Economic News

[mayday]

Why is the price of gas going down?

Why is the price of gas going down? Could it be that big oil thought that the little guy would just go about his merry way and not change his driving habits or trade in his hoopty for a more efficient vehicle. How does this trickle down and effect big oils bottom line? Anybody have any thoughts about how this will effect the market? US car industry? Salaries?Unemployment? Mayday

 

[Spaf]

Re: Why is the price of gas going down?

We are leaving the summer driving season. The US is very vulnerable to the energy sector, markets, cars, etc. We feel better when we stop hitting ourselves!.........:embarrest:

Why is the price of gas going down? Could it be that big oil thought that the little guy would just go about his merry way and not change his driving habits or trade in his hoopty for a more efficient vehicle. How does this trickle down and effect big oils bottom line? Anybody have any thoughts about how this will effect the market? US car industry? Salaries?Unemployment? Mayday

 

[mayday]

Cheap gas is good for the economy shipping is cheaper. Goods tend to follow. But has the damage been done to the auto industry like FORD GM lay-offs shifts eliminated. What about the cities where these plants are located the people layed off the housing market in those areas. Can it turn around? Is it too late. Or is the damage beyond a fix. I'm wondering if gas prices are in the political arena.Mayday

 

[Spaf]

The small business were hurting by rising transportation costs. Car-makers have to vision fuel efficiency. And, housing was in a mortgage bubble!

The market/economy is like a train. The train is ready, tracks are still clear, but the engineer has a hang-over!

Cheap gas is good for the economy shipping is cheaper. Goods tend to follow. But has the damage been done to the auto industry like FORD GM lay-offs shifts eliminated. What about the cities where these plants are located the people layed off the housing market in those areas. Can it turn around? Is it too late. Or is the damage beyond a fix. I'm wondering if gas prices are in the political arena.Mayday

 

[mayday]

So who stands to gain and who to lose? The oil companies want us to buy a lot of gas. So they drop the price so we can buy a hummer. The goverment wants us to buy a lot of gas so they can pocket the tax. More revenue on 8 miles a gallon. But the average joe is'nt buying the big guzzeler anymore. Big oil loses government loses. US automakers lose Japan wins. The blue-coller worker loses. Tax base in cities with plant lose that cities housing market tanks.What can save us from ourselves?

 

[Birchtree]

Iran is now in the car making business. As a selling point they will be offering to the young and upcoming Jihadist a built in push button models that will on demand blow his young a$$ straight to Allah or Satan. Great marketing potential.

 

[mayday]

Birchtree You got a belly laugh out of me. There is a reason for my rant. I live in Louisville KY. where two Ford plants employing 8900 people currently opporate. The announcement is today that will determine which two plants in the US will shut down. We are on the table and I have friends who are at risk of the pink slip. I do like your sence of humor thou. Mayday

 

[Fivetears]

CPI, output data point to moderating inflation
WASHINGTON - Data released on Friday showed the U.S. economy slowing with inflation in check last month, providing further support for the Federal Reserve to hold interest rates steady when it meets next week. The Labor Department said prices at the consumer level rose a slight 0.2 percent in August. The core rate, excluding often-volatile food and energy costs, also rose 0.2 percent. Another report showed industrial output fell unexpectedly last month for the first time since January, providing fresh evidence of a cooling economy. In addition, a consumer sentiment survey showed moderating inflation expectations ahead of the Fed's policy meeting on Wednesday. The data reinforced expectations in financial markets that the central bank would hold benchmark borrowing costs steady next week and through the end of the year.
http://news.yahoo.com/s/nm/20060915/bs_nm/economy_dc_3

 

[Fivetears]

Stocks surge near 2006 highs after tamer CPI
NEW YORK - Stocks rallied on Friday, with the Dow and the S&P 500 closing near 2006 highs, as investors bet that the Federal Reserve won't raise interest rates next week following tamer August inflation data and the recent drop in crude oil prices. Shares of economic bellwethers such as diversified manufacturers United Technologies Corp. and 3M Co. and aerospace and industrial conglomerate Honeywell International Inc. led the Dow higher on expectations that if the Fed holds rates steady, borrowing costs will fall and underpin economic growth and profits.
http://news.yahoo.com/s/nm/20060915/bs_nm/markets_stocks_dc_31

 

[Fivetears]

Consumer sentiment picks up in September
UMich survey rose to 84.4 vs 82.0 in previous month
The initial September reading of the UMich consumer sentiment index rose to 84.4 from 82.0 in August. Sentiment had picked up in the last part of August as gasoline prices declined. The improvement was larger than expected. Economists were expecting the index to rise to about 83.6, according to a survey conducted by MarketWatch. All of the improvement came in consumers' expectations six months ahead. The expectations index rose to 77.1 from 68.0. This is the highest level since January. The current conditions index fell to 95.7 from 103.8 in August. This is the lowest level since October. Long-term inflation expectations fell. The five-year inflation expectation fell to 2.9% in September from 3.2% in August. In other reports released Friday, the Labor Department said core inflation rose 0.2% in August. The Federal Reserve also released industrial production data for August, which showed a 0.1% decline.
http://www.marketwatch.com/News/Sto...066-4862-BBC0-BAFF5575737E}&siteid=yhoo&dist=

 

[Fivetears]

Economic Calendar for 18 - 21 September
Monday
Sep 18 8:30 AM Current Account
Sep 18 9:00 AM Net Foreign Purchases

Tuesday
Sep 19 8:30 AM Building Permits
Sep 19 8:30 AM Core PPI
Sep 19 8:30 AM Housing Starts
Sep 19 8:30 AM PPI

Wednesday
Sep 20 10:30 AM Crude Inventories
Sep 20 2:15 PM FOMC Policy Statement

Thursday
Sep 21 8:30 AM Initial Claims
Sep 21 10:00 AM Leading Indicators
Sep 21 12:00 PM Philadelphia Fed

Friday
Open

 

[Fivetears]

California jobless rate rises to 4.9 percent
OAKLAND - California's unemployment rate rose slightly in August to 4.9 percent, but the state also added 37,000 non-farm jobs, leading Gov. Arnold Schwarzenegger to boast on Friday that his economic policies are working. The August jobless rate compared with 4.8 percent in July, and 5.2 percent a year earlier, according to the state's Employment Development Department. Despite the monthly rise, unemployment in the most populous U.S. state has steadily fallen since peaking at 6.9 percent in October 2003 --just before Schwarzenegger, a Hollywood superstar, became governor in an unprecedented election that recalled his predecessor midterm.
http://news.yahoo.com/s/nm/20060915/bs_nm/economy_california_dc

 

[Fivetears]

Home Depot Is Hiring 1,000 New Employees As Part of Store Reinvestment Program
ATLANTA - The Home Depot Inc., the nation's largest home improvement store chain, says it is hiring more than 1,000 new employees across the country as part of its latest effort to improve its stores. The Atlanta-based company said in a hiring advisory it issued Monday that it is seeking in particular applicants with specialty, skilled trades and professional contracting backgrounds for full-time and part-time jobs in numerous departments. The hiring is part of Home Depot's plan to invest another $350 million in its stores during the second half of this year, as it tries to improve customer service amid a slowing economy.
http://biz.yahoo.com/ap/060918/home_depot_jobs.html?.v=3

 

[Fivetears]

Current Account Trade Deficit Climbs to 2nd Highest Level in History
WASHINGTON - America's deficit in the broadest measure of foreign trade increased in the spring to the second highest level in history, reflecting a big jump in payments for foreign oil. The Commerce Department reported Monday that the deficit in the current account rose to $218.4 billion in the April-June quarter, an increase of 2.4 percent over the deficit in the first three months of the year. The current account is the broadest measure of foreign trade because it covers not only trade in goods and services but also investment flows between countries. The deficit represents the amount the United States must borrow from foreigners to cover the shortfall between exports and imports.
http://biz.yahoo.com/ap/060918/economy.html?.v=3

 

[Fivetears]

Understanding Economic Data: Current Account
Investors are constantly deluged by releases of new economic data. Although many market commentaries refer to these releases as though they explain why the stock market rose or fell on that particular day, few of them explain what the releases mean in and of themselves. Many professional economists make predictions about what they believe a particular release of economic data will indicate, and journalists point to the fact that a particular number was better or worse than expected as a major factor in the market's movement. New information does give investors guidance in evaluating their strategies, so it makes sense that any new data may move market prices. However, it's important to understand the implications that a set of new economic data has on the overall economy. For instance, today's release of the U.S. current account figures for the second quarter of 2006 will undoubtedly find its way into many news stories. To understand more clearly what the current account figures indicate about the U.S. economy, on the other hand, you have to go beyond the news stories and learn about what the figures themselves mean.
http://biz.yahoo.com/fool/060918/115858576701.html?.v=1

 

[Fivetears]

CEOs see slowing economic growth: survey
BOSTON - High energy prices and interest rates have dimmed U.S. chief executive officers' view of the economy, according to a quarterly survey released by the Business Roundtable on Monday. The survey found that top CEO's expectations for economic growth over the next six months have dipped to their lowest level in three years. Its CEO Economic Outlook Index dropped sharply to 82.4 in September from the second-quarter reading of 98.6, for a second consecutive quarterly decline. The survey pool includes Roundtable members -- CEOs from large U.S. companies. Any number higher than 50 indicates economic expansion.
http://news.yahoo.com/s/nm/20060918/bs_nm/economy_businessroundtable_dc_3

 

[Fivetears]

Costly oil pushes up US deficit
Record oil import costs have pushed the US current account deficit to $218.4 billion in the second quarter, a 2.4% increase on the previous period. The deficit is the broadest measure of US global trade, including investment flows and trade in goods and services. With world oil prices above $70 a barrel for much of this year, the cost of buying oil pushed import values up 2% to $463.4bn between April and June. The deficit is equivalent to 6% of total US economic output.
http://news.bbc.co.uk/2/hi/business/5356942.stm

 

[Fivetears]

Lower gas prices may jump-start economy, force Fed to raise rates
WASHINGTON — The recent, sharp decline in gasoline prices may help consumers, but it also may stoke inflationary fires, perhaps forcing the Federal Reserve to raise interest rates again later this year, according to some economists, such as those at Merrill Lynch and the Bank of Tokyo-Mitsubishi. The argument: If consumers spend the cash in their wallets left over after filling up their gas tanks, the economy may speed up and businesses will have greater power to raise prices. That could lead to higher inflation — not lower as some may expect — and renewed action from the Fed.
http://www.usatoday.com/money/economy/fed/rates/2006-09-18-gas-fed_x.htm?csp=N008

 

[Fivetears]

Housing construction down 6 pct. in Aug.
WASHINGTON - Housing construction plunged in August, falling to the lowest level in more than three years as the once-booming industry showed further signs of a dramatic slowdown. The Commerce Department reported Tuesday that construction of new homes and apartments fell by 6 percent, the third consecutive decline and a much bigger setback than analysts had been forecasting.
http://news.yahoo.com/s/ap/20060919/ap_on_bi_go_ec_fi/economy

 

[Fivetears]

Economists wary of falling energy prices
WASHINGTON - It should only be this simple: Oil prices plunge 20 percent, leading businesses and consumers to ramp up their spending, which gives a nice jolt to the economy. That seems to be the conventional wisdom on Wall Street right now, where the pullback in energy prices is being cheered by investors. But some contrarians think that view could be missing the point. While the decline in prices will provide some relief to motorists, it also reflects the country's weakening economic outlook. In other words, any benefit from falling pump prices may be outweighed by higher interest rates and a stagnating real-estate market.
http://news.yahoo.com/s/ap/20060919/ap_on_bi_ge/energy_economy