Stocks Rally Despite Awful Jobs Report

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"Wow, the data are far worse than expected across the board and should be bullish for Treasuries and bearish for stocks and the dollar, but it's not clear how much upside there still is in Treasuries," wrote Action Economics analysts in a website posting Friday.

"While we expect the FOMC to cut the funds rate target to 0.5% at the December 15, 16 policy meeting, it we suspect they might also alter their statement to indicate that the effective funds rate will continue to trade below the target as they keep the system flush with reserves," says Action Economics.

Employers are slashing costs to the bone as they try to cope with sagging appetites from customers in the U.S. and in other countries, which are struggling with their own economic troubles.

President-Elect Barack Obama said Friday the jobs report pointed to the need for more action by the federal government. "There are no quick and easy fixes to the crisis, which has been many years in the making, and it's likely to get worse before it gets better," he said in a statement.

The carnage -- including the worst financial crisis since the 1930s -- is hitting a wide range of companies.

In recent days, household names like AT&T Inc. (T), DuPont (DD), JPMorgan Chase & Co. (JPM), as well as jet engine maker Pratt & Whitney, a subsidiary of United Technologies Corp. (UTX), and mining company Freeport-McMoRan Copper & Gold Inc. (FCX) announced layoffs.

Addding to the economic gloom Friday, the U.S. mortgage delinquency rate rose a record 6.99% in the third quarter, according to a report from the Mortgage Bankers Association (MBA), compared to 6.41% in the second quarter. Loans already in foreclosure increased to 2.97% (from 2.75% in the second quarter), also a record clip. The data show that one in ten Americans are either behind on mortgage payments or had their home in foreclosure last quarter. According to the report, the rise in delinquencies was paced by an increase of loans with payment 90 days or more past due, which increased to 2.2% from 1.83% in the second quarter. Mississippi, Louisiana, Michigan, and Indiana had the highest rates of delinquency, between 11.7% and 9.3%.

Fighting for their survival, the chiefs of Chrysler LLC, General Motors Corp. (GM), and Ford Motor Co. (F) returned Friday to Capitol Hill to again ask lawmakers for as much as $34 billion in emergency aid. GM shares were lower Friday, while Ford shares were higher.