Stocks rally to end bumpy week on an upbeat note

|By:, SA News Editor

Stocks rallied for a second straight day, shrugging off a disappointing nonfarm payrolls report as "bad, but not that bad."

The rally erased Monday's big drop and pushed all three leading indexes into positive territory for the week; small caps have not enjoyed an equally robust rebound, as the Russell 2000 remains 1.3% lower for the week.

Mitigating the weak headline job growth number were a lower unemployment rate and a slight rise in the labor participation rate; the report also showed increased employment in construction, and a decline in government work.

Sentiment is enjoying a boost from earnings results, which show S&P 500 companies are on track to print average EPS gains of 9%-10%.

A rebound in the dollar/yen pair trade again occurred in conjunction with the rebound in futures and continued into the session.

The growth acceleration view didn't resonate as much in the fixed income market, where Treasury prices rose, sending the 10-year yield falling 2 bps to 2.681%.