Saturday, 9 October 2010

US employment falls, stocks rise

US employment fell in September. Bloomberg reports:

The U.S. lost more jobs than forecast in September as local governments fired teachers and other workers in response to declining tax revenue.

Payrolls fell by 95,000 workers after a revised 57,000 decrease in August, Labor Department figures in Washington showed today. Private employers added 64,000 jobs, less than forecast. Wages and the workweek stagnated.

Investors heaved a sigh of relief. Again from Bloomberg:

Stocks rallied, sending the Dow Jones Industrial Average above 11,000 for the first time since before the May 6 crash, while shorter-term Treasuries rose and the dollar slipped as a decrease in U.S. jobs fueled speculation the Federal Reserve will buy debt to stimulate the economy. Corn, soybeans and wheat surged on concern that supply is dwindling.

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