Can’t Keep This Market Down, ’09 High and Then Some!

Market Summary

U.S. stocks jumped on Monday, extending gains from the previous week, on renewed risk-taking sentiment after the Group of 20 pledged to keep economic stimulus in place until a recovery was assured. 29 out of the 30 blue chips rose, sending the Dow Jones Industrial Average to its highest close this year. The major averages all powered forward, shaking off the 10.2% employment number from Friday.

The Dow Jones industrial average jumped 203.52 points, or 2.03 percent, to 10,226.94; a 13 month high. The Standard & Poor’s 500 Index rose 23.78 points, or 2.22 percent, to 1,093.08, while the Nasdaq Composite Index gained 41.62 points, or 1.97 percent, to 2,154.06.

Corporate mergers and acquisitions also boosted the market, with General Electric Co (GE) and Comcast Corp (CMCSA) agreed on a valuation of around $30 billion for a joint venture between NBC Universal and Comcast.

Dollar Pegged Commodities Soar

Energy and mining stocks were nice performing sectors, as called in the morning outlook as the falling dollar shot spot prices higher. Gold closed at a record $1,101.40 an ounce in New York, up $5.70 from Friday, after hitting a new high of $1,111.70 an ounce earlier in the day. The gold bugs are loving this, as gold has gained more than 23% on the year. Benchmark crude for December delivery on Monday rose $2 to settle at $79.43 a barrel on the NYMEX

More Layoffs on the Street

Sprint Nextel Corp (S) is starting the process of eliminating up to 2,500 jobs in the current quarter in an effort to save at least $350 million annually. The company employs 42,000 workers. The No. 3 U.S. mobile service said many of the job cuts would happen by the end of December and would include jobs across the entire company

Electronic Arts Inc.’s (ERTS) will cut 1,500 jobs, most by March 31, in a restructuring aimed at trimming at least $100 million in costs. The company currently has about 9,000 employees.

In their quarterly report, EA experienced a loss of $391 million, or $1.21 a share, compared with a year-earlier loss of $310 million, or 97 cents a share. Adjusted revenue rose 2% to $1.15 billion; compared to analyst expectations of $1.14 billion.