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Policy Outlook Supports a "Risk On" Trend

August 9, 2012

Although the unemployment rate did tick higher in July (from 8.2% to 8.3%), investors viewed the overall news as a positive and pushed stocks to a fourth week of gains.

-Bob Doll, Senior Advisor, BlackRock

August 9, 2012

Stocks struggled for most of last week until a stronger-than-expected July payrolls report was released on Friday. The data showed that 163,000 jobs were created for the month, significantly higher than the less-than-100,000 that was expected. Although the unemployment rate did tick higher in July (from 8.2% to 8.3%), investors viewed the overall news as a positive and pushed stocks to a fourth week of gains.

For the week, the Dow Jones Industrial Average climbed 0.2% to 13,096, the S&P 500 Index advanced 0.4% to 1,390 and the Nasdaq Composite rose 0.3% to 2,967. With these gains, stocks closed the week at a three-month high and are now up over 10% on a year-to-date basis.

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