Economic News

[Fivetears]

Household wealth up, debt growth slows
WASHINGTON - The net wealth of U.S. households rose in the second quarter but domestic debt grew at the slowest pace since the first quarter of 2002 as household mortgage and business debt growth moderated, the Federal Reserve said.
http://news.yahoo.com/s/nm/20060919/bs_nm/economy_wealth_dc

 

[Fivetears]

Dismal Philly Fed survey darkens economic view
NEW YORK - A surprise drop in regional factory activity reported on Thursday suggested that the U.S. economy may be losing momentum faster than most economists anticipated, stunning financial markets on the view that the Federal Reserve may soon have to cut interest rates to avoid a downturn. The sluggishness was also seen in a forward-looking economic gauge released early in the day, which hit its lowest level in nearly a year, sending fears of an economic slowdown through financial markets. In the regional factory report, the Philadelphia Federal Reserve Bank said its business activity index tumbled to -0.4 in September from 18.5 in August, far below Wall Street economists' consensus forecast for a reading of 14.8. It was the first time the index had fallen below zero since April 2003. When the index turns negative, it means manufacturing is declining.
http://news.yahoo.com/s/nm/20060921/bs_nm/economy_dc_5

 

[Pilgrim]

From Marketwatch late this morning:

http://www.marketwatch.com/news/story/story.aspx?guid={41E5E86A-D270-45E1-B576-9E6B9B8EDBEE}

"The bond market is screaming that the economic slowdown will be a lot worse than a soft landing," said Barry Hyman, equity market strategist at EKN Financial Services.
"If the slowdown turns out worse than expected, Hyman said, corporate earnings would be negatively impacted."

I love understatement, it is always the best way to make a point. "negatively impacted"?? I suppose it will be that and then some.

 

[Fivetears]

Stocks fall on economic worries, but H-P up late
NEW YORK - Stocks fell on Friday as investors worried that the economy will slow more sharply than expected, prompting them to sell shares of big industrial companies such as heavy equipment maker Caterpillar Inc. Among the top negative influences on the Dow were large manufacturers Caterpillar and Honeywell International Inc. The anxiety triggered by the Philadelphia Federal Reserve Bank report on Thursday, which showed surprising weakness in the mid-Atlantic region's factory activity, increased investors' concerns about the health of the economy and corporate profits. After the close, Hewlett-Packard Co said Chairman Patricia Dunn has resigned, effective immediately, and its stock rose 1 percent to $35.46 in electronic trading.
http://news.yahoo.com/s/nm/20060922/bs_nm/markets_stocks_dc_65

 

[Fivetears]

Dow ends down 25 on economic pessimism.
The market was caught off guard Thursday by a report from the Federal Reserve Bank of Philadelphia that showed regional manufacturing activity fell to a negative reading for the first time in more than three years. Prior to the manufacturing data, the Dow Jones industrial average had been within 100 points of its January 2000 high of 11,722.98 following the Fed's widely expected decision on short-term interest rates. "I think the markets are all of a sudden worried about slower growth," said Dean Junkans, chief investment officer for Wells Fargo Private Client Services. "I wouldn't put as much emphasis on one number as the market seems to have done in the last couple days," he said, referring to the Philadelphia Fed figure.
http://news.yahoo.com/s/ap/20060922...QrDekeyBhIF;_ylu=X3oDMTA2Z2szazkxBHNlYwN0bQ--

 

[Fivetears]

Treasuries rise amid US growth fears.
US Treasuries rallied on Friday for a second consecutive session and yields fell to fresh six-month low points on evidence that a slowdown in the US economy was gathering pace. A dramatic fall in an important regional sentiment survey published on Thursday prompted investors to buy bonds amid heightened expectations that the US Federal Reserve could begin cutting interest rates early next year.
http://news.yahoo.com/s/ft/20060922...idmCsE2KoiyBhIF;_ylu=X3oDMTA0cDJlYmhvBHNlYwM-

 

[Fivetears]

Home sales edge down, prices drop
WASHINGTON - The pace of existing home sales in the United States fell for a fifth straight month in August and prices dropped from year-ago levels for the first time in 11 years, a U.S. realtors group said on Monday. Still, some economists said they saw signs the housing market was beginning to stabilize as the decline in sales showed some signs of leveling off. The National Association of Realtors said existing homes sales slipped to an annual rate of 6.30 million units from 6.33 million in July.
http://news.yahoo.com/s/nm/20060925/bs_nm/economy_homes_dc_7

 

[Fivetears]

Fed's Fisher says economy solid, wary on prices
MONTERREY, Mexico (Reuters) - A top U.S. Federal Reserve official said on Monday the economy is doing well but inflation remains a concern, in remarks that challenge views the central bank will cut interest rates early next year. "Inflation remains elevated and leaves us small choice but to remain vigilant," Federal Reserve Bank of Dallas President Richard Fisher told a pubic forum here, hosted jointly by his institution and the Banco de Mexico. "It is my considered judgment that the recent tempering of U.S. economic growth to a more sustainable rate, combined with the lagged effects of our 17 prior quarter-(percentage-)point rate increases, should act to lower the inflation rate over time. However, if this proves not to be the case, appropriate action will have to be taken," he said. Fisher is not a voting member of the Fed's policy-setting committee this year or next.
http://news.yahoo.com/s/nm/20060925...xo8WHQIpaOyBhIF;_ylu=X3oDMTA0cDJlYmhvBHNlYwM-

 

[Fivetears]

Dow ends up 68 on Fed official's remarks
NEW YORK - Stocks rose smartly Monday after Dallas Federal Reserve President Richard Fisher suggested inflation would be dampened by a slowing economy and said that while the housing and auto sectors are economic weak points, the rest of the U.S. economy is doing "extremely well."
http://news.yahoo.com/s/ap/20060925...tTN7_WyBhIF;_ylu=X3oDMTA2Z2szazkxBHNlYwN0bQ--

 

[Fivetears]

Construction job market's still robust
WASHINGTON — Though new-home sales have plummeted 20% from a year ago, U.S. construction employment is still up 3%. But the solid jobs news might not last. More than 7.52 million U.S. workers were employed in construction in August on a seasonally adjusted basis, up from 7.31 million in August 2005 and 7.46 million in January, according to the Labor Department. Construction employment is a million above 1999. The job market is being supported, in part, by a surge in commercial and public works projects. But residential construction hiring also rose in July and August. The national numbers obscure regional differences. In California, where the housing market is slowing, construction employment slid by about 4,000 in August. Still, in Arizona, where the housing market is also cooling, employment is up.
http://www.usatoday.com/money/economy/employment/2006-09-24-jobs-usat_x.htm?csp=N009

 

[Fivetears]

Existing-Homes Sales Data Show Welcome Correction or Burst Bubble?
Sales of previously owned homes in the U.S. fell less than expected in August to a 6.30 million annual rate, a 0.5% decrease from July's unrevised 6.33 million annual pace, as prices fell compared with a year earlier, the National Association of Realtors said. The median home price was $225,000 in August, compared with a revised $230,000 in July. Last month marked the first year-to-year median price decline since April 1995, and it was the second biggest in the survey's 38-year history. Inventories of unsold homes rose to 3.92 million, a 7.5-month supply at the August sales pace, the most since April 1993. Economists weigh in on whether the housing slowdown is coming to a close or just beginning.
http://online.wsj.com/public/articl...K_7ekWY5fM_20070925.html?mod=tff_main_tff_top

 

[Fivetears]

Economic Mythology
There's an enduring modern myth among investors that the economy is about to collapse because consumers are going to stop spending. Like all myths, this one starts with a grain or two of truth, and then embellishes that grain until it's a preposterous mountain. These mythical mountains are dangerous only if you believe them.
http://foxnews.smartmoney.com/aheadofthecurve/index.cfm?story=20060922

 

[Fivetears]

Economic Calendar for 25 - 29 September

Monday
Sep 25 10:00 AM Existing Home Sales

Tuesday
Sep 26 10:00 AM Consumer Confidence

Wednesday
Sep 27 8:30 AM Durable Orders
Sep 27 10:00 AM New Home Sales
Sep 27 10:30 AM Crude Inventories

Thursday
Sep 28 8:30 AM Chain Deflator-Final
Sep 28 8:30 AM GDP-Final
Sep 28 8:30 AM Initial Claims
Sep 28 10:00 AM Help-Wanted Index

Friday
Sep 29 8:30 AM Personal Income
Sep 29 8:30 AM Personal Spending
Sep 29 9:50 AM Mich Sentiment-Rev.
Sep 29 10:00 AM Chicago PMI

 

[Fivetears]

Survey Says U.S. Down in Competitiveness
GENEVA - U.S. economic competitiveness fell significantly over the last year, as high budget and trade deficits hurt America's business environment, according to a survey released Tuesday by the World Economic Forum. The disappointing response to Hurricane Katrina, government corruption and a decreasing talent pool for employment due to immigration restrictions were other factors cited by the forum, which moved the United States to sixth in its "global competitiveness index" from the top spot a year ago.
http://biz.yahoo.com/ap/060926/global_economic_competitiveness.html?.v=4

 

[Fivetears]

Consumer Confidence Higher Than Expected
NEW YORK - Falling gasoline prices helped brighten the mood of American shoppers in September, sending a gauge of consumer sentiment higher than analysts expected. The New York-based Conference Board said Tuesday that its consumer confidence index rose to 104.5 from a revised reading of 100.2. in August. Analysts had expected the index to rise to 103. The reading, the highest since July's 107, followed a big dip in August, when employment worries dragged down consumer sentiment. The private research group's Present Situation Index, which measures how shoppers feel now about economic conditions, rose to 127.7 from 123.9. Its Expectations Index, which measures consumers' outlook over the next six months, rose to 89.0 from 84.4 last month.
http://biz.yahoo.com/ap/060926/economy.html?.v=10

 

[Fivetears]

New worry: A hard 'soft landing'
NEW YORK - Economists agree: It's time to shut off electronic devices, put up tray tables and return your seat to an upright position. And some say it might not be a bad idea to put your head down between your legs. The economy is coming in for a landing. Optimists say it will be the much sought after "soft landing" when the economy slows but doesn't skid into recession. But some economists now are forecasting a bumpy landing, or even worse. The risk of an outright recession is rising due to the sharp slowdown in the housing market and a downturn in auto sales - two key sectors that may already be in recession themselves. Thursday's government report on gross domestic product, the broadest measure of the economy, showed growth slowed to a 2.6 percent rate in the second quarter, down from the 2.9 percent rate estimated a month ago and 5.6 percent in the first quarter. More weakness in housing, coupled with reduced corporate profits, especially for smaller businesses, were the key reasons for the downward revision. But the lower GDP reading isn't the only sign the economy is facing tougher times ahead.
http://money.cnn.com/2006/09/28/news/economy/bumpy_landing/index.htm

 

[Fivetears]

GDP softens in second quarter
WASHINGTON - Pace of U.S. economic growth falls short of expectations to revised annual rate of 2.6%, hurt by weakened corporate profits. A cooling housing market helped slow GDP growth in the second quarter more than earlier estimated, the government reported on Thursday, and may curb economic expansion for the rest of the year. With November congressional elections on the horizon, a top White House official played down worry about a lasting broad-based economic slowdown. However, some analysts said weaker home sales, prices and building cast a shadow over longer-term prospects.
http://money.cnn.com/2006/09/28/news/economy/gdp.reut/index.htm

 

[Fivetears]

Economic Calendar for 02 - 06 October

Monday
Oct 2 10:00 AM Construction Spending
Oct 2 10:00 AM ISM Index

Tuesday
Oct 3 12:00 AM Auto Sales
Oct 3 12:00 AM Truck Sales

Wednesday
Oct 4 10:00 AM Factory Orders
Oct 4 10:00 AM ISM Services
Oct 4 10:30 AM Crude Inventories

Thursday
Oct 5 8:30 AM Initial Jobless Claims

Friday
Oct 6 8:30 AM Average Workweek
Oct 6 8:30 AM Hourly Earnings
Oct 6 8:30 AM Nonfarm Payrolls
Oct 6 8:30 AM Unemployment Rate
Oct 6 3:00 PM Consumer Credit

 

[Show-me]

AP
Bernanke: Baby Boomers Will Strain U.S.
Wednesday October 4, 7:34 pm ET
By Jeannine Aversa, AP Economics Writer Fed Chairman Ben Bernanke: Baby Boomers Retirement Will Place Massive Strains on U.S.
WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke said Wednesday the burden from retiring baby boomers will strain the nation's budget and economy, unless Social Security and Medicare are revamped.

"Reform of our unsustainable entitlement programs" should be a priority, Bernanke told the Washington Economic Club. "The imperative to undertake reform earlier rather than later is great."
It was his strongest warning yet about the potential perils and tough decisions that will confront the United States with the looming retirement of 78 million baby boomers. Bernanke did not recommend any specific changes, however, that Congress and the Bush administration could make to entitlement programs.

http://biz.yahoo.com/ap/061004/bernanke.html?.v=17

 

[nnuut]

OK, now they are going to cop-out on the obligations they have made to us Baby Bloomers, after we made so much money for the country? MY Butt! Sorry for the language, i'm a Moderator ya know!