Friday, August 7, 2009
Market Reflections 8/7/2009
A better-than-expected July jobs report, showing a slowdown in job losses and a dip in the unemployment rate, gave a lift to the bulls, pulling money off the sidelines and into the stock market where the S&P 500 gained 1.3 percent to 1,010. Gains or not, money managers continue to complain that clients remain tight fisted. While money moved into stocks it moved out of the safety of Treasuries where yields were up 10 basis points across most coupons. The 10-year yield ended at 3.85 percent. Strong signs for the U.S. economy did not make for a movement out of the safety of the dollar which instead rallied on expectations of stronger asset yields. The dollar index jumped 1.2 percent to 78.94. Commodities showed little reaction with oil slightly lower at $71 and gold also slightly lower at $957.