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US stocks advance for fifth day.. ."the economy is recovering." BLOOMBERG NEWS

I'm sorry to rain on Kenny and the other loonie's parades, but it would
appear ( to any sane analyst) that the economy IS picking up.

================

US stocks advance for fifth day
November 7, 2009 - 12:22PM

US stocks gained, overcoming the first unemployment rate exceeding 10 per
cent since 1983, as analyst upgrades of General Electric and Macy's helped
spur optimism that the economy is recovering. Gold reached a record above
$US1,100 an ounce.

GE gained the most in the Dow Jones Industrial Average, surging 6.2 per cent
as analysts said risks to its finance unit have diminished. Macy's 6.4 per
cent after JPMorgan Chase said the second-biggest US department store chain
probably beat analysts' third-quarter profit estimates. The Standard &
Poor's 500 Index rebounded from a 0.7 per cent drop after the government
said companies cut 190,000 jobs last month.

The S&P 500 climbed 0.3 per cent to 1,069.30 at 4 p.m. in New York and added
3.2 per cent this week after rising every day. The Dow added 17.46 points,
or 0.2 per cent, to 10,023.42. The Nasdaq Composite Index added 7.12 points,
or 0.34 percent, to close at 2,112.44.


Oil fell 2.8 per cent to $US77.43 a barrel in New York. Gold jumped to a
record $US1,101.90 an ounce in New York, and 10-year Treasuries rose,
sending yields down 0.03 percentage point to 3.50 per cent.

``Stocks rising in the face of the unemployment data is a recognition that
we're probably close to the peak in that number,'' said Mark Bronzo, a money
manager at Security Global Investors, which oversees $US21 billion in
Irvington, New York. ``It's a bad number, but people are thinking it may not
get a lot worse.''


58% surge, $US11.6 trillion

The S&P 500 has soared 58 per cent from a 12-year low in March after $US11.6
trillion in government spending, lending and guarantees returned the economy
to growth following a year of contraction. The benchmark index for US stocks
posted its first monthly decline since February in October as decreases in
consumer confidence and spending raised concern over the durability of the
economic recovery.

GE rose 6.2 per cent, the most since Sept. 16, to $US15.33. Analysts from
Sanford C. Bernstein & Co. and Oppenheimer & Co. raised their ratings and
share-price estimates for the owner of NBC Universal and GE Capital.

``The risk/reward balance has improved enough to warrant a more positive
stance,'' Bernstein's Steven Winoker wrote in a note to clients.

Macy's led a measure of retailers in the S&P 500 to a 1.7 per cent advance,
the second-best performance among 24 industries. JPMorgan analysts boosted
the company's rating to ``overweight'' from ``neutral.''

Amazon, gold

Amazon.com Inc. added 4.6 per cent to $US126.20. The largest Internet
retailer was raised to ``outperform'' from ``market perform'' at Sanford C.
Bernstein, which also raised its price estimate for the company to $US160 a
share. Amazon will see ``revenue re-acceleration,'' improved operating
margins and increased free cash flow, analysts led by Jeffrey Lindsay wrote
in a note today.

Lowe's Cos. rose 4.3 per cent to $US20.94 and Home Depot Inc. added 1.8 per
cent to $US26.08 after both companies were raised to ``buy'' from
``underperform'' at Bank of America Corp.

Gold rose as high as $US1,101.90 an ounce, heading for a ninth straight
annual gain, as investors seek to protect their wealth from the threat of
inflation and the debasement of the US currency.

American International Group Inc. tumbled 9.7 per cent to $US35.48, driving
financial stocks to the steepest decline among 10 industries in the S&P 500.
The insurer bailed out by the US government posted sales declines at its
property-casualty and life insurance divisions.

Slot machines

International Game Technology rose the most in the S&P 500, adding 8.7 per
cent to $US20.18. The world's biggest maker of slot machines posted profit
excluding some items of 20 cents a share in the fiscal fourth quarter,
beating the average analyst estimate by 23 per cent, according to Bloomberg
data.

Earnings have exceeded the average analyst estimate for 83 per cent of the
S&P 500 companies that have reported third- quarter results since Oct. 7,
according to data compiled by Bloomberg. That would mark the highest
full-quarter proportion in data going back to 1993.

Energy stocks in the S&P 500 lost 0.2 per cent as oil and natural gas
dropped. Gas for December delivery lost 3.9 per cent to $US4.595 per million
British thermal units.

``Energy demand is going to be muted with lower industrial activity and
consumers driving less, etc., etc.,'' said Jeffrey Schappe, who helps manage
$US17 billion as chief investment officer at BB&T Asset Management Inc. in
Raleigh, North Carolina.

Slumping demand

Sunoco Inc. led declines in energy stocks, dropping 9.4 per cent to $US28.21
for the second-biggest drop in the S&P 500. The largest refiner in the US
northeast reported a third- quarter loss after slumping fuel demand prompted
the company to cut rates on processing units, idle a refinery and scale back
its pension program. Tesoro Corp. lost 5 per cent to $US13.97.

Dynegy Inc., the Houston-based power producer that climbed the most since
Aug. 10 yesterday, fell 5.9 per cent to $US1.93.

The Reuters/Jefferies CRB Index of raw materials including grains, energy
and precious metals fell for a second day, losing 1.8 per cent. The Dollar
Index, a six-currency gauge of the greenback's strength, rose 0.1 per cent
to 75.777 at 4:41 p.m. in New York.

Nvidia Corp. added 7.3 per cent to $US13.16. The maker of graphics chips
reported third-quarter profit excluding some items of 19 cents a share,
beating the 10-cent average of analyst estimates compiled by Bloomberg.

Treasuries rose, reinforcing expectations the Federal Reserve won't raise
interest rates for an extended period. Yields on the two-year note, most
sensitive to rate changes, fell to 0.8321 per cent, the lowest since May 21.

``People are snapping up Treasuries,'' said Peter Jankovskis, who helps
manage about $US1.5 billion as co-chief investment officer at Oakbrook
Investments in Lisle, Illinois. The Treasury will sell $US81 billion of
notes and bonds next week.

The Chicago Board Options Exchange, a measure of stock- market volatility
known as Wall Street's fear gauge, dropped for a fifth straight day. The
VIX, as the benchmark for US stock options is known, lost 4.9 per cent to
24.19 as investors paid less for protection against declines in equities.

Bloomberg News

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