Stocks eked out a gain Friday after a rocky session as investors juggled a disappointing jobs report and some analyst upgrades.
The Dow Jones Industrial Average rose 17.46, or 0.2 percent, to close at 10,023.42. The S&P 500 and Nasdaq each gained about 0.3 percent.
The gains for the week were far more impressive: All three indexes are up at least 3.2 percent from where they ended last week, snapping a two-week losing streak. And the CBOE volatility index, widely considered the best gauge of fear in the market, dropped more than 20 percent, finishing the week below 25.
The Labor Department said employers cut 190,000 jobs in October and the unemployment rate jumped to 10.2 percent, its highest level in more than 26 years. Economists had expected to see a job loss of 175,000 and unemployment rate of 9.9 percent.
The move above 10 percent on unemployment initially rattled the market but David Joy, chief market strategist at RiverSource Investors, said he doesn't see it as a setback for the recovery.
"I read it as a relatively constructive number, because the trend continues to improve. The headline number of course will keep consumer confidence under pressure, but I'm not that hopeful that the consumer is going to make a big contribution to this recovery anyway," he said on CNBC this morning. "I do think we're in the early stages of a global recovery, but I think it's going to be led by the business community, not by the consumer, and so this does nothing to change that point of view."
Investors were also focused on some analyst upgrades in the market.
General Electric was the biggest gainer on the Dow today — and for the week — after two firms, Oppenheimer and Bernstein, raised their ratings on the stock to "outperform,"saying they see signs of major divestitures coming. GE is the parent of CNBC.
Selling off businesses could generate as much as $25 billion to $30 billion in revenue — almost one-fifth of the company — analysts said.
"Much of the bet on GE is a bet on the company's ability to reinvest proceeds in enterprises that add value for shareholders," Winoker wrote in a note to clients.
Insurers Travelers and XL Capital got a boost after Goldman Sachs upgraded the stocks to "buy" from "neutral."
Amazon was among the top gainers in the Nasdaq 100, up 4.6 percent, after Bernstein upgraded the online retailer to "outperform" from "market perform."
Macy's rose 6.4 percent after JPMorgan raised its rating on the stock to "overweight" from "neutral."
Yesterday's retail-sales reports were largely disappointing, as more than half of the stores missed their targets, but analysts noted signs that discretionary spending is making a comeback.
"This time around the higher end consumer is coming back last," Kimberly Greenberger, an analyst at Citigroup, said on CNBC. "We think there's a lag of around six months between activity and the stock market and what drives spending among higher end households. That does coincide here with a very robust holiday, so we're encouraged." (Watch the video.)
Greenberger said she likes Tiffany, Urban Outfitters and Limited Brands.