Stocks Rally Despite Awful Jobs Report

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In other U.S. markets Friday, the 10-year note fell 1-12/32 to 109-01/32 for a yield of 2.7% and the 30-year was down 2-01/32 to 126-06/32 for a yield of 3.13%.

January NYMEX crude futures fell $1.83 to $41.84, following the U.S. employment report.

February gold futures were lower at $757.40.

Among other stocks in the news Friday, shares of Hartford Financial Group (HIG) more than doubled after the insurer raised its 2008 EPS guidance to $4.70-$4.90. Hartfod said its operating businesses continue to perform well in a challenging environment, reflecting strong underwriting in property-casualty operations and a sharpening of focus in its life insurance operations. Hartford also noted that the year-end capital outlook for its life and property-casualty operations remains strong.

TRW Automotive (TRW) withdrew its 2008 sales and EPS guidance. The company notes that in recent weeks and subsequent to providing the 2008 full-year guidance on Oct. 30, both actual and forecasted levels of vehicle production in global automotive markets have declined beyond previously forecasted levels.

Yum! Brands (YUM) says fourth quarter-to-date sales trends show system-sales growth of 19% in mainland China, up 8% in YRI (Yum Restaurant Intl.), both on a local currency basis, same-store-sales growth for system of up 4% in mainland China, up 4% in YRI, up 2% in the US (with US company same-store-sales growth of 3%). The company sees 2009 EPS growth of at least 10%, excluding special items.

Alete Inc. (ALE) said it expects 2009 EPS of $2.10-$2.35. The electrical-power generation company says that after 2009, it expects strong annual earnings growth for a number of years due to continuing investments in its utility rate base. Alete also said it expects to increase its dividend when its board of meets in January, 2009.

Brown-Forman (BFB) posted second-quarter EPS from continuing operations of 94 cents, vs. 83 cents one year earlier, on 4.6% higher sales. Due to an estimated 12 cents per share net gain on the expected sale of Bolla and Fontana Candida, the company increased its fiscal 2009 EPS guidance to $3.00-$3.20, which also includes expectation of maintaining year-to-date trends for Jack Daniel's, Southern Comfort, and Finlandia. The company's board also authorized the repurchase of up to $250 million of its outstanding Class A and B common shares over the next 12 months.

Sonoco Products (ALE) cut its fourth-quarter EPS forcast of 60 cents-64 cents to 48 cents-52 cents and its 2009 outlook from $2.36-$2.40 to $2.23-$2.27. The company says that its businesses that serve industrial markets are seeing much larger than expected decline in volume and reduced profitability due to significantly slowing global economic conditions. Sonoco will close about 15 plants globally and cut about 700 positions for a cost of about $29 million. Including projected impact of higher pension costs, the company sees 2009 base EPS of $1.95-$2.05; excluding higher pension costs, it sees base EPS of $2.25-$2.35.

Big Lots (BIG) reported third-quarter earnings per share from continuing operations of 15 cents, vs. 14 cents one year earlier, despite a 0.2% comparable-store sales decline and flat total sales. The retailer sees fourth-quarter EPS from continuing operations of 90 cents-99 cents on a comp-store sales decrease of about 2%-4%, and expects $1.79-$1.88 for fiscal 2009 on a comp-store sales rise of about 1%.

Rambus Inc. (RMBS) says, at its request, the U.S. International Trade Commission (ITC) has instituted an investigation regarding infringement of Rambus's patents by NVIDIA Corp. (NVDA) and other companies whose products incorporate the accused NVIDIA products.