Stock Market Update - Friday, November 5, 2010 - Cautious Trading Day

Stock Market Update

Friday, November 5, 2010

Latest US Economic News Headlines:

USA EQUITY INDEXES: (NOV. 5, 4:05 PM EDT)
Dow Jones 11,444.08 +9.24 (+0.08%)
S&P 500    1,225.85 +4.79 (+0.39%)
Nasdaq     2,578.98 +1.64 (+0.06%)

Dow Jones CLOSING Averages: DJIA 11,444.08 UP 9.24
  30 INDUS     11,444.08 UP    9.24 OR    0.08%
  20 TRANSP     4,923.40 DN    0.39 OR    0.01%
  15 UTILS        409.60 DN    0.12 OR    0.03%
  65 STOCKS     3,972.00 UP    1.37 OR    0.03%

US COMMODITY PRICES: (NOV. 5: 4:00 PM EDT)

Crude Oil     87.08     + 0.27%
Natural Gas     3.93     - 0.15%
Gasoline     2.19     + 0.28%
Heating Oil     2.39     -
Gold     1393.01     + 0.04%
Silver     26.71     + 1.33%
Copper     3.94     + 0.92%

US DOLLAR FUTURES INDEX DXY: NOV. 5, 4:05PM EDT: 76.59  Up 0.71 (0.93% ) 

US Dollar Recovers - US Stocks Seen Unchanged
U.S. stocks moved between small gains and losses Friday as mixed data entered the market news wires.

The Dow Jones Industrial Average gained 9 points, to close at 11,444.08.  At the close, the Nasdaq Composite gained 1.6 points to end the week at 2,578. The Standard & Poor's 500-stock index edged up 0.39% to end the volatile week at  1,225.

U.S. pending home sales slipped for the first time in three months in September. Nonfarm payrolls rose by a greater-than-expected 151,000 last month as private-sector employers added 159,000 jobs, the Labor Department said. The unemployment rate, which is obtained from a separate household survey, remained at a lofty 9.6% in October. 

US Stock Futures Gain After Jobs Data
Before the bell U.S. stock futures edged higher on Friday morning as the employment report came in better than expected.

The Dow Jones Industrial Average fell 2 points to 11433 in early trading. The Nasdaq Composite slipped less than a point to 2575. The Standard & Poor's 500 index edged up 0.1% to 1222.

EQUITIES:

Kraft Foods led the measure's drop, off 1.6%, after the food company posted an 8.5% drop in third-quarter profit as higher taxes, jumps in advertising spending and the costs for integrating Cadbury weighed. In addition, Starbucks Chief Executive Howard Schultz told investors his company will discontinue its arrangement to use Kraft as a distributor for its coffee products.

Shares of American International Group slipped 2.3%. The company swung to a $2.4 billion third-quarter loss as it booked $4.5 billion of restructuring charges.

Starbucks rose 3%. The coffee-shop chain said fiscal fourth-quarter net operating income doubled to $399.3 million and sales rose 17% to $2.8 billion.

Coventry Health Care climbed 4.6%. The company's third-quarter earnings more than doubled absent prior-year losses at discontinued operations as the managed-care company's claims costs fell.


US DOLLAR:
The U.S. Dollar gained overnight and after the previous session's inflation rally. The dollar rose, with the U.S. Dollar Index, which tracks the U.S. currency against a basket of six others, up 0.7%. 

Before the Jobs data report, futures on the Dow Jones Industrial Average fell 23 points to 11364 and S&P 500 futures were off 3.40 points to 1215.20. Nasdaq 100 futures slipped 4.75 points to 2179.70.

U.S. BANK FAILURES:

The FDIC Closed Banks Friday After Hours
The U.S. Government FDIC regulators closed several US Banks late Friday and seized all assets.The Federal Deposit Insurance Corp announced it closed four additional banks. Friday's announcement brings the total failures for 2010 to 143. 


First Vietnamese American Bank, Westminster, CA., November 5, 2010
Pierce Commercial Bank, Tacoma, WA., November 5, 2010
Western Commercial Bank, Woodland Hills, CA., November 5, 2010
K Bank, Randallstown, MD., November 5, 2010

To see the complete list of failed banks and credit unions visit:

Online Consultancy Network™ Bank Failure List
http://ocnww.blogspot.com/2010/09/bank-failure-list-update-september-1.html

France, China, Russia Want New Monetary System

French President Nicolas Sarkozy, after a meeting with his Chinese counterpart Hu Jintao, Friday called for world economic powers to stop squabbling and hammer out a new international monetary system. The two discussed the future of the international monetary system, and also the "regulation of commodities prices," in order to "try to have a more balanced, more stable world," Sarkozy said.

The ambition of France, which is next up to preside the G20 group of leading nations, is for all countries "to accept to sit around a table to lay the foundations of a new system that guarantees the stability of the world," Sarkozy said after a meeting with China's Hu Jintao.


US September Consumer Credit Increased $2.1B
Consumer Credit Declined 1-1/2 percent At An Annual Rate in The Third Quarter.

Americans boosted borrowing for the first time in eight months in September, the Federal Reserve said Friday.


Consumer credit outstanding grew a seasonally adjusted 1.1% in September, or $2.1 billion, to $2.412 trillion, according to the latest report from the Fed.

Revolving credit declined 8-3/4 percent at an annual rate, and non-revolving credit increased 2-1/2 percent.

The Sept. increase follows a revised $4.9 billion fall in consumer credit in August. The Fed had initially estimated consumer credit slipped $3.3 billion in August.

The latest report shows that in September households increased their use of non-revolving credit, such as car, tuition, vacation and boat loans. Non-revolving credit grew by $10.4 billion to $1.598 trillion.

G.19 Release--Consumer Credit--November 5, 2010
http://www.federalreserve.gov/releases/g19/Current/

U.S. Pending-Home-Sales Index Declined -1.8% To 80.9 in September

The National Association of Realtors' index for pending sales of existing homes fell 1.8% to 80.9, the industry group said Friday.

Year over year, the pending-home-sales index is 24.9% below its level of 107.8 in September 2009. The NAR on Friday also revised its August index upward slightly to 82.4 from the previously estimated 82.3.

The NAR index is based on pending sales of existing homes, including single-family homes and condominiums. A home sale is pending when the contract has been signed but the transaction hasn't closed. Pending sales typically close within one or two months of signing.

Pending home sales plummeted in May after the expiration of a government tax credit program but had been on the rise in July and August as rock-bottom mortgage rates and distressed property sales enticed buyers.

Several banks have been accused of improperly filing foreclosure actions based on paperwork that hadn't been properly reviewed. Chase Bank said that they will re-enter the foreclosure process in the next two weeks. Research indicated that some of the largest banks holding defaulted mortgage paper will incur a $12 billion loss as a result. The top banks holding large quantities of defaulted loans are Chase Bank, Bank of America, Citibank and Well's Fargo Bank.

Citigroup Inc. (C) is modifying some home loans as it works with attorneys general from 50 U.S. states investigating faulty foreclosures, Fox Business Network's Charles Gasparino reported Friday.

The National Association of Realtors is forecasting existing-home sales in 2011 will rise to more than 5.1 million from about 4.8 million this year. It expects housing starts to rise to 716,000 in 2011 from 598,000 this year.

The association expects median home prices will rise to $173,700 in 2011 from $172,600 this year. Regionally, the NAR's pending home sales index in September declined everywhere but in the West. In the West, the NAR's index rose 3.5% to 104.6, a level that is still 24.7% below its year ago level.

The NAR's regional index fell most steeply in the Midwest, slipping 5.7% to 64.2 -- 33% below its year ago level. In the South, the index fell 3.5% to 87.6, which is 19.1% lower than September 2009. The index declined 1.7% in the Northeast to 59.6. That figure is 28.3% lower than in September 2009.


LARGE US PAYROLL GAIN REPORTED
Non-farm payrolls for October reportedly climbed by 151,000, which is much better than the 60,000 increase that had been expected. 

It was the biggest increase since May. Non-farm payrolls for the prior month were revised upward to reflect a decrease of 41,000. The job report was expected to have risen by 60,000 in October, after a 95,000 decline in the previous month, with the unemployment rate seen static at 9.7 percent month-on-month.

Private payrolls for October increased by 159,000 in October. That was their biggest increase since April and also exceeded the 60,000 increase that had been widely expected. 

Private payrolls for the prior month were revised upward to reflect an increase of 107,000 increase. The headline unemployment rate still stands at 9.6%.

Average hourly earnings of all employees increased by $0.05 to $22.73, which could also help support consumer spending..

Fed's Move May Not Save The Job Market
"The Federal Reserve has a particular obligation to help promote increased employment and sustain price stability. Steps taken this week should help us fulfill that obligation."

The number of U.S. workers filing new claims for jobless benefits rose last week by more than expected, in yet another reminder of the weakness in the U.S. labor market.

Initial unemployment claims jumped by 20,000 to 457,000 in the week ended Oct. 30, the Labor Department said in its weekly report Thursday.

Instead of adding new workers, businesses are using their current workforces more efficiently. Output rose 4.1% over the year ended in the third quarter, with productivity up 2.5%, while hours worked rose just 1.6%.

At 8:30 A.M.EDT The October Unemployment rate for Non-Farm Payrolls (expected +60K), Unemployment Rate (expected 9.7%), Average Hourly Earnings (previous 22.67) More than 5 million people received the emergency benefits during the week ending Oct. 16, the latest data available. All told, more than 8.7 million people received jobless benefits that week.

The emergency benefits program, extended several times by Congress, is set to expire at the end of this month. Many analysts doubt Congress will extend it again. That could cause as many as 1 million people a month to lose benefits, according to the National Employment Law Project, a nonprofit group.


CRUDE OIL:
U.S. Crude Oil: $86.85

Crude Oil Settle At A Two-Year High

Light, sweet crude for December delivery settled up 36 cents, or 0.4%, at $86.85 a barrel on the New York Mercantile Exchange, the highest settlement since October 2008. Brent crude on the ICE futures exchange recently gained 12 cents, or 0.1%, at $88.12.

Crude settled higher every day this week, finishing up 6.7%. Crude oil futures are in the midst of a bull run, with the December contract up 0.5 percent to $86.88 a barrel December oil may try to hurdle the May 3 high of $87.15 a barrel throughout the global day, above which oil would be at its highest since October 2008.

US NATURAL GAS:
Futures Flat
Natural gas for December delivery recently traded 7.1 cents, or 1.8%, higher at $3.927 a million British thermal units on the New York Mercantile Exchange.

The U.S. Energy Information Administration reported Thursday that gas inventories rose 67 billion cubic feet in the week ended Oct. 29. Inventories are now 16 billion cubic feet below last year's record 3.837 trillion cubic feet.


PRECIOUS METALS:
U.S. Gold: $1,394

U.S. Silver: $ 26.76

Gold futures settled at a record high near $1,400 Friday. Gold advanced to a fresh record high of $1,394 an ounce and then speculators took profits, causing the metal to reverse course and fall 0.3 percent on the day to $1,387.96.

Gold is up some 27 percent so far this year, benefiting from inflation hedges and a recurring inverse relationship to the dollar's performance.

The most actively traded gold contract, for December delivery, gained $14.60, or 1.1%, to settle at a record $1,397.70 a troy ounce. It gained 3% on the week.


U.S. BONDS: (4:00 PM EDT)
3 Month     0.10%     0.00 (0.00%)
6 Month     0.14%     -0.01 (-6.67%)
2 Year     0.37%     +0.02 (5.71%)
5 Year     1.09%     +0.04 (3.81%)
10 Year     2.54%     +0.01 (0.40%)
30 Year     4.12%     0.00 (0.00%)

Treasurys were lower, pushing the yield on the 10-year note up to 2.51%.

____________________________________________________________

Canadian Market:

Toronto Stocks Higher
Toronto stocks ended higher in mixed trading, as some investors took profits on gains earlier in the week in response to increasing optimism over the prospects of a strengthening economic recovery.

The S&P/TSX Composite Index rose 46.32 points, or 0.36%, to 12925.11, advances exceeded declines 961 to 687 and trading volume was 606.80 million shares, down from Thursday's total of 696.60 million shares. The S&P/TSX 60 Index closed up 2.61 points, or 0.35%, to 740.34.

The stock market was higher Friday, as resource stocks continue to add to their gains from Thursday. At 11:45 CDT, the Toronto Stock Exchange was trading at 12924.3 points, up 45.4 points from Thursday's close.

At 11:45 a.m. EDT (1545 GMT), the S&P/TSX Composite Index was up 70.01 points, or 0.54%, at 12948.80 and advances led declines 852 to 552. Trading volume was 264.70 million shares.The S&P/TSX 60 Index was up 3.55 points, or 0.48%, to 741.28 points.

Canada Dollar Reaches Parity
The Canadian dollar reached parity momentarily Friday morning and was trading stronger at midday. At 11:45 CDT, the Canadian dollar was trading at C$1.0004 (99.96 US cents), compared to C$1.000 (US$1.00) at 08:55 CDT, and C$1.0024 (97.76 US cents) at Thursday's close.

Canadian Employment Remains Steady

Employment numbers remained virtually unchanged for the second-consecutive month in October, as full-time gains offset part-time losses, according to a report from Statistics Canada. The unemployment rate edged down to 7.9% and has been around 8% for the past seven months.

Potash Decision In Best Interest Of Economy

Canadian Prime Minister Stephen Harper said Thursday the government's decision to reject BHP Billiton Ltd.'s (BHP) hostile takeover of Potash Corp. of Saskatchewan (POT) was "clearly in the best interest" of the economy even as he stressed its policy of welcoming foreign investment.

Toronto Indexes 4:00 PM EDT

S&P/TSX Composite   12925.11  up   46.32  or 0.4%
S&P/TSX 60 Index      740.34  up    2.61  or 0.4%
Financials            182.70  up    1.45  or 0.8%
Materials             418.79  up    2.28  or 0.5%
Energy                301.86  off   0.12  or 0.0%
Industrials           106.70  off   0.29  or 0.3%
IT                     29.25  up    0.02  or 0.1%

   Volume           Friday    Thursday
   3-4:15            103.5M     129.2M
   9:30-4:15         607.1M     696.8M

____________________________________________________________

South American Markets:

BRAZIL:.

Brazil Stocks Close Lower
Brazilian share prices closed lower Friday.

Brazil's benchmark Ibovespa stocks index closed 0.53% lower at 72607 points. Volume was moderate at 5.91 billion Brazilian reais ($3.52 billion).

State oil company Petrobras (PBR, PETR4.BR) fell 0.91% to close at BRL27.25. Aircraft manufacturer Empresa Brasileira de Aeronautica (ERJ, EMBR3.BR), advanced 0.55% to BRL12.84 .

Mining major Vale SA (VALE, VALE5.BR) saw its shares fall 0.06% to close at BRL49.32 despite a rise in global metals prices. Telecom leader Tele Norte Leste Participacoes SA (TNE, TNLP4.BR), or Oi, retreated 1.36% to close at BRL25.45.

Steel maker Usiminas (USIM5.BR, USNZY) fell 0.22% to BRL22.28, and steel rival Cia Siderurgica Nacional (SID, CSNA3.BR), or CSN, declined 0.80% to BRL29.66.

Minas Gerais utility Cemig (CMIG4.BR) fell 2.33% to BRL29.40, and real estate developer Gafisa (GFSA3.BR) advanced 0.96% to BRL14.79..
.
Major Countries Must Align On Currency
Most South American and European Country's Disagree with QE2 Move

The world's major economies need to find a way to work together to ensure that currency fluctuations don't create problems for developing economies, Brazil Central Bank President Henrique Meirelles said Friday.

Efforts by the U.S. to bolster liquidity in its credit markets through non-conventional means could have spill-over effects that create risky bubbles in countries like Brazil, according to Meirelles.

"Excessive liquidity creates risks for everyone," said Meirelles, speaking to reporters at the headquarters of CME Group Inc. (CME). Meirelles said there are signs among some members of the Group of 20 meeting next week in Seoul, that could lead to an agreement on the matter.

"Many countries" feel the same way as Brazil on the matter, Meirelles said, which could better facilitate any deal making at next week's G20 meeting.

The move by the U.S. Treasury has troubled other major economies, said Meirelles, because countries like Brazil continue to grow and feature "robust" demand. The extra liquidity pumped into the system by the Fed could create "imbalances," he said.

Mexico's Stocks Higher

Mexico's Oct Consumer Confidence Up To 89.2

Mexican stocks opened higher Friday after a positive U.S. employment report, continuing a rally that includes a string of record high closes.

The IPC index of leading issues was up 0.2% at 36,268 points around 10:30 a.m. EDT. Volume was 19.1 million shares worth 513.4 million pesos ($42.1 million).

Cement maker Cemex CPO shares were up 0.3% to MXN11.82, retailer Wal-Mart de Mexico V shares were up 0.6% at MXN33.34, while bellwether America Movil L shares were 0.4% lower at MXN35.94.

The Ixe brokerage said valuations for the IPC stocks are close to their five-year highs, although it expects that multiples could remain high as emerging markets are expected to grow more than developed economies while fixed-income yields--a less risky alternative to equities--are also moving lower.

The peso was continuing its rise against the dollar, quoted in Mexico City at MXN12.1985 compared with MXN12.2240 at the close Thursday.

BBVA Bancomer said the peso lagged other Latin American currencies Thursday after the announced U.S. liquidity measures led to massive appetite for riskier assets, attributing that to the peso hitting resistance at MXN12.20. "Although U.S. cyclical risks prevail, the risk of foreign-exchange-market intervention is still lower if compared to other countries in the region," BBVA Bancomer said in predicting further peso gains.

PERU:

Lima Stock Exchange Ends Higher
Peru's main stock market indexes ended higher Friday as a number of blue-chip shares gained. Copper miners rose sharply on a strike in Chile that gave a boost to the price of the red metal.

The Lima Stock Exchange's broad General index closed higher by 0.85%, at 20402.51. The sol ended unchanged at PEN2.793 per dollar.The Central Reserve Bank of Peru didn't intervene in the foreign exchange market.

The Selective blue-chip index ended stronger by 1.76% at 29345.92.

Base metals miner Southern Copper Corp. (SCCO, SCCO.VL) increased 4.65% to end at $46.50 on improved copper prices. Copper miner Sociedad Minera Cerro Verde SAA (CVERDEC1.VL) rose 1.97% to end at $38.75.

Precious metals miner Compania de Minas Buenaventura SAA (BVN, BUENAVC1.Vl) increased 0.93% to end at $54.50 as the price of gold rose.

Financial holding company Credicorp Ltd. (BAP, BAP.VL) rose 0.08% to end at $126.50. It owns Peru's largest bank, Banco de Credito.



COLUMBIA:

Colombia Approves Stock Market Merger With Peru, Chile

Colombia on Friday approved merging its stock market with those of neighboring Peru and Chile, which experts said will become the second-biggest stock market in Latin America after Brazil's.

Colombian President Juan Manuel Santos and his Economy Minister Juan Carlos Echeverry "signed the decree authorizing the merger," a statement by the president's office said.

Representatives from the stock markets and central banks of the three nations will meet next week in Bogota to launch the new stock market Wednesday, it added.

A meeting of financial experts headed by Spain's BBVA Bank on Friday said the new stock market will boost overall trading in the three countries anywhere from three to five times the current volume.

"That would make this stock market the second-largest in Latin America after Brazil's," BBVA said in a statement.

____________________________________________________________
European Markets:

European stocks declined as the dollar regained minor value against the Euro. The EURO STOXX 50 declined slightly -12.76 (-0.44%) after the retail sector reported a decline in sales.
At 0949 GMT, the FTSEurofirst 300 index of top European shares was down 0.2 percent at 1,104.52 points.

In earlier/overnight trading, most European markets cautiously followed Asia higher, performing almost unchanged after rising 0.2 percent in early trade.

Euro-Zone Retail Sales Declined September
Retail sales in the 16 countries that use the euro fell for the second straight month in September.

LONDON:

FTSE 100                     5867.15    +4.36   +0.07%
FTSE 250                    11072.99   +56.53   +0.51%
DJ UK Smaller Companies       919.58    +3.91   +0.43%

Britain's FTSE 100 index is cautiously rising, tracking gains on Wall Street and in Asia, with commodities stocks advanced on firmer metals and crude prices, as investors awaited the key U.S. jobs report for October.

Royal Bank of Scotland (RBS.L) fell 2.2 percent as it expected challenging market conditions in the fourth quarter and said a UK bank tax would add up to 250 million pounds to its costs next year.


UK banking stocks fall under the spotlight on today, with trading updates due from both Royal Bank of Scotland (RBS.L) and HSBC (HSBA.L).

HSBC Executives Warn UK, EU Rules Could Drive It From London
HSBC Holdings PLC (HBC) executives Friday gave some of their strongest indications yet that the bank may have to bow to what some observers see as inevitable and move its headquarters abroad to escape European Union rules on bank remuneration. HSBC said pretax profit in the third quarter grew more slowly than in the first half of the year and that revenue is down in the first nine months of 2010 compared with a year earlier, though bad loans continued to fall across the regions it operates in, including the U.S.

The UK blue chip index looks set to rise 22 to 27 points, or as much as 0.5 percent, according to financial bookmakers, after it closed at its highest level in nearly 29 months on Thursday, up 113.82 points, or 2 percent, at 5,862.79.

Shell Sells Six Gulf Of Mexico Fields For $450 Mln
Royal Dutch Shell PLC (RDSA.LN) Friday said it has agreed to sell its interest in six Gulf of Mexico oil and gas fields to a unit of W&T Offshore Inc. (WTI) for $450 million as part its ongoing portfolio restructuring.

Oil prices rose to a two-year high on Friday, metals prices also rallied sharply, London copper rallying to fresh 27-month highs, as the Fed's move boosted the appeal of commodities in preserving value in an environment of dollar depreciation.

October UK PPI data is due at 0930 GMT.

(pending news)

____________________________________________________________
Asian Pacific Markets:

Asian stocks rose for a fifth day on Friday, with commodity-related shares boosting regional markets. The MSCI index of Asia Pacific stocks outside Japan were up 0.9 percent, led by 2 percent gains in both the materials and energy sectors.

CHINA:
The Shanghai Index closed at 3,129.50 +42.56 raising 1.38% percent. Shanghai zinc jumped 5% percent. Hong Kong's Hang Seng index finished the week at 24,876.82 +341.19 climbing 1.39% percent on strong turnover volume, extending its rise this week to 7.6 percent,

JAPAN:

The Nikkei share average led gains in Asian stocks a second day, rising 2.9 percent, with big exporters among the supporting factors for the index.

The Bank of Japan refrained from further monetary easing on Friday, resisting for now any temptation to boost its asset buying scheme to keep pace with the latest Fed's move.

Profits at Japanese car maker Toyota have continued to soar, with second quarter earnings nearly doubling to 98.7bn yen.

The company raised its profit forecast again, predicting earnings of 380bn yen ($4.7bn, £2.9bn) for the full year.

Executive vice president Satoshi Ozawaspoke of a continued "very tough business environment, characterised by the radically and seriously appreciated yen in recent months, the risk of slow down in demand recovery in the United States and Europe, and falling demand following the end of the eco-car subsidies in Japan." Mr Ozawa  warned the strong yen was putting "production levels" in Japan at risk.

AUSTRALIA:

Australia's S&P/ASX 200 was up 1.1%.

Qantas Says Rolls-Royce Design May Have Caused Engine Failure
Qantas Airways Ltd. (QAN.AU) Chief Executive Alan Joyce on Friday said the design of Rolls-Royce Group Plc (RR.LN) engines could have caused a mid-air failure that forced one of its A380 super jumbos to make an emergency landing in Singapore.

____________________________________________________________
WORLD FOREX CURRENCIES SNAPSHOT:
(WEDNESDAY, NOV 5, 2010 4:00 PM EDT)

EUR/USD     1.4044     -0.0171 (-1.20%)
USD/JPY     81.3400 +0.6000 (0.74%)
GBP/USD     1.6190     -0.0081 (-0.50%)
CAD/USD     0.9995     +0.0022 (0.22%)
USD/HKD     7.7505     -0.0005 (-0.01%)
USD/CNY     6.6550     -0.0059 (-0.09%)
AUD/USD     1.0144     -0.0006 (-0.06%


WORLD MARKETS SNAPSHOT:
(WEDNESDAY, NOV 5, 2010 4:00 PM EDT)

Shanghai     3,129.50     +42.56 (1.38%)
Nikkei 225     9,625.99     +267.21 (2.86%)
Hang Seng Index     24,876.82     +341.19 (1.39%)
TSEC     8,449.34     +91.49 (1.09%)
FTSE 100     5,875.35     +12.56 (0.21%)
DJ EURO STOXX 50     2,875.94     -8.27 (-0.29%)
CAC 40     3,916.73     -0.05 (0.00%)
S&P TSX     12,925.11     +46.32 (0.36%)
S&P/ASX 200     4,800.60     +55.30 (1.17%)
BSE Sensex     21,004.96     +111.39 (0.53%)

____________________________________________________________
FRIDAY'S U.S. ECONOMIC CALENDAR:

8:30 a.m.
Oct Unemployment rate Non-Farm Payrolls (expected +60K), Unemployment Rate (expected 9.6%), Average Hourly Earnings (previous 22.67), Average Hourly Earnings Net Change (previous +0.01), Manufacturing Payrolls (previous -6K), Overall Workweek (previous 34.2), Overall Workweek Net Change (previous 0), Service Producing Payrolls (previous -73K), Government Payrolls (previous -159K), Federal Payrolls (previous -76K), Private Payrolls (previous +64K)

8:30 a.m.
Philadelphia Fed Pres Plosser moderates panel in Jekyll Island, Ga.

9:15 a.m.
Minneapolis Fed Pres Kocherlakota speaks in Jekyll Island, Ga.

9:30 a.m.
Kansas City Fed Pres Hoenig speaks in New Orleans.

9:45 a.m.
Cleveland Fed Pres Pianalto moderates session in Jekyll Island, Ga.

10:30 a.m.
U.S. Treasury Chief Economist discusses employment numbers

11:15 a.m.
Dallas Fed Pres Fisher moderates panel in Jekyll Island, Ga.

12:30 p.m.
Sep Pending Home Sales Index Current (previous 82.3), MoM Pct Change (Current Period) (expected +3%), YoY Pct Change (Current Period) (previous -20.1%)

2:00 p.m.
Fed Chmn Bernanke speaks in Jacksonville, Fla.

2:45 p.m.
St. Louis Fed Pres Bullard moderates session in Jekyll Island, Ga.

3:00 p.m.
Sep Consumer Credit Monthly Net Change (expected -3B)

4:25 p.m.
Richmond Fed Pres Lacker moderates panel in Jekyll Island, Ga.

N/A
Federal Reserve Bank of Atlanta conference opens, attended by Fed Presidents

N/A
Federal Reserve Bank of Kansas City President Thomas Hoenig speech

____________________________________________________________
US STOCK MARKET SUMMARY, THURSDAY, NOV. 4, 2010:

Stocks:
US stocks rallied on an inflation rally after the Fed's action decreased the dollar's value. The stock market continues to trade inversely to the U.S. Dollar. Equities and commodities jumped to their highest levels since their September 2008 plunge during the bankruptcy of Lehman Brothers.

Investors pushed stocks higher as they digested the Fed's plans, announced Wednesday, to purchase an additional $600 billion of longer-term Treasury securities by June in a second round of quantitative easing, dubbed QE2.

Treasurys:
Treasurys rose as investors rode the euphoric wave of the Federal Reserve's government-bond buying plan. At the peak of the buying, the five-year note's yield hit a record low and the two-year note's yield touched an all-time trough. "The Fed is the key driver which keeps the party train moving forward," said James Combias, head of U.S. Treasury trading at Mizuho Securities USA.

Forex:
Investors bolted from the dollar, believing the Federal Reserve's bond-buying plan can hurt the greenback now--and later. Investors instead sought out other currencies with higher yields, benefiting the euro, sterling and commodity-based currencies. 


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