock market has extended to session highs, with the Dow Jones Industrial Average reclaiming the 11,000 level for the first time since May 4, before the “flash crash.” Today’s modest +0.5% gain follows the pre-market employment data, which was headlined by a -95K Nonfarm Payrolls reading. This was well below the consensus expectation for no net change. Although the headline numbers came in below the consensus expectations, after digging into the data it turns out that the negative headline number was driven by government layoffs, making the report more benign than it may appear at first glance. This interpretation, combined with the idea that weak economic data strengthens the argument for additional quantitative easing (the purchase of financial assets with dollars), has helped stocks find a bid off their initial reaction lows. The dollar, which has recently been under pressure on the idea that further quantitative easing measures will be taken, is marginally lower today with the Dollar Index currently -0.09 at 77.31.
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