A rise in jobless claims didn't scare accounts away from the stock market where bargain hunting, following three days of selling, pushed the S&P 500 up 1% to 893. Auto sector layoffs, likely centered at Chrysler, drove initial jobless claims up 32,000 to 637,000 while continuing claims continue to mount, now at 6.56 million. Remember, the S&P move to 930 last week was based on expectations that job contraction was easing. Producer prices showed wide gains, easing questions over deflation but raising new ones on inflation.
Given gains in stocks, demand softened for the safety of the dollar which fell about 3/4 of a cent to $1.3640 against the euro. Oil rose about 50 cents to $58.50 while gold held firm at $925. Treasury yields were little changed with the 2-year ending at 0.84 percent
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