2010/08/06 22:21*DJ White House 'Not Worried' About Double-dip Recession
2010/08/06 21:59*DJ Euro Rises Above $1.33; US Jobs Data Weigh On Dollar
2010/08/06 21:28=DJ WORLD FOREX: Dollar Falls Vs. Euro, Yen On Disappointing US Payrolls-2-
NEW YORK -The dollar fell against the euro and yen Friday after disappointing U.S. payrolls figures cast further doubt on the pace of the economic recovery. Investors turned their backs on the dollar, pushing the greenback to the lowest level of 2010 against the yen, while sending the euro above $1.32. The weaker-than-expected U.S. jobs figures come at a time when investors are zeroed in on talk the Federal Reserve could restart a form of quantitative easing to kickstart a sagging economy. Friday morning, the euro was at $1.3227 from $1.3186 late Thursday, according to EBS via CQG. The dollar was at Y85.30 from Y85.74, after falling as low as Y85.22, its 2010 low. The euro was at Y112.82 from Y113.16. The U.K. pound was at $1.5905 from $1.5884. The dollar was at CHF1.0446 from CHF1.0475. The ICE Dollar Index, which tracks the greenback against a trade-weighted basket of currencies, was at 80.597 from 80.766. The U.S. economy shed more jobs than expected in July while the unemployment rate held steady at 9.5%. Nonfarm payrolls fell by 131,000 last month as the rise in private-sector employment was not enough to make up for the government jobs lost, the U.S. Labor Department said Friday. Only 71,000 private-sector jobs were added last month while 143,000 temporary workers on the 2010 census were let go. Economists polled by Dow Jones Newswires were expecting total nonfarm payrolls to drop by a smaller 60,000 in July. The weaker-than-expected U.S. jobs data came after Canada earlier reported its own disappointing jobs figures, which weighed on the Canadian dollar. Canadian employment figures disappointed expectations, showing the economy unexpectedly shed 9,300 net jobs in July, the first decline in employment since last December. The unemployment rate rose to 8.0% from 7.9% the previous month, Statistics Canada said Friday.
2010/08/06 20:50*DJ September 10-Yr Treasury Futures Hit Contract High of 124-15+
2010/08/06 20:50*DJ Fed-Funds Futures Rule Out Rate Hike At Apr 2011 FOMC Meeting
2010/08/06 20:47*DJ Rate Futures Prices Jump, Yields Seen Down, On Weak Jobs Data
2010/08/06 20:44*DJ 2-Year Treasury Yield Falls To Fresh Record Low
2010/08/06 20:44*DJ 10-Year Treasury Yield At Lowest Level Since April 2009
2010/08/06 20:43*DJ September Gilts Hit New Contract High After US Jobs Data
2010/08/06 20:41=DJ DATA SNAP:US July Nonfarm Payrolls -131K; Jobless Rate 9.5%
WASHINGTON -The U.S. economy shed more jobs than expected in July while the unemployment rate held steady at 9.5%, a further sign the economic recovery may be losing momentum. Nonfarm payrolls fell by 131,000 last month as the rise in private-sector employment was not enough to make up for the government jobs lost, the U.S. Labor Department said Friday. Only 71,000 private-sector jobs were added last month while 143,000 temporary workers on the 2010 census were let go. Economists polled by Dow Jones Newswires were expecting total nonfarm payrolls to drop by a smaller 60,000 in July. The June data was revised down significantly. Payrolls fell 221,000 that month, more than the 125,000 drop previously reported, as only 31,000 jobs were added in the private sector. Taking into account revisions to prior months this year, the U.S. economy added an average of less than 100,000 jobs a month in the first seven months, a level that's not strong enough to bring unemployment down. The jobless rate, which is calculated using a separate household survey, held steady at 9.5% in July. Economists were expecting it to edge higher to 9.6%. After the worst recession in decades, the recovery that began in July 2009 has recently been losing momentum, but it's hard to say if it's just a temporary slowdown or if the economy could start to contract again. The Federal Reserve may consider taking steps to support the economy when officials meet next Tuesday. Some worry that with unemployment still so high and consumer prices recently dropping, the U.S. economy runs the risk of falling into a Japan-like deflationary trap of very slow growth and falling prices. Friday's report showed that manufacturing jobs continued to trend up, rising by 36,000 after a 13,000 increase in June. Motor vehicles and parts had fewer seasonal layoffs than normal in July, the Labor Department said. Construction, a sector of the economy that is still suffering, lost 11,000 jobs in July. Total government employment fell by 202,000 last month, hurt by the laying off of the census workers and by 48,000 jobs lost in state and local governments, which have significant budget strains. In a sign of the labor market's continued weakness, Friday's report showed that 45% of unemployed Americans, or 6.6 million people, were out of work for more than six months in July. The longer someone is without a job, the harder it is to find work. With time, people lose skills -- and employers are often loathe to hire someone who hasn't been working for long periods. In a slightly positive sign, the average workweek edged higher to 34.2 hours in July from 34.1 the previous month. More hours means more pay, giving a lift to consumers' spending power. Meantime, the report also showed that average hourly earnings of all employees increased by $0.04 to $22.59 in July. The Labor Department's employment report can be accessed at: http://www.bls.gov/news.release/empsit.toc.htm
2010/08/06 19:05DJ Japan Noda: Haven't Received Order From PM For New Economic Steps
TOKYO -Japan Finance Minister Yoshihiko Noda said Friday he has yet to receive any instructions from the prime minister to craft new measures to stimulate the nation's slowing export-driven economy. 'I haven't been given any instructions regarding additional measures' yet from Prime Minister Naoto Kan, Noda told reporters after a Cabinet meeting. The government will likely examine for some time how the nation's economy takes shape and then decide whether any fresh stimulus is necessary, he said. Noda's remarks highlight that the Kan administration isn't in a hurry yet to introduce new growth steps, as it struggles to balance the needs of budgetary reform and economic support.
2010/08/06 18:01*DJ German Jun Indus Output Forecast +0.7% MM
2010/08/06 18:01*DJ German Jun Mfg Output -0.9% MM; Construction -0.9% MM
2010/08/06 18:01*DJ German Jun Unadjusted Indus Output +14.7% YY
2010/08/06 18:00*DJ German Jun Indus Output Adj -0.6% MM; +10.9% YY
2010/08/06 17:05=DJ DATA SNAP: UK Manufacturing Output Weaker Than Expected In June
LONDON -U.K. manufacturing output grew less than expected in June, while the wider measure of industrial production posted a surprise monthly drop due to summer maintenance of oil fields, official data showed Friday. However, the Office for National Statistics said the data wouldn't lead to any revision of the preliminary estimate of second-quarter gross domestic product growth published July 23, as they were in line with earlier estimates. Manufacturing output increased 0.3% from May and was 4.1% stronger than in June last year. Economists were expecting manufacturing output to increase 0.6% on the month and 4.4% on the year, according to a Dow Jones Newswires survey last week. In May, manufacturing output rose 0.3% on the month and a downwardly revised 4.2% on the year. Industrial production as a whole fell 0.5% on the month and was 1.3% stronger on the year in June, the ONS said. That followed May's increase of 0.7% on the month and a revised 2.5% on the year. Economists were expecting industrial production, which includes manufacturing, mining and quarrying, and electricity, gas and water supply, to increases 0.6% on the month and 4.4% on the year. The ONS said the monthly drop was caused by summer maintenance on oil fields. Production of oil and gas dropped 6.0% on the month and 10.9% on the year in June, the sharpest monthly fall since August last year and the biggest year-on-year drop since September 2009. ONS Website: www.ons.gov.uk
2010/08/06 17:04=DJ DATA SNAP: UK July PPI +0.1%, Input Prices Biggest Drop In Year
LONDON -U.K. factory-gate prices rose very slightly on the month in July while monthly input producer prices saw their biggest drop in a year, data from the Office for National Statistics showed Friday. Amid growing concern about near-term inflationary pressures, the ONS reported that the output producer price index rose 0.1% on the month in July compared with a fall of 0.3% in June. In year-on-year terms, the output PPI rose 5.0% after a 5.1% gain in June. That is the smallest annual increase since March. Economists polled by Dow Jones Newswires last week had forecast the output PPI would increase 0.1% on the month and 4.9% on the year. Prices of petroleum products, alcohol and tobacco were the main downward drag on the output PPI on the month. Prices of food, textiles and clothing provided the main upward pressure. Meanwhile, the annual rise in textile and clothing output prices continued to accelerate, rising to 1.9%, its highest rate since records began in 1998. Excluding volatile food, beverages, tobacco and petroleum prices, output producer prices rose 0.2% on the month and 4.7% on the year. Economists estimated that core output producer prices rose 4.9% from July 2009. Meanwhile, the input price index for materials and fuels purchased by the manufacturing industry fell 1.0% in July on the month, the biggest monthly decline since July 2009. Input prices rose 10.8% on year. Economists tipped the input PPI to fall 0.6% on the month but rise 11.2% on the year. Web site: www.statistics.gov.uk
2010/08/06 16:35*DJ UK Jun Indus Production Forecast +0.6% MM, +4.4% YY
2010/08/06 16:33*DJ UK Jul Core Output PPI +0.2% On Month; +4.7% On Year
2010/08/06 16:33*DJ UK Jul Output PPI Was Forecast +0.1% MM, +4.9% YY
2010/08/06 16:33*DJ UK Jul Input PPI -1.0% On Month; +10.8% On Year
2010/08/06 16:33*DJ UK Jul Input PPI Was Forecast -0.6% MM, +11.2% YY
2010/08/06 16:32*DJ UK 3Mo Mfg Output +1.6%; 3Mo Industrial Production +1.0%
2010/08/06 16:32*DJ UK Jul Output PPI +0.1% On Month; +5.0% On Year
2010/08/06 16:31*DJ UK Jun Industrial Production -0.5% On Mo; +1.3% On Yr
2010/08/06 16:30*DJ UK Jun Mfg Output +0.3% On Mo, +4.1% On Yr
2010/08/06 16:30*DJ UK Jun Mfg Output Was Forecast At +0.6% MM, +4.4% YY
2010/08/06 16:08DJ JGBs Fall As Share Prices Pare Losses; US Jobs Data Eyed
TOKYO -Japanese government bond prices fell Friday as share prices pared losses and the yen lost some ground, prompting players to sell safe-haven JGBs to take profits. The JGB-selling came as Japan's benchmark Nikkei Stock Average made up lost ground to close down only 0.1% at 9,642.12. The strong yen, which hurts the country's key exporters, also lost some steam, with the dollar trading at Y86.16 at 0600 GMT compared with Y85.74 in New York Thursday. But JGB prices could bounce back next week if the closely watched U.S. non-farm payrolls report for July, due at 1230 GMT, comes in weaker than expected. Such a result could add to concerns over the global economic recovery, increasing demand for JGBs. While the benchmark 10-year yield rose back above 1.000% after breaking that level Wednesday for the first time in seven years, it could again head below that mark next week, analysts said. Even if the payrolls report surprises to the upside, the benchmark yield likely won't rise sharply as players buy JGBs on dips in prices. Market participants next week will be watching the Bank of Japan's policy board and the Federal Reserve's Open Market Committee, both of which conclude meetings Tuesday. While Japan's central bank isn't expected to take any further easing steps now, speculation is mounting that the Fed could take such measures. If the payrolls result is worse than expected, 'there will be renewed expectations about Fed easing next week,' said Naomi Hasegawa, senior fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities. That could push the 10-year U.S. Treasury yield under 2.900%, pushing the benchmark JGB yield back below 1.000%, Hasegawa said. Other analysts said that while Japanese investors' profit-taking could offer some support to yields early next week, they may remain at low levels for now. 'We do not believe the market is over-heated just because the 10-year JGB yield is around 1%,' said Makoto Yamashita, chief Japan interest rate strategist at Deutsche Bank. 'Assuming concerns over an economic slowdown linger, we believe expectations of additional monetary easing will support the market up through next week's FOMC meeting.
2010/08/06 15:04=DJ BOJ WATCH: BOJ Likely To Stand Pat To Weigh Impact Of Yen's Rise
TOKYO -The Bank of Japan's policy board will likely keep its super-easy monetary policy unchanged when it meets Monday and Tuesday, taking a breather to weigh the impact of the yen's recent strength on the country's fragile economic recovery and refraining from taking any new policy steps.Still, the BOJ could act at any moment if the yen surges much higher and starts to undermine the export-dependent economy. Earlier this week, the dollar fell to a fresh eight-month low of Y85.32. While it bounced back to around Y86 soon afterward, the greenback could resume falling if closely watched U.S. July jobs data due at 1230 GMT Friday come in weaker than expected.But so far, BOJ policy makers have been subdued in their reaction to the yen's surge, in contrast to their response to a similar surge late last year.After the greenback fell to a 14-year low of Y84.82 on Nov. 27, it took the BOJ only days to adopt a new countermeasure against the yen's rise. In a hastily convened early December policy meeting, the central bank set up a new fund-provision facility to lend three-month funds to banks at a rock-bottom 0.1%.The problem then was that both the economic footing and the financial system were so fragile that the yen's appreciation presented an imminent threat to the real economy as well as to business sentiment, people familiar with the BOJ's thinking said.Current conditions, on the other hand, are much better as both the domestic and global economies are on a recovery track and financial markets are relatively stable, they said.The policy board, therefore, will likely keep its policy interest-rate target on hold at 0.1%--where it has been since December 2008--and take no unconventional easing steps next week.Barring the dollar's rapid and sustained fall below Y85, some analysts expect the board to sit back until after its September meeting. At the end of that month, the central bank's next quarterly tankan business sentiment survey will allow it to assess the impact of the yen's appreciation on the corporate sector. The central bank could even maintain a low profile until late October, when it reexamines the medium- to long-term economic outlook in its semiannual report.In recent months, the central bank has made rather optimistic assessments of the country's economy, saying it is showing signs of a moderate recovery thanks to pickups in exports and industrial production.For next week's meeting, the market focus will be on whether the central bank raises the alarm over downside risks either in a statement to be released with its rate decisions, or when Gov. Masaaki Shirakawa speaks to the press at 0630 GMT Tuesday.After the previous meeting in July, the BOJ chief said upside risks from faster-than-expected growth in emerging economies, and downside risks-- including instability in international financial markets caused by the European sovereign debt crisis--were balanced.But some officials, such as new policy board member Ryuzo Miyao, have recently put a stronger emphasis on downside factors in the BOJ's scenario--especially a possible slowdown in the U.S. economic recovery.Recent data indeed show signs of weaknesses in the U.S. Initial jobless claims published overnight unexpectedly rose to the highest level since April. High unemployment is one of the Federal Reserve's key concerns, and could eventually throw cold water on improvements in the global economy.'The situation has changed such that the BOJ now can't help but be more conscious about downside risks due to recent instability in foreign exchange rates--the dollar/yen's fall to a eight-month low--and a more cautious outlook for the U.S. economy,' said Mari Iwashita, chief market economist at Nikko Cordial Securities.Many BOJ watchers also expect political pressure on the BOJ for more aggressive easing to mount after the ruling Democratic Party of Japan holds its presidential election, planned for September.
2010/08/06 14:57DJ Forex Options: Dollar/Yen Volatilities Edge Up; US Jobs Data Eyed
TOKYO -Dollar/yen currency options edged higher in Tokyo Friday on slightly stronger hedging demand, as the U.S. unit stayed under Y86.00 for much of the morning session after retreating below that level overnight on weak U.S. economic data.Benchmark one-month at-the-money dollar-yen volatilities rose to 10.90%/11.60% from 10.80%/11.50% Thursday in New York. Attention is focused on the U.S. non-farm payrolls for July due at 1230 GMT, with any weaker-than-expected result possibly pushing option prices up further next week.Benchmark volatilities could rise about 0.50 percentage point in that case, said an options dealer at a brokerage in Tokyo.A median forecast of economists surveyed by Dow Jones Newswires is for the employment report to show 60,000 jobs shed in July compared with 125,000 in June. The economists tip the unemployment rate to rise to 9.6% from 9.5% in June.
2010/08/06 12:37DJ RBA: Higher Credit Spreads Have Had Modest Impact On Bank Funding Costs
SYDNEY -The Reserve Bank of Australia said Friday the overall cost of funds for domestic banks will likely increase only modestly by the end of 2011. The view downplays expectations that higher risk premium on term debt and intense competition to win deposits would prompt Australia's banks to lift lending rates outside or above any move by the central bank. In its quarterly Statement on Monetary Policy, the RBA said term spreads remain well below highs touched during the financial crisis and competition for new deposits is easing. The bank estimates overall funding costs could rise by around five basis points over the next 18 months. It said that although the cost of term wholesale borrowing for Australian banks has risen recently, the increase has had only a modest impact on funding costs. 'Recent increases in bond spreads are estimated to have had only a small effect on the major banks' overall funding costs to date,' the RBA said. Australia's banks have issued around A$15 billion both locally and offshore in the three months to the end of July. For deposits, the RBA noted the average spread of new term deposit rates relative to wholesale market interest rates has fallen by between 30 and 40 basis points from their February peak. From here, the RBA estimates the average spread on banks' outstanding bonds will increase by between 20 and 25 basis points by the end of 2011.
2010/08/06 09:34*DJ RBA: Forecasts June 2011 GDP Growth At 3.75% On Year, Unchanged
2010/08/06 09:34*DJ RBA: Raises June 2011 CPI Forecast To 3.25% Vs 3.0%
2010/08/06 09:32*DJ RBA: Leaves Underlying Inflation Forecasts Unchanged
2010/08/06 07:33DJ CBO: Federal Budget Deficit Reaches $1.2T Through July
WASHINGTON -The federal budget deficit reached $1.2 trillion through the first 10 months of fiscal 2010, a slight improvement from the same point last year, the Congressional Budget Office said Thursday evening. The deficit in July was $169 billion, around $11 billion less than in July last year, the non-partisan congressional scorekeeper said in its monthly budget assessment. The federal government's deficit for the fiscal year is on track to be between $1.2 trillion and $1.3 trillion, the CBO said recently in its most up-to-date yearly forecast. That would be slightly less than the $1.4 trillion recorded in fiscal 2009, the highest mark ever. The current fiscal year ends on Sept. 30.
2010/08/06 05:31=DJ US Stocks Slip On Caution Ahead Of Friday's Jobs Data-2-
NEW YORK -U.S. stocks fell slightly Thursday as investors traded cautiously ahead of the government's nonfarm payrolls report due Friday morning.The Dow Jones Industrial Average declined 5.45 points, or 0.05%, to 10674.98, although it is still up 2% so far this week ahead of the monthly employment data.American Express was the Dow's weakest component, with a drop of 89 cents, or 2%, to 43.22, while Pfizer dropped 25 cents, or 1.5%, to 16.19 and Microsoft (Nasdaq) slipped 36 cents, or 1.4%, to 25.37.The Nasdaq Composite shed 10.51, or 0.46%, to 2293.06. The Standard & Poor's 500 index lost 1.43, or 0.13%, to 1125.81, with its technology and financial sectors leading the drop.The declines followed an unexpected increase in weekly jobless claims that cooled investors' expectations for the government's monthly jobs report due Friday.'The jobs report is probably the most significant statistic' for the market now, said Greg Walker, global investment strategist at J.P. Morgan Private Bank.While Walker said his firm is 'cautiously optimistic' for the employment report, he added, 'We're prepared to be disappointed if the statistics continue to come in the way they have.'Thursday's declines were limited by the consumer-discretionary sector, which was lifted by encouraging retail sales at Kohl's, Abercrombie & Fitch and Macy's although some other retailers disappointed.Kohl's climbed 1.91, or 4.1%, to 49, as the department-store retailer met analysts' expectations for same-store sales and raised its second-quarter earnings guidance. Abercrombie advanced 73 cents, or 1.9%, to 39.53, as the teen retailer handily topped analysts' estimates. Macy's edged up 34 cents, or 1.7%, to 19.78, following better-than-expected July same-store sales and as the company said its back-to-school season is off to a great start.
2010/08/06 04:50DJ US Fed Total Discount Window Borrowings Wed $63.77 Bln
WASHINGTON -The U.S. Federal Reserve's balance sheet rose slightly in the latest week as borrowing increased by commercial banks from the Fed's discount lending window.The Fed's asset holdings in the week ended Aug. 4 climbed to $2.330 trillion from $2.329 trillion a week earlier, the Fed said in a report released Thursday.Total discount window borrowing fell to $63.77 billion on Wednesday from $64.17 billion a week earlier. But borrowing by commercial banks through the Fed's discount window rose to $62 million from $26 million a week earlier.U.S. government securities held in custody on behalf of foreign official accounts rose to $3.155 trillion from $3.151 trillion in the previous week.Treasurys held in custody on behalf of foreign official accounts as of Wednesday increased to $2.326 trillion from $2.319 trillion in the previous week.Holdings of agency securities fell to $829.64 billion from the prior week's $831.60 billion.Further data on the Fed's balance sheet, including a breakdown of district-by-district discount window borrowing, can be found at http://federalreserve.gov/releases/h41/Current/h41.pdf.
2010/08/06 02:58DJ PRECIOUS METALS: Gold Rises On Refuge Buying After Jobs Data
NEW YORK -Gold futures rose for a seventh consecutive day Thursday as weakness in other markets enhanced the demand for refuge assets.The most actively traded gold contract, for December delivery, settled up $3.40, or 0.3%, at $1,199.30 an ounce on the Comex division of the New York Mercantile Exchange.An unexpected increase in weekly U.S. claims for jobless benefits Thursday hit equities and growth-sensitive commodities, sending investors seeking the perceived safety of U.S. government debt and gold. Precious metals are seen by some investors as a better store of value during economic uncertainty than other assets.Gold futures have advanced since a selloff on July 27, as physical buyers entered the market at bargain prices. The rally has come in small steps at times. Gold futures have settled with gains of 0.3% or less three days this week.Analysts said gold's momentum was slowed because prices advanced too high for bargain buyers and new investment demand hasn't materialized to lift the market further. Prices broke above the $1,200 an ounce mark in intraday trading Thursday, but couldn't hold those gains.'People are buying the dips, but they're also selling on the rallies,' said Frank Lesh, broker and analyst with Chicago-based FuturePath Trading. By some measures, gold demand hasn't climbed along with prices this week. The amount of gold held by exchange-traded funds fell for six consecutive days going into Thursday, said Suki Cooper, analyst with Barclays Capital.Physically backed gold ETFs, which are traded on exchanges like stocks or mutual funds, are tied to the price of gold and backed by bullion stored in vaults.Despite the current uncertainty surrounding gold's direction, prices will likely reach $1,500 an ounce in 2011, the chief executive of Randgold Resources Ltd. (GOLD) said Thursday. Mark Bristow said fallout from the economic crisis will drag the global economy into a correction next year, increasing investor demand for safe havens. Bristow said supply constraints will also support prices.Gold settled at a record high of $1,258.30 an ounce June 18.Comex silver rose with gold, settling up 4.3 cents, or 0.2%, at $18.321 an ounce.Nymex platinum and palladium both declined, hit as the fallout from Thursday's unemployment report struck industrial commodities. October platinum ended down $13.70, or 0.9%, at $1,572.50 an ounce. September palladium fell $4.10, or 1.5%, to settle at $496.05 an ounce. Settlements (ranges include open-outcry and electronic trading): London PM Gold Fix: $1,192.50; previous PM $1,199.50 Dec gold $1,199.30, up $3.40; Range $1,192.00-$1,202.80 Sep silver $18.321, up 4.3 cents; Range $18.185-$18.480 Oct platinum $1,572.50, down $13.70; Range $1,567.00-$1,591.00 Sep palladium $496.05, down $4.10; Range $489.00-$500.35
2010/08/06 02:37DJ US Senate Votes To Approve $26B In Aid To States, Local Governments
WASHINGTON -The U.S. Senate voted Thursday to approve a package of $26 billion in aid for state and local governments, funded partly by an $11 billion tax increase on U.S. multinational corporations.In what was one of the final moves by the Senate before lawmakers depart Washington for the summer recess, Democrats were able to score a significant victory for a core constituency of their party: labor unions and public-sector workers.But at the same time, they handed a hefty tax bill to U.S. companies with units overseas that have been able to pay a lower corporate income tax rate on profits derived from their foreign businesses.The Senate voted 61-39 to approve the measure, with just two Republicans joining with every single Democrat to vote in favor of the legislation.House Democratic leadership indicated Wednesday they plan to bring back lawmakers in that chamber to give final approval to the legislation, likely Aug. 10.The House began its six-week recess at the end of last week. It is rare for lawmakers to return to Washington in the midst of a recess.For Democrats, whose various efforts to boost job creation have been largely stymied by Republicans in the Senate, the vote will provide ammunition for campaigning during the break.The legislation would provide $16 billion in aid to help states pay rising Medicaid costs.Current federal funding for the expansion of the program, which provides health care for the poor, expires at the end of the year. Democrats are seeking to continue the funding through the first six months of 2011.Hospital stocks have been rising in anticipation of the final vote but were down slightly in recent trading amid a broader market downturn.Robert W. Baird analyst Whit Mayo said Wednesday that despite the recent rally, he sees more upside, adding the group could rally another 10% or so higher in the next few days.The bill would steer a further $10 billion to local governments to help them avert layoffs of teachers and other public-sector workers like firemen and police officers.Democrats said the legislation would enable state and local governments to avert layoffs or create 290,000 public sector jobs this fall.The legislation's full $26 billion cost is offset by tax increases or spending cuts elsewhere in the federal budget. This was what allowed Democrats to break the logjam and win enough Republican support to pass the legislation.The majority of Republicans were critical of the legislation, arguing it was handing U.S. corporations--which they say are proven job creators--another reason to move more of their operations to other countries. At the same time, they said, it was essentially rewarding traditional Democratic supporters at the expense of large firms.
