Market Watch 12/04/2009

Stock Market Closing Prices - 12/4/09

Dow Jones Industrial Average ( DJIA ) Close - 10388.22 +22.07
Nasdaq Stock Market Close - 2194.35 +21.21
S&P 500 Close - 1105.89 +5.97

Commodities Closing Prices - 12/4/09

Gold Close - 1157
Oil Close - 75.49
Natural Gas Close - 4.59

Stocks closed higher Friday but only after giving up much of their earlier gains. Indexes touched new highs for year in the morning following news that job cuts fell sharply in November, but that report also brought expectations that the Federal Reserve could hike rates or remove other supports from the economy. Treasurys and gold fell as demand for safe-haven investments eased.

The prospects of increased rates also led to a sharp rise in the dollar, which hurt prices for commodities including oil.

The Labor Department said the economy shed 11,000 jobs last month, the smallest monthly loss since December 2007, when the recession began. That's much better than the 130,000 losses Wall Street economists expected and an improvement from 111,000 jobs cuts in October.

The unemployment rate fell to 10 percent from a 26-year high of 10.2 percent in October. Economists had expected the rate to remain unchanged.

Stocks have been rising for nine months on hopes of a recovery, but investors have been worried that lingering unemployment would hold the economy back. The gains in stocks also come as the Fed's policy of low interest rates and extraordinary supports for the financial system have flooded financial markets with cash. Investors are now on edge about how markets will respond when policymakers begin to withdraw some of those measures.

Gold fell $78.80 to $1,169.50 an ounce on the New York Mercantile Exchange. Meanwhile, crude oil fell 99 cents to settle at a seven-week low of $75.47 a barrel.

Investors will have fewer economic reports to go on next week, but are likely to again take cues from the direction of the dollar. Reports are due on retail sales and consumer sentiment.