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10B – Daily News – Saturday, November 6, 2010 Furniture Depot 235 So. Main St., Red Bluff 527-1657 MON.-FRI. 9:00-6:00 SAT. 9:00-5:00 • SUN. 11:00-5:00 NEW YORK (AP) — Stocks struggled to end barely higher Friday after a blowout report on job creation failed to extend a powerful rally this week driven by the Federal Reserve’s latest plan to pump up the economy. The Dow Jones industrial CONGRADULATIONS WORLD CHAMPION SAN FRANCISCO GIANTS IN HONOR OF THIS BUNCH OF MISFITS ALL MISMATCH MATTRESS SETS, ONE OF A KIND CHAIRS, BEDROOM PIECES OFFICE PIECES AND OTHER ODD OVERLOOKED MISFITS ALL MISFIT ITEMS CLEARLY MARKED WITH ORANGE TAGS……YAHOO GIANTS WIN!!!!!!! 50% OFF up to Stocks post meager gains despite strong jobs news Wall Street average waffled between gains and losses for much of the day before ending with a gain of just 9 points. Earlier in the week the Dow reached its highest level since September 2008, just before the peak of the financial crisis, over enthusiasm about the Fed’s $600 billion bond-buying program announced Wednes- day. Stocks rapidly lost momen- tum Friday, despite a report from the Labor Department showing that employers added 151,000 jobs last month, the first gain since May and far more than analysts had antici- pated. A poor profit report made Kraft Foods Inc. the worst-per- forming member of the 30 stocks that make up the Dow average. The huge food compa- ny said its net income fell more than 8 percent last quarter as it spent more to promote its brands. Bank of America Corp. and JPMorgan Chase & Co. rose sharply, bringing other financial shares along with them, on news that big banks may soon be able to raise their dividends. The Dow closed up 9.24, or 0.1 percent, at 11,444.08. The broader Standard & Poor’s 500 index edged up 4.79, or 0.4 per- cent, to 1,225.85, and the Nas- daq composite index edged up 1.64, or 0.1 percent, to 2,578.98. Treasury yields inched high- er as investors trimmed their holdings of defensive invest- ments. The yield on the 10-year note rose to 2.54 percent from 2.47 percent late Thursday. The dollar rose against other curren- cies, and commodity prices mainly rose. Stocks had been rallying this week as investors cheered the long-anticipated economic stimulus program from the Fed. The details of the plan were slightly more than many were expecting, and helped lead the Dow to a 220-point charge on Thursday. The October payrolls gain was tempered by news that the national unemployment rate, which is measured by a separate survey of households, remained stuck at 9.6 percent for the third straight month. The economy needs to consistently add at least 100,000 new jobs a month just to keep up with the expan- sion of the population. In Sep- tember, employers cut 95,000 jobs. Unemployment has remained stubbornly high despite the offi- cial end of the recession in June of 2009 and other bright spots in the economy, including gains in manufacturing and retail spend- ing. That high jobless rate has helped delay a rebound in the housing market and frustrated investors, everyday Americans and policymakers in Washing- ton. Speaking shortly after the jobs report came out, President Barack Obama said he was ‘‘open to any idea, any propos- al’’ to help jump-start the econ- omy. Obama, whose Democrat- ic party lost the House of Repre- sentatives in mid-term elections on Tuesday, said the country can’t afford two more years of partisan gridlock in Washing- ton. In other corporate news, Star- bucks Corp. jumped 3.8 percent after reporting late Thursday that its earnings doubled last quarter. The world’s largest cof- fee chain also raised its target for profits next year. Kraft fell 2.2 percent after its disappoint- ing earnings report. Fluor Corp. jumped 9.5 per- cent after the engineering and construction company said rev- enue and new awards rose. Coventry Health Care Inc. rose 5.9 percent after the health insurer said its income more than doubled in the last quarter and raised its full-year profit forecast. Overseas markets were most- ly higher. Britain’s FT-SE edged up 0.2 percent, Germany’s DAX rose 0.3 percent and France’s CAC-40 was flat. Japan’s Nikkei 225 jumped 2.9 percent after that country’s central bank outlined details of its own program to stimulate its economy by buying up debt securities. Exchange-traded fund exec: ETFs didn’t trigger flash crash BOSTON (AP) — Six months after the ‘‘flash crash’’ jolted the stock market and investor nerves, the exchange-trad- ed fund industry continues ★★ ★ to grow. That’s despite an uncomfortable fact: Seven- ty percent of the question- able trades that ended up being canceled involved ETFs. 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Yet it was ETFs, not stocks, that were hit the hardest from the sudden drop, federal regulators noted in a report on the crash. Understanding the role of ETFs in the flash crash requires a grasp of how they work, and how ETFs differ from stocks and mutual funds. ETFs bundle together the investments that are in a particular market index. Many investors hold them long-term, like mutual funds. But ETFs can be traded during daily ses- sions just like stocks. That makes it possible to lock in a preferred price with- out waiting for a closing price, unlike with mutual funds. ETFs are growing fast. They now number nearly 900, holding nearly $883 billion. That’s up 27 per- cent from a year ago. ETFs trade across about 50 U.S. exchanges that have increasingly become inter- connected, enabling split- second trading. On a typical day, ETFs make up around 35 percent of the trading volume on U.S. exchanges. So it’s reasonable to expect ETFs would account for a rough- 22755 Antelope Blvd. Red Bluff, CA 96080 (530) 527-9166 ly similar proportion of the canceled trades from May 6, rather than twice that amount. That disconnect requires explanation. That’s especially true when fear of volatility is driving many investors away from stocks, and could hurt ETFs’ surging popularity. It’s a concern that can’t be ignored, acknowledges James Ross, global head of ETFs at State Street Glob- al Advisors, a unit of Boston-based State Street Corp. and the No. 2 ETF sponsor behind BlackRock Inc.’s iShares ETF busi- ness. Ross is at the center of the discussion because he heads the ETF Commit- tee of Investment Compa- ny Institute, which has Open Mon. thru Sat. 10am – 6pm November is get your room on! Come check out our new addition! Variety of • Ballasts • Reflectors • Bulbs Wide Barber Shop $ Cheers 600 Open 6 days 570-2304 259 S. Main St. Tractor Supply Center Senior Cuts been working with regula- tors to explore ETFs’ role in the flash crash. Ross concedes that ask- ing if ETFs were to blame for the flash crash is a fair question, but says the irra- tional slide in prices of many ETFs wasn’t a cause, but rather a symptom, of the flash crash. Market anxiety was high because of the debt crisis in Greece and elsewhere in Europe. Ross says ETFs became the tool of choice for most big professional investors to offset some of their risk on a day that would have been volatile regardless of trading errors. Regulators concluded that a single trading firm’s use of a computer sell order triggered the flash crash, setting off a chain of events that ended with market players swiftly pulling money out. ETF trades were routed to exchanges where there was little cash, or liquidity. That created big gaps between what investors were willing to sell their ETF shares for, and what buyers were willing to pay. Prices for many ETFs went into free-fall. NOW OPEN oh yeah