Forty-two states lost jobs last month, up from 29 in July, with the biggest net payroll cuts coming in Texas, Michigan, Georgia and Ohio.

Stocks could extend their rally and the Dow industrials may climb above 10,000, should the Fed’s policy-makers and economic data support the view the economy is recovering from recession.

Forty-two states lost jobs last month, up from 29 in July, with the biggest net payroll cuts coming in Texas, Michigan, Georgia and Ohio.