Updated from 9:45 a.m. EST
U.S. stocks worked their way higher at the open Friday, even after the release of the worst monthly unemployment reading in more than a decade.
The Dow Jones Industrial Average rose 195 points at 8891, and the
added 20 points to 925. The
jumped 35 points to 1643.
Economic data releases continued to point to a dismal downturn. The Bureau of Labor Statistics reported that October nonfarm payrolls declined by 240,000, worse than analysts' projections of 200,000. The September job-loss figure was revised to 284,000 from 159,000. The unemployment rate came in at 6.5%, its highest reading since 1994 and above economists' estimates of 6.3%.
"We knew it was coming," said Neil Hennessy, fund manager at Hennessy Funds. "When your stock is down 50-60%, why not clean your company out? Clean everything off the books, simply because you might as well go into 2009 and 2010 lean.
"Everything gets blown out of proportion for short-term consideration," said Hennessy. He said that U.S. employees are highly resilient. "They're not going to stay unemployed. ... If you take what we've already gone through, which is the auto, housing and finance -- those three sectors got absolutely annihilated -- and we're still here."
"The fourth quarter is shaping up to be one of the weakest in decades," wrote Chris Low, chief economist at FTN Financial, in an email. "The Fed will almost certainly cut rates to less than 1%, but there's not much more they can do there." He said the numbers bolster the argument for fiscal stimulus and that the Treasury may once again intervene in the financial system.
The Census Bureau's wholesale inventories report for September is due out a bit later, as is the
look at consumer credit.
In terms of corporate news, quarterly earnings statements were still occupying investor attention.
reported decreased earnings, in part because of a charge related to debt owed by bankrupt brokerage
. Fellow entertainment firm
beat Wall Street estimates on both the top and bottom lines, and offered in-line guidance for its fiscal 2008 revenue.
Construction management firm
reported a large rise in third-quarter income.
Meanwhile, communication equipment manufacturer
announced falling profit and lowered its forward outlook.
said it lost $129 million for the third quarter and burned $7.7 million in cash and said it would cut additional jobs.
is also slated to report.
Staying with autos,
reported that GM, Ford and Chrysler are looking to get $50 billion in loans from the government to cover health care spending and general liquidity. Such aid would come on top of $25 billion loan passed by Congress in September.
swung to a third-quarter loss but announced it renegotiated terms of a credit facility and cut its debt levels.
CEO Steve Ballmer said that his company doesn't intend to work out a merger deal with
, according to a report by
Elsewhere on the merger front,
announced they were discussing a potential deal.
, JPMorgan cut 2009 earnings estimates on
. The reduction in the Goldman estimates was tied to private-equity losses.
In commodities, crude oil was gaining $1.35 to $62.12 a barrel. Gold was adding $3.10 to $735.30 an ounce.
Longer-dated U.S. Treasury securities were falling in price. The 10-year note was down 24/32, yielding 3.78%, and the 30-year was lower by 1-6/32 to yield 4.27%. The dollar was higher vs. the yen, but softening against the euro and pound.
Credit markets continued their loosening streak. Three-month dollar Libor dropped 10 basis points to 2.29%, a four-year low, indicating that interest-rate cuts from central banks around the world were having an impact. Overnight Libor remained level at 0.33%.
Abroad, European indices gaining ground, as the FTSE in London and the Dax in Frankfurt traded higher. Asian exchanges were mixed, as Japan's Nikkei ended down and Hong Kong's Hang Seng closed with gains.