Dow Rebounds to End Above 10,000
After a roller coaster day of trading, the Dow Jones Industrial Average managed to claw back above 10,000 at the end of trading on Friday. At one point during the day, the DJIA fell below 9,900. Investors appear worried about the strength of the economic recovery as well as debt trouble in Europe. The rebound that occurred late in day was most likely a result of bargain hunting by investors who were looking for good buys in sectors that have been under pressure over the past few days.
The Dow was up 10.05 points for the day closing at 10,012.23 – an increase of .1 percent. However, the Dow Jones Industrial Average was down nearly .5 percent for the week and with 4 straight weekly declines is down about 6 percent from its high this year. The NASDAQ finished up 15.69 to close at 2,141.12, an increase of about .75 percent. The S&P 500 also sported a gain for the day moving up 3.08 to close at 1,066.19.
Early in the morning, investors were anxious for the latest reading on jobs and unemployment. The government report showed a loss of 20,000 jobs, but also showed a drop in the unemployment rate to 9.7 percent. The drop in the unemployment rate could be attributed to an increase in discouraged job seekers who have given up looking for work. The employment report was not in line with economists expectations, who were expecting an increase of roughly 5,000 jobs along with an increase in the unemployment rate to 10.1 percent.
Investors are uncertain which direction the market will move in the coming weeks. Fear among investors, as measured by the CBOE volatility index or VIX, spiked today to 29 but eventually retreated and settled around 26. Many investors are expecting a roller coaster ride in the stock market over the coming weeks and are looking to earnings reports, retail sales and weekly jobless claims, as well as the consumer sentiment reading late next week.