August 2011 U.S. Economic Fundamentals
- Thread starter Ally
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As earnings season hits home stretch, focus turns to jobs
Debt crises in Europe and the United States have been hogging most of the attention among investors recently, but the U.S. economic recovery has also been a source of great concern, following a steady drip of disappointing data.
Attention is going to return to the economy this week, and reports should provide a better picture of whether the recovery is back on track or falling into a deeper slump.
Read the full article here.
Debt crises in Europe and the United States have been hogging most of the attention among investors recently, but the U.S. economic recovery has also been a source of great concern, following a steady drip of disappointing data.
Attention is going to return to the economy this week, and reports should provide a better picture of whether the recovery is back on track or falling into a deeper slump.
Read the full article here.
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Running out of time
The weather around here has been pretty hot lately but it`s been even hotter in Washington, D.C., where Democrats and Republicans have been locked in a pitched battle over the debt ceiling, the credit cap that Congress puts on the national debt. In what is normally a mundane legislative process worthy of C-Span television coverage, the negotiations were held in the theatre of public opinion. Judging by the leakage we had in the equity and commodity markets this week, investors clearly did not like the overhang of uncertainty.
The philosophical and political differences between Democrats and Republicans are so sharp that no long-term agreement on spending and revenues seemed possible but a compromise has been reached just ahead of Tuesday`s deadline. The United States AAA credit rating is pretty much toast since according to Standard & Poor`s there is at least a one-in-two likelihood that they may lower its long-term rating within the next 90 days.
As the debt debate raged last week, economic news was mostly mixed with U.S. new home sales down for a second straight month but consumer confidence surprising to the upside. In the U.S., the tone from the Beige Book was a bit weaker than the June report. The biggest disappointment showed the U.S. economy grew less than forecast in the second quarter after almost stalling at the start of the year. Bonds rallied on the GDP report which dimmed the prospects for faster growth in the rest of 2011. Canada`s economy has also slowed due to fire and weather disruptions in the energy and mining sectors. The Canadian dollar declined against all of its major trading partners as evidence of a general North American slowdown took a toll on the loonie.
Read the full article here.
The weather around here has been pretty hot lately but it`s been even hotter in Washington, D.C., where Democrats and Republicans have been locked in a pitched battle over the debt ceiling, the credit cap that Congress puts on the national debt. In what is normally a mundane legislative process worthy of C-Span television coverage, the negotiations were held in the theatre of public opinion. Judging by the leakage we had in the equity and commodity markets this week, investors clearly did not like the overhang of uncertainty.
The philosophical and political differences between Democrats and Republicans are so sharp that no long-term agreement on spending and revenues seemed possible but a compromise has been reached just ahead of Tuesday`s deadline. The United States AAA credit rating is pretty much toast since according to Standard & Poor`s there is at least a one-in-two likelihood that they may lower its long-term rating within the next 90 days.
As the debt debate raged last week, economic news was mostly mixed with U.S. new home sales down for a second straight month but consumer confidence surprising to the upside. In the U.S., the tone from the Beige Book was a bit weaker than the June report. The biggest disappointment showed the U.S. economy grew less than forecast in the second quarter after almost stalling at the start of the year. Bonds rallied on the GDP report which dimmed the prospects for faster growth in the rest of 2011. Canada`s economy has also slowed due to fire and weather disruptions in the energy and mining sectors. The Canadian dollar declined against all of its major trading partners as evidence of a general North American slowdown took a toll on the loonie.
Read the full article here.
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U.S. markets slide on slow job gains
U.S. markets dipped lower Wednesday after Automatic Data Processing Inc. said 114,000 jobs were added to the economy in July.
ADP also revised the previous month's job gain estimate from 157,000 to 145,000.
While the figure is far stronger than May's gain of 38,000 jobs, July's gain is less than is required to bring down the nation's 9.2 percent unemployment rate.
Read the full article here.
U.S. markets dipped lower Wednesday after Automatic Data Processing Inc. said 114,000 jobs were added to the economy in July.
ADP also revised the previous month's job gain estimate from 157,000 to 145,000.
While the figure is far stronger than May's gain of 38,000 jobs, July's gain is less than is required to bring down the nation's 9.2 percent unemployment rate.
Read the full article here.
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U.S. private sector adds more jobs than expected
NEW YORK ` U.S. private employers added 114,000 jobs in July, topping economists` expectations, a report by a payrolls processor showed Wednesday.
Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 100,000 jobs. June`s private payrolls were revised down to an increase of 145,000 from the previously reported 157,000.
Read the ful article here.
NEW YORK ` U.S. private employers added 114,000 jobs in July, topping economists` expectations, a report by a payrolls processor showed Wednesday.
Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 100,000 jobs. June`s private payrolls were revised down to an increase of 145,000 from the previously reported 157,000.
Read the ful article here.
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U.S. debt not only crisis on horizon
The United States looks set to escape a crushing debt default, but it has yet to find a way to escape the economic quicksand.
A half-hour into a relief rally on the bi-partisan deal to raise the United States` borrowing ceiling and cut the deficit by US$2.4-billion, markets were undercut by figures showing manufacturing activity plunged to its slowest pace in two years.
The figures were much worse than forecast and add to a string of data showing the world`s biggest economy virtually grinding to a halt this summer.
Read the full article here.
The United States looks set to escape a crushing debt default, but it has yet to find a way to escape the economic quicksand.
A half-hour into a relief rally on the bi-partisan deal to raise the United States` borrowing ceiling and cut the deficit by US$2.4-billion, markets were undercut by figures showing manufacturing activity plunged to its slowest pace in two years.
The figures were much worse than forecast and add to a string of data showing the world`s biggest economy virtually grinding to a halt this summer.
Read the full article here.
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What will the 'new' real estate market look like?
It is clear to real estate industry insiders that the real estate market as we have known it for the past two decades will be significantly changed in the future. The combination of robo-signing, foreclosure fraud, mortgage-backed securities, and general chaos in the marketplace has already led to significant changes, and a full-blown overhaul of the process is a virtual certainty.
With that in mind, what will this `new` real estate market ` in actuality a heavy revision of the old one ` look like?
Read the full article here.
It is clear to real estate industry insiders that the real estate market as we have known it for the past two decades will be significantly changed in the future. The combination of robo-signing, foreclosure fraud, mortgage-backed securities, and general chaos in the marketplace has already led to significant changes, and a full-blown overhaul of the process is a virtual certainty.
With that in mind, what will this `new` real estate market ` in actuality a heavy revision of the old one ` look like?
Read the full article here.
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U.S. July payrolls rise
WASHINGTON(Reuters) - U.S. job growth accelerated more than expected in July as private employers stepped up hiring, a development that eased fears the economy was sliding into a fresh recession.
Nonfarm payrolls increased 117,000, the Labor Department said on Friday, above market expectations for an 85,000 gain. The unemployment rate dipped to 9.1 percent from 9.2 percent in June, mostly the result of people leaving the labor force.
The payrolls count for May and June was revised to show 56,000 more jobs added than previously reported. The report was the first encouraging piece of economic data in some time.
Read the full article here.
WASHINGTON(Reuters) - U.S. job growth accelerated more than expected in July as private employers stepped up hiring, a development that eased fears the economy was sliding into a fresh recession.
Nonfarm payrolls increased 117,000, the Labor Department said on Friday, above market expectations for an 85,000 gain. The unemployment rate dipped to 9.1 percent from 9.2 percent in June, mostly the result of people leaving the labor force.
The payrolls count for May and June was revised to show 56,000 more jobs added than previously reported. The report was the first encouraging piece of economic data in some time.
Read the full article here.
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U.S. makes modest job gains
WASHINGTON`Hiring picked up slightly in July and the unemployment rate dipped to 9.1 percent.
Employers added 117,000 jobs last month, the Labor Department said Friday. That`s better than the past two months, which were also revised higher.
Still, the economy needs twice as many net jobs per month to rapidly reduce unemployment. The rate has topped 9 percent in every month except two since the recession officially ended in June 2009.
Read the full article here.
WASHINGTON`Hiring picked up slightly in July and the unemployment rate dipped to 9.1 percent.
Employers added 117,000 jobs last month, the Labor Department said Friday. That`s better than the past two months, which were also revised higher.
Still, the economy needs twice as many net jobs per month to rapidly reduce unemployment. The rate has topped 9 percent in every month except two since the recession officially ended in June 2009.
Read the full article here.
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Nation adds 117,000 jobs in July, better than expected, and Wall Street relaxes for now
WASHINGTON - U.S. job market beat expectations and the stock market managed a modest gain ` not great, but good enough after a turbulent week.
America added 117,000 jobs in July, the government said Friday ` far from what happens in a healthy economy, and only good for a reduction of one notch in the unemployment rate, to 9.1 per cent.
But the jobs number beat the forecast of economists, who were expecting no more than 90,000. And it was an overwhelming relief for investors, who just lived through two of the most brutal weeks in Wall Street history.
"Nothing to pop Champagne corks over," said Diane Swonk, chief economist at Mesirow Financial, "but a much-needed shot in the arm for confidence at a time when we have so little."
Read the full article here.
WASHINGTON - U.S. job market beat expectations and the stock market managed a modest gain ` not great, but good enough after a turbulent week.
America added 117,000 jobs in July, the government said Friday ` far from what happens in a healthy economy, and only good for a reduction of one notch in the unemployment rate, to 9.1 per cent.
But the jobs number beat the forecast of economists, who were expecting no more than 90,000. And it was an overwhelming relief for investors, who just lived through two of the most brutal weeks in Wall Street history.
"Nothing to pop Champagne corks over," said Diane Swonk, chief economist at Mesirow Financial, "but a much-needed shot in the arm for confidence at a time when we have so little."
Read the full article here.
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Foreclosures fall for 10th straight month
NEW YORK (CNNMoney) -- Foreclosure filings dropped once again in July, hitting their lowest level since November 2007, as processing delays and foreclosure prevention measures enabled a larger number of delinquent borrowers to remain in their homes.
Filings were down 4% compared to June and were 35% lower than July 2010, marking the tenth straight month of year-over-year declines, according to RealtyTrac, a leading online marketer of foreclosed properties.
RealtyTrac reported that 212,764 U.S. homes received some kind of foreclosure filing -- notice of default, notice of auction sale or completed foreclosure -- during the month. Bank repossessions totaled 67,829, down 33.6% from the peak month of September, 2010 -- when banks took back 102,134 homes, and off 27% from 12 months earlier.
Read the full article here.
NEW YORK (CNNMoney) -- Foreclosure filings dropped once again in July, hitting their lowest level since November 2007, as processing delays and foreclosure prevention measures enabled a larger number of delinquent borrowers to remain in their homes.
Filings were down 4% compared to June and were 35% lower than July 2010, marking the tenth straight month of year-over-year declines, according to RealtyTrac, a leading online marketer of foreclosed properties.
RealtyTrac reported that 212,764 U.S. homes received some kind of foreclosure filing -- notice of default, notice of auction sale or completed foreclosure -- during the month. Bank repossessions totaled 67,829, down 33.6% from the peak month of September, 2010 -- when banks took back 102,134 homes, and off 27% from 12 months earlier.
Read the full article here.
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Growth forecasts for U.S. cut through 2013 on limited job gains
Global financial strains, government fiscal austerity and a lack of jobs will hurt U.S. growth over the next couple of years, according to economists surveyed this month by Bloomberg News.
The world`s largest economy will expand at an average 2.3 percent annual rate in the second half of the year, about a percentage point less than projected last month, according to the median forecast of 53 economists polled from Aug. 2 to Aug. 10. Gross domestic product will grow 2.4 percent next year and 2.8 percent in 2013, also less than previously estimated.
Companies like General Motors Co. are concerned consumers will limit spending as economists foresee the jobless rate averaging at least 8 percent through 2013. Mounting pessimism is one reason Federal Reserve policy makers said this week they are prepared to take additional action to spur the economy.
`We`re on a path that looks like persistent growth, but growth that is inadequate to solving our short-run problems,` said Neal Soss, chief economist at Credit Suisse in New York. `Markets are signaling to businesses and households the future is less certain. When your future appears to be out of control, it`s easier to pull back than it is to get aggressive.`
Read the full article here.
Global financial strains, government fiscal austerity and a lack of jobs will hurt U.S. growth over the next couple of years, according to economists surveyed this month by Bloomberg News.
The world`s largest economy will expand at an average 2.3 percent annual rate in the second half of the year, about a percentage point less than projected last month, according to the median forecast of 53 economists polled from Aug. 2 to Aug. 10. Gross domestic product will grow 2.4 percent next year and 2.8 percent in 2013, also less than previously estimated.
Companies like General Motors Co. are concerned consumers will limit spending as economists foresee the jobless rate averaging at least 8 percent through 2013. Mounting pessimism is one reason Federal Reserve policy makers said this week they are prepared to take additional action to spur the economy.
`We`re on a path that looks like persistent growth, but growth that is inadequate to solving our short-run problems,` said Neal Soss, chief economist at Credit Suisse in New York. `Markets are signaling to businesses and households the future is less certain. When your future appears to be out of control, it`s easier to pull back than it is to get aggressive.`
Read the full article here.
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Home ownership beats renting in 74% of major U.S. cities
Trulia today released its Summer 2011 Rent vs. Buy Index, which compares the cost of buying and renting a two-bedroom apartment, condominium or townhouse in America's 50 largest cities based on population.
Homeownership Affordability Remains High
Based on current market conditions, buying a home is cheaper than renting in 74 percent of major U.S. cities. Meanwhile, it is clearly better to rent in New York, Fort Worth, Omaha, Seattle, San Francisco and Kansas City. In between both sides of the rent versus buy spectrum, there is a grey area. Depending on personal circumstances, such as one's tax bracket, it may make more sense to buy a home in Oakland, Austin, San Jose, Memphis, Boston, Los Angeles and Portland, even though it is still relatively cheaper to rent.
Read the full article here.
Trulia today released its Summer 2011 Rent vs. Buy Index, which compares the cost of buying and renting a two-bedroom apartment, condominium or townhouse in America's 50 largest cities based on population.
Homeownership Affordability Remains High
Based on current market conditions, buying a home is cheaper than renting in 74 percent of major U.S. cities. Meanwhile, it is clearly better to rent in New York, Fort Worth, Omaha, Seattle, San Francisco and Kansas City. In between both sides of the rent versus buy spectrum, there is a grey area. Depending on personal circumstances, such as one's tax bracket, it may make more sense to buy a home in Oakland, Austin, San Jose, Memphis, Boston, Los Angeles and Portland, even though it is still relatively cheaper to rent.
Read the full article here.
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Lack of leadership in United States causes market havoc
Howard Buffett, the father of Warren, was a four-term United States Congressman during the 1940s and 1950s who said a politician could get elected one of two ways - promising to cut taxes or to spend more on people.
In Warren's biography, Snowball, author Alice Schroeder recalled Howard's efforts to get the U.S. to return to the "gold standard" it had abolished in 1933, because after that the U.S. Treasury had printed money freely to finance the New Deal of employment stimulus and then the Second World War.
Wrote Schroeder: "Certain that the government was going to spend the country into ruination, Howard bought a farm back in Nebraska to serve as a refuge for the family when everybody else starved."
Read the full article here.
Howard Buffett, the father of Warren, was a four-term United States Congressman during the 1940s and 1950s who said a politician could get elected one of two ways - promising to cut taxes or to spend more on people.
In Warren's biography, Snowball, author Alice Schroeder recalled Howard's efforts to get the U.S. to return to the "gold standard" it had abolished in 1933, because after that the U.S. Treasury had printed money freely to finance the New Deal of employment stimulus and then the Second World War.
Wrote Schroeder: "Certain that the government was going to spend the country into ruination, Howard bought a farm back in Nebraska to serve as a refuge for the family when everybody else starved."
Read the full article here.
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Recession threat rising in U.S.: Economists
The threat of a new recession is rising in the United States, economists say, as they slash their growth forecasts for the second half of the year.
Slowing global expansion, the plunge in US stock markets after Standard & Poor's cut the country's credit rating, and political pressure on the government to cut spending rather than stimulate growth are all putting the brakes on the world's largest economy, they say.
Mostly negative data ` though with a few bright spots ` has reinforced feelings that the recovery from the 2008-2009 recession is in trouble.
Read the full article here.
The threat of a new recession is rising in the United States, economists say, as they slash their growth forecasts for the second half of the year.
Slowing global expansion, the plunge in US stock markets after Standard & Poor's cut the country's credit rating, and political pressure on the government to cut spending rather than stimulate growth are all putting the brakes on the world's largest economy, they say.
Mostly negative data ` though with a few bright spots ` has reinforced feelings that the recovery from the 2008-2009 recession is in trouble.
Read the full article here.
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U.S. facing growing spectre of a lost decade
What if it were almost free to borrow money ` but nobody dared take out a loan?
Once the swaggering spendthrift of the global economy, the American consumer is now too fearful and debt-burdened to borrow and spend, and doesn`t appear poised to bounce back any time soon.
Signs that the still-struggling U.S. economy is weakening further prompted U.S. Federal Reserve Board chairman Ben Bernanke to announce earlier this week that short-term interest rates will remain at or near zero per cent for two years. That would mean that, by 2013, the Fed`s emergency measures will have been in place for five years.
Read the full article here.
What if it were almost free to borrow money ` but nobody dared take out a loan?
Once the swaggering spendthrift of the global economy, the American consumer is now too fearful and debt-burdened to borrow and spend, and doesn`t appear poised to bounce back any time soon.
Signs that the still-struggling U.S. economy is weakening further prompted U.S. Federal Reserve Board chairman Ben Bernanke to announce earlier this week that short-term interest rates will remain at or near zero per cent for two years. That would mean that, by 2013, the Fed`s emergency measures will have been in place for five years.
Read the full article here.
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U.S. sees stagnant job market, rising inflation
There was some disconcerting economic news out of the U.S. this morning, with job growth stagnating and inflation on the rise.
The number of Americans applying for unemployment benefits crept back above the 400,000 last week, hitting a four-week high of 408,000, according to the Labor Department.
Applications have been above 400,000 for 18 of the past 19 weeks. Applications typically must fall below 375,000 to signal healthy job growth. The last time they were that low was in late February.
Two weeks ago, applications dropped to 399,000. That was the first time they had fallen below 400,000 since early April.
Read the full article here.
There was some disconcerting economic news out of the U.S. this morning, with job growth stagnating and inflation on the rise.
The number of Americans applying for unemployment benefits crept back above the 400,000 last week, hitting a four-week high of 408,000, according to the Labor Department.
Applications have been above 400,000 for 18 of the past 19 weeks. Applications typically must fall below 375,000 to signal healthy job growth. The last time they were that low was in late February.
Two weeks ago, applications dropped to 399,000. That was the first time they had fallen below 400,000 since early April.
Read the full article here.
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More Americans file jobless claims
The number of people applying for unemployment benefits rose back above 400,000 last week. Still, the four-week average, a more reliable gauge of the job market, fell to the lowest level since mid-April.
The report suggests that the economy is creating jobs but not nearly enough to lower the high unemployment rate.
Read the full article here.
The number of people applying for unemployment benefits rose back above 400,000 last week. Still, the four-week average, a more reliable gauge of the job market, fell to the lowest level since mid-April.
The report suggests that the economy is creating jobs but not nearly enough to lower the high unemployment rate.
Read the full article here.
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Homebuyers spooked by stock volatility
Sanjay Jain called his real estate broker four days ago to cancel a deal to buy a three-bedroom home in Folsom, California, unnerved by another plunge in the most volatile equities market on record.
`Seeing what`s happening on the stock market made me think that it`s not a good time to be buying a home,` Jain said. `I`m going to wait and see.`
As the U.S. economy shows signs of sputtering, instability on Wall Street is sapping the confidence of would-be property buyers, said Karl Case, co-founder of the S&P/Case-Shiller home- price index. That means housing, which aided every recovery except one before the most recent recession, may deepen its five-year drag on growth.
Read the full article here.
Sanjay Jain called his real estate broker four days ago to cancel a deal to buy a three-bedroom home in Folsom, California, unnerved by another plunge in the most volatile equities market on record.
`Seeing what`s happening on the stock market made me think that it`s not a good time to be buying a home,` Jain said. `I`m going to wait and see.`
As the U.S. economy shows signs of sputtering, instability on Wall Street is sapping the confidence of would-be property buyers, said Karl Case, co-founder of the S&P/Case-Shiller home- price index. That means housing, which aided every recovery except one before the most recent recession, may deepen its five-year drag on growth.
Read the full article here.
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U.S. new home sales fall again in July
The number of people who bought new homes fell for the fourth straight month in July, putting sales on track to finish this year as the worst on records dating back half a century.
Sales of new homes fell nearly 1 per cent in July to a seasonally adjusted annual rate of 298,000, the Commerce Department said Tuesday. That`s less than half the 700,000 that economists say represent a healthy market.
Read the full article here.
The number of people who bought new homes fell for the fourth straight month in July, putting sales on track to finish this year as the worst on records dating back half a century.
Sales of new homes fell nearly 1 per cent in July to a seasonally adjusted annual rate of 298,000, the Commerce Department said Tuesday. That`s less than half the 700,000 that economists say represent a healthy market.
Read the full article here.