How do spammers get names from my Contacts?

Can someone explain how spammers get names from your contacts?  The typical e-mail says it is from a person that is in my contact list but of course the actual e-mail address is not from that person.  It says that it is addressed to my name and the e-mail will say something like, "Dan, you need to try this!" and then has a link which of course I never click on.  So how do they know both the name of my friend and me?  Is that something they got from my friend's computer, from mine or from other traffic they have intercepted between us?  I'll copy the headers below, removing the name of my friend and my comcast, if that helps.  I note that there is a spam rating of "00000".  Mail spam filters don't seem to help this kind of junk.  Any other way to catch it?
Name from my contacts <bluedreams_182000@****>
To: Dan <my email at comcast>
Reply-To: Name from my contacts <rlhwygaoumbg@****>
Return-Path: bluedreams_182000@****
Received: from imta01.emeryville.ca.mail.comcast.net (LHLO imta01.emeryville.ca.mail.comcast.net) (76.96.30.13) by sz0012.ev.mail.comcast.net with LMTP; Wed, 27 Feb 2013 14:39:31 +0000 (UTC)
Received: from nm25-vm2.bullet.mail.ne1.yahoo.com ([98.138.91.213]) by imta01.emeryville.ca.mail.comcast.net with comcast id 5Sf51l00Y4cByPW01SfVQG; Wed, 27 Feb 2013 14:39:30 +0000
Received: from [98.138.90.53] by nm25.bullet.mail.ne1.yahoo.com with NNFMP; 27 Feb 2013 14:39:09 -0000
Received: from [98.138.226.128] by tm6.bullet.mail.ne1.yahoo.com with NNFMP; 27 Feb 2013 14:39:09 -0000
Received: from [127.0.0.1] by smtp215.mail.ne1.yahoo.com with NNFMP; 27 Feb 2013 14:39:09 -0000
Received: from localhost ([email protected] with login) by smtp215.mail.ne1.yahoo.com with SMTP; 27 Feb 2013 06:39:09 -0800 PST
X-Caa-Spam: 00000
X-Authority-Analysis: v=2.1 cv=Y8ZABXuN c=1 sm=1 tr=0 a=yFh+eeAJilq5jagfoJ6Fqg==:117 a=CjxXgO3LAAAA:8 a=C_IRinGWAAAA:8 a=f8_S3n9t2uQA:10 a=T2eDSQWuq6oA:10 a=oJL9TIRMo0YA:10 a=wPDyFdB5xvgA:10 a=YbZ8FP2_cKMA:10 a=qHrs9QlyAAAA:8 a=SOyKGQC6J-v4blZxIL4A:9
Authentication-Results: imta01.emeryville.ca.mail.comcast.net; dkim=pass header.d=yahoo.com header.b=My3CIG6B
Dkim-Signature: v=1; a=rsa-sha256; c=relaxed/relaxed; d=yahoo.com; s=s1024; t=1361975949; bh=SJ8H66WD9dGkowyk01012kCKbuWqBy+0rI9R1qHqC2I=; h=X-Yahoo-Newman-Id:Message-ID:X-Yahoo-Newman-Property:X-YMail-OSG:X-Yahoo-SMTP :Received:Subject:To:Date:Reply-To:From; b=My3CIG6BbP+C/REBNH0Pl1rvm3yRuYtg8FtSI9ICCCs5C3CwVik60zu9fmZ2TDVhIX45i0GSorNyM VeTh+4xG3CW4ugdA6f1/d84sSiaUH069pESMpBzR4PanZjFJt+OjjqTIHZW1xUcMUbk6aRTDV9IjpJoV ob5uvvmpjqpAq8=
X-Yahoo-Newman-Id: [email protected].****
Message-Id: <[email protected].****>
X-Yahoo-Newman-Property: ymail-3
X-Ymail-Osg: mI56qykVM1m4NTZzp53SpESUznrR9CMCxL1wR5kVhIPDSm_ kgx2B8h0MD84jBKTlb1pB40CAsrAcfoA1ObW.pSgRW1HNt962Rte8ky0A.Yq kExYbORoTN8V3EDFYI31vSePX_zypIbH.LPF0Dknu2dL9HE2ORUPTQ9QqNxr MYgfV7xcMNkoTXbptAnMOyFotVy2WGQs8SGccKGnfGQngm7lXZirQ_4MxAVV R4d9JZcQJaBCjksPq7MIUchCs8L3HKkwkd2PT3i8X3ceu08kjN_gUx_NlNtN 0fL1_i5PcYCl0Rc3tuew.vndrrt2b7fevo1E3Xqd6imPee4FFHll_yWV2c1v yGEMAYsx7fB9XbomsYZtJK9k6JguE.VIGjx1xQpiqszDEPLqILJ6uChhhCyA 9pCaw0u_Qbmdie7VdZRwZT7P.6D8GyhUb5AZ9EbXRNIwX2Hgq8DkkQa9QbI6 tCtZFp40KLE45lJCgg1K5frkPDFS.hSRljN1G7HnkkIeDZh63TOQ2DjLO_3B Q80PjDp5FFz9.1LZI3AsPsdeBpz3B_VIHzz_suN1aFQ--
X-Yahoo-Smtp: l_K7TJWswBDTfM_9zVF_23qtYt8VWAIMESQlX2QM
<Emails Edited By Host>

Someone has gained access to the Contact attached to your email account, probaby online (they don't need access to your computer) It is now too late to change that but change your password.
Both Comcast and Yahoo are about as secure as a wet paper bag.

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