02/03/2012

From AP:

A drop in the unemployment rate to its lowest level in three years propelled stocks higher Friday... More evidence that the economy is gaining strength followed the jobs report. A trade group said the service industry expanded at the fastest pace since last February. The government also said factory orders rose 1.1 percent in December, supported by a rebound in orders for heavy machinery.

02/02/2012

From AP:

The average rate on the 30-year fixed mortgage fell this week to a record low, the ninth time that has happened in the last year. Even with the cheapest rates in history, the housing market remains depressed.

02/01/2012

From AP:

The recent run of better-than-expected economic data around the world, though still not suggesting a booming expansion, has helped lift equity markets as investors move away from a worst-case scenario for the global economy.

Stocks also got a boost after Greek Finance Minister Evangelos Venizelos said talks between Athens and its private creditors were "one formal step away" from a deal needed to avoid a messy default. Such a deal would be a significant step in removing one of the biggest worries for investors.

01/31/2012

From AP:

U.S. home prices fell for a third straight month in nearly all cities tracked by a major index. The declines show that most homeowners are not reaping the benefits from some signs of an improving housing market.

President Barack Obama on Tuesday urged Congress to act quickly on bipartisan measures that would extend tax breaks for small businesses and help startup companies raise money. He said he would sign the legislation "right away."

01/30/2012

From Reuters:

U.S. consumer spending was flat in December as households put the largest rise in income in nine months into their savings, potentially signaling slower consumption early in 2012.

A top Federal Reserve official on Monday said he would have preferred a more optimistic statement on the U.S. economy, after the central bank last week painted a grim picture of the recovery and forecast ultra-low interest rates until late 2014.

Small business payrolls grew at a slower rate in January and wages fell, an independent survey showed on Monday, suggesting the pace of overall job growth moderated after December's sturdy gain.

01/27/2012

From Reuters:

The economy grew at its fastest pace in 1-1/2 years in the fourth quarter, but a rebuilding of stocks by businesses and slower business spending warned of weaker growth in early 2012.

Much work remains to maximize U.S. employment and stabilize prices in the face of a "sluggish" economic recovery, and the Federal Reserve will do its part, said the head of the New York Fed bank.

The head of the U.S. futures regulator said on Friday his agency has made a "down payment" on efforts to bring more transparency to the swaps market but more work needed to be done.

The U.S. economy looks to be improving more than market consensus believes while the global driver for growth continues to come from major emerging markets, Goldman Sachs Asset Management Chairman Jim O'Neill said on Friday.

Americans were more optimistic about potential improvements in the job market in January, pushing consumer confidence to its highest level in nearly a year, a survey released on Friday showed.

01/26/2012

From Reuters:

New orders for manufactured goods rose in December and a gauge of future business investment rebounded, showing the economy ended the year with more momentum than previously thought.

The Federal Reserve has moved closer to embarking on a new round of its controversial money-pumping after the central bank and its chairman Ben Bernanke highlighted a grim outlook for the U.S. economy.

01/25/2012

From Reuters:

Federal Reserve Chairman Ben Bernanke said on Wednesday the central bank was ready to offer the economy additional stimulus after it announced interest rates would likely remain near zero until at least late 2014.

The Federal Reserve took the historic step on Wednesday of setting an inflation target, of 2 percent, a victory for Chairman Ben Bernanke that brings the Fed in line with many of the world's other major central banks.

iant PIMCO, told CNBC on Wednesday that the Federal Reserve will continue to keep its monetary policy accommodative for the next 2-5 years, calling it "QE 2.5."

Signed contracts for the sale of existing U.S. homes retreated from a 1-1/2-year high in December and demand for home loans fell last week, pointing to a moderation in home sales after recent hefty gains.

01/24/2012

From Reuters:

The Federal Reserve is expected to break new ground this week by providing a clearer window into official thinking on monetary policy and is expected to signal that interest rates will be held near zero into 2014.

U.S. workers suffered many more job losses during the 2007-2009 Great Recession than in downturns over the past 30 years, and fewer than half got another position within six months of the recession's official end, researchers said on Tuesday.

Few U.S. companies plan to step up hiring in the next six months although they do expect the economy to be a bit stronger this year, according to a poll released on Monday.

01/23/2012

From Reuters:

Few U.S. companies plan to step up hiring in the next six months although they do expect the economy to be a bit stronger this year, according to a poll released on Monday.

The Federal Reserve could take the historic step this week of announcing an explicit target for inflation, a move that would fulfill a multi-year quest of the central bank's chairman, Ben Bernanke.

Home sales hit an 11-month high in December and the number of properties on the market was the fewest in nearly seven years, pointing to a nascent recovery in the housing sector.

01/20/2012

From Reuters:

Home sales hit an 11-month high in December and the number of properties on the market was the fewest in nearly seven years, pointing to a nascent recovery in the housing sector.

The Federal Reserve previewed its new practice of announcing policymakers' interest rates projections on Friday, issuing a table that showed analysts may be able to guess where the policy consensus lies.

01/19/2012

From Reuters:

The world economy will lose momentum in 2012 but it will keep moving in the right direction, according to Reuters polls of around 600 economists who said crisis-hit Europe would drag on global growth.

The number of Americans filing for new jobless benefits dropped to an almost four-year low last week, and factory activity in the mid-Atlantic expanded moderately, suggesting the economy carried some momentum into the new year.

The pace of factory activity in the U.S. Mid-Atlantic region ticked up in January, though it was not as strong as expected as new orders slipped, a survey showed on Thursday.

Asia's economic growth may be settling into a middling pace that is too slow to provide significant global support but too fast to warrant aggressive policy easing.

01/18/2012

From Reuters:

U.S. factory output in December grew at the fastest pace in a year and homebuilder sentiment improved this month, further evidence the economy entered the new year on firmer footing.

Almost all U.S. metropolitan areas will see job growth in 2012, but for many areas it will still take years for employment to return to pre-recession levels, according to a report released on Wednesday by the U.S. Conference of Mayors.

Applications for home mortgages surged more than 20 percent last week, fueled by a wave of refinancing demand as interest rates dropped, an industry group said on Wednesday.

01/17/2012

From Reuters:

President Barack Obama's jobs council called on Tuesday for a corporate tax overhaul, expanded domestic drilling and new regulatory reforms, a set of proposals unlikely to provide a quick fix for high unemployment or gain much traction in an election year.

A gauge of manufacturing in New York State showed growth picked up in January, rising to the highest level in nine months as new orders and employment improved, the New York Federal Reserve said in a report on Tuesday.

Consumer prices in the euro zone fell more than previously expected in December, the start of a retreat from a November peak that should give the European Central Bank more room to cut interest rates as the economy heads for recession.

A consensus is emerging that the new year will again bring a slow but steady increase in business, after moderate growth last year that was capped by a holiday season that saw shoppers spend if stores gave out bargains.

01/13/2012

From Reuters:

Consumer sentiment hit an eight-month high in early January as Americans grew more optimistic about job prospects, a survey released on Friday showed.

The economy could improve one to two years earlier than it otherwise would if the Federal Reserve behaves "very aggressively," including possibly making additional asset purchases, a top Fed official said on Friday.

The Federal Reserve should not ease monetary policy further because that would lead to higher inflation without additional economic growth, Richmond Fed President Jeffrey Lacker said on Friday.

The U.S. Federal Reserve is considering ways to ease or tailor regulations impacting community banks, such as commercial real estate standards, as a way to boost their lending, a top Fed official said on Friday.

Import prices edged down in December as oil prices fell after a November surge, according to a government report on Friday that showed inflation pressures still muted.

01/12/2012

From Reuters:

U.S. retail sales rose at the weakest pace in seven months in December and first-time claims for jobless benefits moved higher last week, signs the economic recovery is shaky despite a recent pick-up in growth.

Factory activity in the U.S. Mid-Atlantic region grew at a slower pace than originally reported in December, the Philadelphia Federal Reserve Bank said on Thursday.

Business inventories rose 0.3 percent in November, reinforcing the view that fourth-quarter economic growth could get a boost as companies restock their shelves.

The monthly budget deficit climbed to $85.97 billion in December from $78.13 billion in the same month a year earlier, partly because some payments normally made in January were shifted to December, the Treasury Department said on Thursday.

01/11/2012

From Reuters:

Top Federal Reserve officials disagreed on Wednesday over how aggressive the central bank should be to spur faster growth and bring a lofty jobless rate down more quickly.

The U.S. Federal Reserve may need to raise interest rates before the middle of 2013, despite the central bank's repeated forecasts that it expected to keep rates ultra low until at least then, a top official said on Wednesday.

The housing market is showing some signs of improvement but still has pretty profound problems and may not have reached bottom, a top Federal Reserve official said on Wednesday.

Applications for U.S. home mortgages rose in the first week of the year as demand for both purchases and refinancing perked up, an industry group said on Wednesday.

If the first week in January 2012 tells us anything about the investment year ahead, it's to be skeptical about black and white thinking.

01/10/2012

From Reuters:

Federal Reserve officials on Tuesday signaled more help for the U.S. economy may be necessary despite recent data that suggested the recovery was picking up steam going into 2012.

Wall Street banks lowered their outlook for U.S. economic growth due to concerns over the European debt crisis, oil prices, regulatory uncertainties and "continued disarray in Washington," according to a financial industry survey released on Tuesday.

The number of jobs waiting to be filled was little changed in November, suggesting the labor market remained stable that month.

Small businesses grew more confident in the economy's future in December, marking a fourth straight month of improvement on a more optimistic outlook for business conditions and real estate gains, a survey released on Tuesday showed.

Inventories at U.S. wholesalers barely rose in November and growth in October was revised lower, suggesting the economy did not get as big a boost as expected from companies restocking their shelves.

01/09/2012

From Reuters:

Consumer credit surged in November by the most since October 2001, rising 10.0 percent on higher credit card debt and more student loans doled out by the government , a Federal Reserve report showed on Monday.

The Federal Reserve cannot rule out additional monetary easing even if steady growth and "acceptable" inflation make it harder to justify fresh action, a top Fed official said on Monday.

Home prices fell for a fourth straight month in November as distressed sales continued to weigh on prices, data analysis firm CoreLogic said on Monday.

Another 26,877 Homeowners won permanent reductions in their mortgages in November under the Obama administration's main foreclosure prevention program but the housing market remains fragile, a report on Monday said.

01/06/2012

From Reuters:

Employment growth accelerated last month and the jobless rate dropped to a near three-year low of 8.5 percent, the strongest evidence yet the economic recovery is gaining steam.

Three top Federal Reserve officials aggressively pushed on Friday for more stimulus for the U.S. housing market, saying that other government policymakers as well as the central bank should be looking at ways to help the sector in order to speed the economic recovery.

The policy steps that have been taken by the Federal Reserve to help the sputtering economy are completely appropriate, a top Fed official said on Friday.

Central bankers are approaching a deal to set an explicit inflation target, a top Federal Reserve official said, part of a campaign to boost the economy by guiding expectations on interest rate policy.

Friday's stronger-than-expected December U.S. jobs growth figures drew a sharp contrast with European numbers, but staffing executives who track labor demand on both sides of the Atlantic caution Europe's impact on jobs in the United States may yet prove deeper than it has so far.

01/05/2012

From Reuters:

The jobs recovery gathered pace as a measure of private-sector hiring surged in December and claims for unemployment benefits fell, suggesting the battered labor market may continue to strengthen in 2012.

As Wall Street anxiously awaits the Labor Department's monthly employment report due on Friday, a decent bet has emerged. Odds are, the government will say it underestimated recent job gains.

The pace of growth in the dominant U.S. services sector quickened a bit in December, an industry report showed on Thursday, suggesting continued improvement in the economy.

Private employers added 325,000 jobs in December, easily beating economists' expectations, a report by a payrolls processor showed on Thursday.

The research group that publishes an index of U.S. leading economic indicators on Thursday said it will replace outdated components of the index with those that more accurately pinpoint economic cycles.

01/04/2012

From Reuters:

New orders for factory goods rose solidly in November, but business spending on capital goods is cooling, a government report showed on Wednesday.

Demand for loans to buy homes and refinance mortgages slid in the final week of 2011, even as mortgage rates dipped, an industry group said on Wednesday.

Companies with 401(k) plans and their employees may have to wait a little longer to find out what they are paying for their plans.

Treasury Secretary Timothy Geithner will travel to China and Japan next week to discuss U.S. sanctions on Iran and the state of the global economy with top government officials, the Treasury Department said on Wednesday

01/03/2012

From Reuters:

Manufacturing grew at its fastest pace in six months in December, capping a late-year upswing, but a European slump and rising oil prices posed threats to the U.S. economy in the new year.

The Federal Reserve on Tuesday said it would begin publishing forecasts on the path of interest rates later this month, a move that could suggest rates will be on hold for longer than previously expected.

The euro zone's rescue fund, the European Financial Stability Facility (EFSF), appointed Credit Suisse, Deutsche Bank and Societe Generale on Tuesday as joint lead managers for its first 3-year, 3 billion euro bond sale.

Construction spending surged to a near 1-1/2 year high in November as investment in public and private projects rose solidly, cementing expectations of strong economic growth in the fourth quarter.

12/30/2011

From Reuters:

New U.S. claims for jobless benefits rose last week but the underlying trend pointed to an improving labor market, while regional factory data showed the economy gaining momentum as the year ended.

12/29/2011

From Reuters:

New U.S. claims for jobless benefits rose last week but the underlying trend pointed to an improving labor market, while regional factory data showed the economy gaining momentum as the year ended.

Foreign central banks' overall holdings of U.S. marketable securities at the Federal Reserve fell in the latest week, data from the U.S. central bank showed on Thursday.

Banks tightened the screws on lending to major financial market participants in recent months, the U.S. Federal Reserve said on Thursday, reflecting concerns about Europe's banking crisis.

12/28/2011

From Reuters:

Retail sales look poised for a solid finish to the holiday season as warm weather and deep discounts encouraged shoppers to hit stores or go online to snap up last-minute gifts, according to data released on Wednesday.

The U.S. Treasury again shied away from labeling China a currency manipulator on Tuesday, but it rapped the country for not moving quickly enough on exchange rate reforms.

12/27/2011

From Reuters:

U.S. consumer confidence hit an eight month high in December on improving job prospects, lending the economy further support, even though weak home prices could delay a recovery in the housing market.

President Barack Obama will nominate Harvard economist Jeremy Stein and Jerome Powell, an investment banker and former Treasury official, to the two empty seats on the Federal Reserve's policy-setting board of governors.

Shoppers found a mixed bag of bargains and so-so deals on Monday, as a day off for many Americans lured some out for what was likely to be the third-busiest shopping day of the holiday season.

12/23/2011

From Reuters:

Consumer spending was tepid in November and a gauge of business investment fell for a second straight month, suggesting the economy lost some of its recent momentum.

The U.S. government fell deeper into the red in fiscal 2011 with net liabilities swelling more than $1 trillion as commitments on government debt and federal benefits rose, a U.S. Treasury report showed on Friday.

A measure of future U.S. economic growth edged lower in the latest week, while the annualized growth rate also sagged, a research group said on Friday.

12/22/2011

From Reuters:

The number of Americans filing new claims for jobless benefits hit a 3-1/2 year low last week, bolstering views the economy was gaining momentum, even though third-quarter growth was revised down.

As Wall Street traders cheered positive jobs data on Thursday, they seemed to ignore layoffs and bonus cuts on their own trading floors that will hurt growth in the broader U.S. jobs market in the coming months, TrimTabs Chief Executive Charles Biderman said.

A gauge of future U.S. economic activity rose more than expected in November due to a sharp pick-up in new permits to build homes, suggesting economic momentum could increase by spring, the Conference Board said.

For the past decade, cattle ranchers and meat packers watched with despair as America's beef consumption steadily declined, ceding ground to leaner meats as well as vegetarian trends among the health-conscious.

Labor unions on Wednesday ramped up the pressure on Republican lawmakers to approve a Senate plan that would extend jobless benefits for millions of unemployed Americans.

12/21/2011

From Reuters:

Home sales rose in November, adding to hints of recovery, but updated data showed the housing crash was much deeper than previously thought.

Fitch Ratings on Wednesday warned again that the United States' rising debt burden was not consistent with maintaining the country's top AAA credit rating, but said there would likely be no decision on whether to cut the rating before 2013.

Should the euro zone debt crisis drag the continent into a recession, states and regions in the United States would not be immune to the fallout across the Atlantic, a report said on Wednesday.

The number of new home foreclosures jumped by more than 21 percent in the third quarter from the second as banks moved more aggressively after a pause to review how they deal with troubled borrowers, according to a report released by a bank regulator on Wednesday.

Applications for home mortgages slipped last week, led by a drop in purchase demand as low interest rates were not enough to entice home buyers, an industry group said on Wednesday.

The index that tracks tonnage hauled by American trucks rose sharply in November, compared with year-ago levels, as U.S. factory production of goods increased, the American Trucking Association (ATA) said on Wednesday.