Market Analysis from CapitalUpdates.com:

Note: Monday is Columbus Day in the US.  Bond markets, currency markets, banks, the post office, and all government offices are closed, but US stock markets will remain open.  Monday is Canada's Thanksgiving Day and Canadian markets will be closed.

Nonfarm Payrolls came in less than the expected 150,000 decline at a 35,000 decline.  While the decline was not as large as many expected, much of the effect from Hurricane Katrina has not yet been accounted for.  An estimated 230,000 payroll losses were attributed to Hurricane Katrina in the September number, with more expected to be seen in October’s number.  The BLS net birth/death adjustment added 54,000 payrolls, though it should be noted that this adjustment is to the non-seasonalized number, and it only affects the above seasonalized number by a small percentage. It should also be noted that September’s data was derived from surveys that only went until the 12^th.  Anyone still technically on a payroll was not counted as a payroll loss, even if they were not working or evacuated at the time of the survey.  Revisions to July and August added 77,000 payrolls.

The Unemployment Rate came in as expected at 5.1%, the Average Workweek came in as expected at 33.7, and Hourly Earnings came in as expected at 0.2%.

Wholesale Inventories for August came in higher than the expected 0.4% at 0.5%.  Consumer Credit for August came in less than the expected $5.0 billion at $4.88 billion.

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Oil rebounded from 2 month lows and gained $0.48 to $61.84 as traders closed positions ahead of the weekend.  For the week, oil is lower by $4.40 or 6.64%.

Treasuries initially dropped in early trade Friday as interest rates rose on the prospect that the fed will continue to raise interest rates since the loss in payrolls was not as great as many had feared, but bonds roared back to end the day with a slight gain as fears over a possible threat to New York city subways may have induced some safe-haven buying.  The yield on the 10-year rose to over 5 and ½ month intraday highs immediately following the jobs report before falling off for the rest of trade and ending with a slight loss.  For the week, the yield is higher by 0.76% and the bond is lower by 0.14%.

The Dow, Nasdaq, and S&P started off nicely higher Friday morning before dropping off to near unchanged by mid-afternoon trade and remaining just slightly higher into the close.  For the week, the Dow is lower by 2.62%, the Nasdaq is lower by 2.85%, and the S&P is lower by 2.68%.

Among the big names making news in the market Friday were News Corp, Research In Motion, Staples, Reckitt and Boots, GM and Daewoo, NYSE, Airbus and Boeing, and Disney.

The U.S. dollar index rose as the jobs report was better than expected.  For the week, the dollar is lower by 0.37%, the euro is higher by 0.83%, and the yen is lower by 0.16%.

This week’s economic reports:

Next week starts off economically on Tuesday with the release of the fed’s minutes from their last meeting.  Thursday brings Import and Export Prices, as well as the Trade balance and Treasury Budget.  Friday brings CPI, Retail Sales, and the preliminary reading for October Michigan Sentiment.

Gold & Silver Report from GoldSeek.com & SilverSeek.com: 

Gold traded mostly slightly higher in Asia and London before falling off in early New York trade, but it then rallied back in later trade to end near its highs with a gain of $2.20 to $474.00 to end at a new 17 and ¾ year closing high.  Silver traded slightly higher in Asia before adding to its gains in both London and New York.  Silver also ended near its highs with a gain of $0.16 to $7.69 to make a new 10 month closing high.

Silver last closed at a higher level on December 7^th, 2004 at $ 7.82.  Prior to that, it closed at $8.01 on December 1^st, 2004 and $8.20 on April 6^th, 2004.  Should it eclipse the $8.20 level on a closing basis, it will join gold at new 17 and ¾ year closing highs.  For the week, gold is higher by $5.30 or 1.13% and silver is higher by $0.27 or 3.64%.

“Also on Nymex Friday, the December copper traded as high as $1.809 a pound before finishing the session at a record $1.8085, up 2.55 cents for the day and up 4.7% from last week's close.”

Gold and silver equities started off trading mixed and near unchanged Friday morning, but they soon followed gold and silver higher and also ended near their highs of the day with nice gains.  For the week, the XAU is lower by 0.05%, the HUI is lower by 0.86%, and the GDM is lower by 0.43%.

All three indices still lag their highs made last Thursday the 29^th.  On a closing basis on that day, the XAU had made a new 8 and ½ year high at 114.47, the HUI had made a new 20 month high at 248.36, and the GDM had made a new all-time high at 788.45 as it has only been around since late 2004.

More Precious Metals Analysis:

“The gold market remained strong despite the big run up in the prior session and that suggests buyers are not easily discouraged. The silver market made a fresh 7 month high in the action Friday and would seem to be prepared to play catch-up with the rest of the precious metals. With the exception of a higher US Dollar the metals had a pretty supportive flow of news during the session, as the ECRI inflation measured reached a 5 year high and new terrorism developments were seen on the East Coast. We even think that the payroll readings were much better than many gold bulls would have expected as the numbers would seem to reduce the prospect of recession in the US off the storms.” - The Hightower Report, Futures Analysis and Forecasting

Gold & Silver Stock News Update from GoldReview.com:

A new stock report on Coeur d’Alene Mines Corp. by Peter Zihlmann posted here, Newmont’s trial in Indonesia, Anglogold Ashanti’s Cuiaba mine expansion, Placer Dome’s lawsuit filed by a Philippine province, and Seabridge’s increased gold resources at Courageous Lake were among the big stories in the gold and silver mining industry making headlines Friday.

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- Written by Chris Mullen

Winners & Losers tracks NYSE and AMEX listed stocks that trade over $1.

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