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The Dow Now: US Stocks Flat Despite Poor Jobs Numbers


Bank of America and Caterpillar are leading midday gainers.

MINYANVILLE ORIGINAL Despite an August jobs report that is horrible whichever way you look at it, US stocks largely stayed flat, as investors wait to see if Ben Bernanke and the Federal Reserve will step in with further quantitative easing.

After a strong surge yesterday, the Dow Jones Industrial Average (^DJI) is up a slight 0.07% to 13,282.09 as of 12:02 p.m. EDT. This is the Dow's biggest jump since June 29.

Industrial stocks Caterpillar (CAT) (+3.89% to $88.09) and Alcoa (AA) (+2.40% to $8.97) both spiked after reports that China will soon begin a new wave of stimulus spending. The Chinese government has approved a plan to spend $150 billion on infrastructure projects ranging from new subways to highways, and the two companies will certainly aim to get on those projects.

Additionally, Alcoa benefited from news that one deal for fourth-quarter aluminum shipments to Japan will fetch a premium of $255 per tonne compared to the third quarter's rate of $200-$210 per tonne.

Bank of America (BAC) was another top Dow gainer, up 4.43% to $8.72 on trading volume of 142 million thus far, versus the three-month average of 140.7 million.

Kraft Foods (KFT) fell 5.16% to $40.13 after announcing the night before that its Mondelez international snack division would likely not be able to meet consensus earnings estimates because of unfavorable foreign exchange rates. Kraft is also due to spin off its North American grocery business next month.

Shares of Intel (INTC) also dipped 3.68% to $24.17 after the tech giant revised its third-quarter estimate downwards earlier today and also withdrew its full-year forecast. Intel has been hit by a drop in demand for its chips with PC sales falling precipitously worldwide.

Twitter: @sterlingwong
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