Labor Resilient Action on Mixed Labor Data Reaction

In the wake of yesterday's steep broad-based declines on growing concerns about the impact of sovereign debt problems in the Eurozone on the global recovery, stocks have made it back to the flatline, overcoming early losses that came as traders tried to decipher a mixed labor report and festering debt concerns out of Europe. The Department of Labor reported an unexpected decrease in nonfarm jobs, while a separate survey conducted by the DOL showed the unemployment rate surprisingly fell below 10%. Treasuries are modestly higher on the short-to-mid end of the curve as the Street digests the jobs report, and ahead of an afternoon reading on consumer credit. The focus on jobs is overshadowing equity news, which showed Aetna missed the Street's profit projections, while Tyson Foods easily topped analysts' forecasts. Elsewhere on the equity front, UPS raised its quarterly dividend, and Air Products and Chemicals offered to acquire Airgas Inc for about $7.0 billion. Overseas, Asian markets tumbled in response to yesterday's global slide on employment uneasiness and sovereign debt concerns, and Europe is extending losses.