Monthly Archives: August 2013

[08/15/13]  U.S. stocks fell the most since June as forecasts from Cisco Systems Inc. and Wal-Mart Stores Inc. disappointed while improving economic data pushed bond yields higher amid concern the Federal Reserve will reduce stimulus. All 10 major industries in the S&P 500 retreated, with technology and consumer-discretionary shares dropping more than 1.7 percent. Cisco and Wal-Mart lost at least 2.6 percent after reporting earnings. Gannett Co. tumbled 5.1 percent after Warren Buffett’s Berkshire Hathaway Inc. exited its stake in the newspaper publisher. Homebuilders rallied as confidence in the industry rose to the highest level since 2005 despite rising mortgage rates. The Standard & Poor’s 500 Index slipped 1.4 percent, the most since...

[08/15/13]  Employers fired the fewest workers last week since before the recession began almost six years ago, raising expectations that bigger job gains will soon give U.S. consumers the ability to boost spending. The number of claims for jobless benefits dropped by 15,000 to 320,000 in the week ended Aug. 10, the least since October 2007, according to Labor Department data today in Washington. Other figures showed consumer confidence hovered near a five-year high last week, builder sentiment jumped this month to the highest level since 2005 and manufacturing is struggling to gain traction following a slowdown earlier this year. Stocks and government securities tumbled as signs of an improving economy and stabilization in inflation...

[08/01/13]  The number of Americans filing new claims for unemployment benefits fell unexpectedly last week, touching a 5-1/2 year low, suggesting a steadily improving labor market. Initial claims for state unemployment benefits dropped 19,000 to a seasonally adjusted 326,000, the lowest level since January 2008, the Labor Department said on Thursday. Economists polled by Reuters had expected first-time applications to rise to 345,000 last week. While claims are extremely volatile in July because of summer auto plant shutdowns, the general tone of the report remained consistent with a pick-up in job gains. The four-week moving average for new claims, which irons out week-to-week volatility, fell 4,500 to 341,250. "This suggests the...

[07/31/13]  The Federal Reserve issued a 700-word statement on Wednesday, but four words would have sufficed: see you in September. As expected, the Fed’s policy-making committee voted to press ahead for now with its campaign to increase job creation. And its statement said nothing about how much longer it would continue to add $85 billion a month to its holdings of mortgage-backed securities and Treasury securities. But the Fed left its economic outlook basically unchanged, suggesting that the central bank still intended to reduce the volume of its purchases later this year. The statement, issued after a regular two-day meeting of the Federal Open Market Committee, acknowledged the...

[07/26/13]  Americans are more confident about the economy than at any time since July 2007, a survey found, suggesting consumers will spend more and accelerate growth in the months ahead. The University of Michigan said on Friday that its final reading of consumer sentiment in July was 85.1. That’s up one point from June and nearly 13 points higher than a year ago. Rising home prices and steady job gains are bolstering household wealth and income. The proportion of Americans who expect their inflation-adjusted incomes to rise in the coming year is greater than at any time since late 2007, the survey found. And the percentage of Americans who say...