US stock indexes rose sharply on solid corporate earnings reports. McDonald's and Chipotle stocks jumped.
The September unemployment rates by state was released today with oil exploration rich North Dakota leading the way again at a measly 3.5%.
The dollar slipped to a record low against the rising Japanese yen today.
Here are the top financial stories of the day:
1) Stocks rise sharply on solid corporate earnings-From the AP
A broad rally swept through the stock market Friday after McDonald's and several other large companies reported solid earnings. The Standard & Poor's 500 index closed higher for the third straight week, its best run since February, as hope builds that a weekend meeting will bring European leaders closer to easing the region's debt troubles.
The Dow Jones industrial average jumped 267.01 points, or 2.3 percent, to 11,808.79. The Dow is now up 2 percent from where it started 2011. Before Friday's surge, it was down for the year. The Dow has risen for four weeks straight, the first time that has happened since January.
The combination of stronger earnings, better economic news and a sense that European officials were taking the debt crisis more seriously have helped lift stocks, said Phil Orlando, chief equity market strategist at Federated Investors. "It seems like there's a greater sense of urgency to deal with Greece and the sovereign debt trouble in Europe," Orlando said.
McDonald's Corp., Chipotle Mexican Grill Inc. and Harman International Industries Inc. were among the companies that beat analysts' expectations. The quarterly earnings season is off to a strong start. Of the 118 companies that reported earnings so far, 75 percent have beaten estimates, according to financial data provider FactSet.
The encouraging corporate news was in line with recent signs that the U.S. economy strengthened in September after a very weak summer. On Friday the government said unemployment fell last month in half of U.S. states and was unchanged in 11. That's much better than in August, when unemployment rose in 26 states.
Markets have been moving sharply in recent weeks, mainly in reaction to the latest headlines out of Europe on the debt crisis. The Dow had a bigger jump on Oct. 10, 330 points, after the leaders of France and Germany pledged to have a comprehensive solution to the debt crisis in place by the end of the month. The Dow has now gained 10.8 percent since Oct. 3, when it sank to its lowest point of the year.
The S&P 500 gained 22.86 points, or 1.9 percent, to 1,238.25. Rising stocks in the S&P outpaced falling ones by a margin of 20 to 1: only 23 companies traded lower.
The Nasdaq composite index gained 38.84, or 1.5 percent, to 2,637.
European markets closed sharply higher as investors hoped that European leaders will agree on a package of measures to address the region's debt crisis in time for a summit scheduled for Wednesday. Germany's DAX index rose 3.5 percent. France's CAC 40 and Italy's FTSE MIB rose 2.8 percent.
Traders sold ultra-safe U.S. Treasury debt as riskier assets rose. The yield on the 10-year Treasury note rose to 2.22 percent from 2.18 percent late Thursday. Bond yields rise as demand for them falls and their prices decline.
Stocks were lifted earlier this week by better news about the U.S. economy. A measure of manufacturing in the Philadelphia region grew in October after contracting for two straight months.
The number of people claiming unemployment benefits declined last week, and inflation remains low.
Among the companies reporting earnings late Thursday or early Friday:
-- McDonald's Corp. rose 3.7 percent after reporting a 9 percent increase in income. The results beat analysts' expectations and marked McDonalds' ninth straight quarter of gains.
-- Harman International Industries Inc. jumped 20.6 percent, the most in the Standard & Poor's 500, after the audio equipment maker's income trumped expectations.
-- Chipotle Mexican Grill Inc. leaped 8.3 percent after reporting a 25-percent jump in third-quarter income. The fast-casual chain raised prices, sold more burritos and opened new stores.
2) September Jobless Rates by State-From The Wall Street Journal
The federal government’s latest snapshot of state and regional unemployment is out, and New Mexico appears to be one of the few somewhat-bright spots.
The state saw the biggest drop in unemployment in September from a year ago, the U.S. Labor Department reported Friday in its latest breakdown of the 9.1% unemployment rate across the nation.
New Mexico’s 6.6% unemployment rate for September is two percentage points lower than it was a year ago. Only three other states — Florida, Oregon and Massachusetts — reported statistically significant decreases over the year, the new data show.
New Mexico’s growth tracks closely with that of the entire country, Mark Snead, an economist at the Denver Branch of the Federal Reserve Bank of Kansas City, said Thursday, according to the New Mexico Business Weekly. Mr. Snead said the U.S. economy averaged a 2.5% growth rate over the past nine quarters, according to the paper.
“You have had a very rapid turnaround and it looks like things are finally going your way,” in comparison to the U.S. economy, Snead said at the Albuquerque Economic Forum’s monthly breakfast meeting, the New Mexico Business Weekly reported . “You had a false start [in 2010], but are now on track with the U.S. cycle. Your growth potential is showing again.”
Snead said the state’s mining and manufacturing sectors have grown recently, the paper reported.
The Labor Department’s latest snapshot reflects an otherwise stubborn jobs picture. While half the states saw the jobless rate drop in September from the previous month, the rest, along with
Washington, DC., registered an increase or no change. North Dakota (3.5%) and Nebraska (4.2%) had the lowest unemployment rates.
3) FOREX-Dollar slumps to record low versus yen-From Reuters
The U.S. dollar slumped to a record low against the yen on Friday in its biggest one-day decline in nearly two months, bringing back into focus the threat of official intervention to weaken the Japanese currency.
Traders reported initial large selling of dollars from a U.K. clearer and macro funds, and losses accelerated after the pair broke through a series of stops around 76.30 and 75.90.
"No specific news. Just general investor impatience with the Bank of Japan's lack of a yen weakening policy," said Tommy Molloy, chief dealer at FX Solutions at Saddle River, New Jersey.
Talk that Japanese authorities may follow the footsteps of the Swiss National Bank in putting a floor in dollar/yen had buoyed the currency pair in recent sessions, but investors resumed yen buying after market speculation failed to materialize.
The euro rallied against the dollar, but fell against most other currencies, as doubts persisted that European leaders are able to deliver a solution to the escalating debt crisis soon.
The dollar fell as low as 75.78 yen on trading platform EBS , surpassing its previous record low of 75.941 set in August.
It last traded down 0.9 percent at 76.18 yen, coming off lows on reported buying from Japanese banks at the 76.00 level. At current levels, it was on pace for its biggest daily fall since Aug. 26.
If the yen does hold, it could hit 75.50 per dollar, followed by the 75.00 mark, Molloy said.
The euro last rose 0.8 percent to $1.3883 , recovering from a session low of $1.3703. It had hit as high as $1.3890 on Reuters data.
France and Germany said in a joint statement that European leaders would discuss a solution to the crisis on Sunday, but no decisions would be adopted before a second meeting to be held by Wednesday at the latest.
But the euro dropped 0.1 percent versus the yen to 105.76 . It also slipped 0.1 percent against sterling to 87.15 pence and lost 0.4 percent to 1.2269 Swiss francs.
Quote of the Day from Dave Ramsey.com:
You can do anything if you have enthusiasm. Enthusiasm is the yeast that makes your hopes rise to the stars. With it, there is accomplishment. Without it there are only alibis. — Henry Ford
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