Economic News

[Fivetears]

Commerce Dept: Consumer Prices Rise 0.2% in June; Core Up 0.3%
Consumer inflation slowed in June, helped by a temporary drop in energy prices. But the improvement was expected to be short-lived with a new crisis in the Middle East pushing crude oil to record highs. The overall increase was in line with expectations although core inflation, which excludes energy and food, rose by 0.3 percent in June, higher than the 0.2 percent Wall Street had been expecting. That increase left core inflation rising for the past three months at an annual rate of 3.6 percent, far above the Federal Reserve comfort zone of 2 percent or less.
http://www.foxnews.com/story/0,2933,204347,00.html?sPage=fnc.business/economy

 

[Fivetears]

Federal Reserve Chairman Ben Bernanke: Record Oil Prices Need Watching
Federal Reserve Chairman Ben Bernanke told Congress on Wednesday that record high oil prices are a concern, but that a slowing economy should moderate inflation down the road. Still, he didn't close the door to further interest rate increases. Delivering his second economic report to Capitol Hill, Bernanke also stressed that these are difficult and uncertain times for Fed policy-makers, saying the climate of slowing growth and rising inflation puts the Fed in a tricky spot in terms of setting interest rates. The economy which grew in the first quarter at a 5.6 percent pace, the fastest spurt in 2 1/2 years, is expected to slow to a pace of around 3 percent or less in the second half of this year.
http://www.foxnews.com/story/0,2933,204358,00.html

 

[Fivetears]

Tower Reaches Tentative Deal With Unions
DETROIT - Auto-parts supplier Tower Automotive Inc. on Wednesday announced it has reached a tentative agreement with its two largest unions, possibly preventing a strike. The preliminary agreement with the United Auto Workers and United Steelworkers of America covers about 2,100 of Tower's 3,000 hourly employees. Terms of the agreement were not released by the company. The deal must be approved by the union membership as well as the U.S. Bankruptcy Court in Manhattan. Tower supplies several auto makers, including Ford Motor Co., General Motors Corp. DaimlerChrysler AG's Chrysler Group, Toyota Motor Co. and Honda Motor Co. Tower's unions had authorized a strike if the company received court approval on a motion to throw out its labor contracts.
http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=AP&Date=20060719&ID=5880423

 

[Fivetears]

Fed chief says inflation expected to fall
The US Federal Reserve expects inflation to retreat from its recent highs, but it could still raise interest rates further to guard against the risk of a costly inflation surprise, Ben Bernanke, the Fed chairman, told Congress on Wednesday. His testimony, which gave stong boost to US and European share prices and Treasury bonds, came as the Fed released forecasts suggesting that it is prepared to bring US inflation down gradually, to minimise the damage to the real economy. The forecasts in the Economic Report to Congress show Fed policymakers are willing to tolerate an inflation rate on its core measure of 2 per cent or slightly above this year and next, providing it is heading in the right direction. The Fed officials think this approach will allow the economy to grow at close to its trend rate over this year and next.
http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=FT&Date=20060719&ID=5880384

 

[Fivetears]

Insurance for 154,000 to Be Canceled
AUSTIN - About 154,000 Texas homeowners must find a new insurance carrier after regulators started shutting down Texas Select Lloyds, the state's sixth-largest home insurer. Texas Select did not have the ability to protect its policyholders and so their policies will be canceled by Aug. 23, according to the Texas Department of Insurance.
http://news.moneycentral.msn.com/ca...879874&topic=TOPIC_ECONOMIC_INDICATORS&iSub=3

 

[Fivetears]

Wisconsin Farmers Talking Drought
WAUSAU - A dreaded word in farm country is starting to be heard in parts of northern Wisconsin -- drought. Little rain, coupled with steamy temperatures and south winds, is "just drying everything right up," said Randy Knapp, University of Wisconsin-Extension farm agent in Chippewa County on the western side of the state. Corn crops are burning up and pastures are brown, already prompting some farmers to sell their cows because of a lack of feed or to use forage stored for use in the winter, Knapp said. The last time conditions were this dry in his area was 1988, Knapp said. "I guess we finally determined that we are in a drought, an official drought." Gov. Jim Doyle on Wednesday issued an executive order declaring a state of emergency because of the drought conditions, making it easier for farmers to apply for temporary irrigation permits from streams and rivers. "Some farmers are experiencing drought conditions at a critical point in the growing season," Doyle said in a statement issued in Madison. "If this continues, farmers could see significant damage to their crops and severe economic losses."
http://news.moneycentral.msn.com/ca...879674&topic=TOPIC_ECONOMIC_INDICATORS&iSub=3

 

[Fivetears]

Parking costs up 10%, survey finds
CHICAGO - If the rising cost of gas isn' t incentive enough to leave the car at home, maybe the increases in parking fees will do the trick. The cost to park in most major U.S. cities increased for the third consecutive year in 2006, according to a survey released on Tuesday by real estate services firm Colliers International. Daily parking is up 10.1% over the year, with the median cost for a space averaging $15.28 in U.S. cities, according to Colliers. The median cost for daily parking is $40 in Midtown Manhattan and $6 in Memphis, Tenn ., according to the study. Monthly unreserved parking spaces rose 4.4% over the year, with the median cost for a space averaging $153.19 per month. Monthly reserved parking spaces ( which guarantee customers the same space every day) also rose: They' re now up 3.8% over the year, with an average cost of $180.68 per month.
http://money.cnn.com/2006/07/19/news/economy/update_parking.dj/index.htm

 

[Fivetears]

Back-to-school spending to leap
NEW YORK - Back-to-school spending will see a big leap this year, with the biggest growth in electronics and apparel purchases, according to a new study. The average family is likely to spend $527.08 this year, up from $443.77 in 2005. Total spending is estimated to reach $17.6 billion, up from $13.4 billion last year, according to the National Retail Federation. Electronics and computer-related purchases are expected to jump by $1.5 billion from last year, after a sharp decline in 2005.
http://money.cnn.com/2006/07/18/news/economy/retail_school/index.htm

 

[Fivetears]

Verizon: Computer overcharged 11,000 customers
WASHINGTON - A computer error in its billing system led Verizon to overcharge some 11,000 customers in the mid-Atlantic region in June, the company announced Wednesday. The programming error led to overcharges ranging from $200 to several thousand dollars for some customers in Washington, D.C., Maryland, Virginia and West Virginia, according to Verizon spokesman Harry Mitchell. The company sends out 5.3 million bills a month in that region. Verizon discovered the error June 26, one week after the problems began. The company said it will credit affected customers in the next billing cycle.
http://money.cnn.com/2006/07/19/technology/verizon/index.htm

 

[FundSurfer]

Didn't you say you were on vacation? I think you need to check yourself into the Betty Ford clinic for internet addiction.

 

[Fivetears]

Yes Sir. But ya gotta admit... these markets are sure exciting to keep up with; even on vacation. AND... 107 degrees is too hot for man and beast. Just figured I'd share my afternoon surfing adventures with all. Hope some find them useful.

Didn't you say you were on vacation? I think you need to check yourself into the Betty Ford clinic for internet addiction.

 

[Fivetears]

Rising rents push up consumer prices in June, but energy prices ease.
Consumer prices rose in June as costs for housing, fruit, airfares and other items more than offset a decline in energy costs, the government said Wednesday in a report that strengthened inflation worries. Housing prices rose 0.4% in June, up 0.3% from May. The CPI measures housing prices based on how much consumers would pay to rent their homes. But rents are increasing while home sales and prices are slowing, leading to a possible distortion in the numbers. Energy prices fell in June for the first time in four months as a decline in prices for gasoline and natural gas more than offset an increase in electricity and heating oil costs. Despite the decline, energy prices are up 22.8% at an annualized pace in 2006. If the trend continues, energy prices will increase this year at the fastest pace since 1979.
http://www.usatoday.com/money/economy/inflation/2006-07-19-cpi-starts_x.htm

 

[Fivetears]

Judge overturns state law requiring Wal-Mart to spend more on heath care.
BALTIMORE — A federal judge on Wednesday overturned a Maryland law that would have required Wal-Mart Stores to spend more on employee health care, arguing the retail giant "faces threatened injury" from the law's spending requirement. The state law would have required large employers to spend at least 8% of payroll on health care or pay the difference in state taxes. Only Wal-Mart would have been affected by Maryland's law. U.S. District Judge J. Frederick Motz concluded that the law would have hurt Wal-Mart by requiring it to track and allocate benefits for its Maryland employees in a different way from how it keeps track of employee benefits in other states. Motz wrote that the law "imposes legally cognizable injury upon Wal-Mart."
http://www.usatoday.com/money/industries/retail/2006-07-19-walmart-healthcare_x.htm

 

[Fivetears]

Retail analysts expect pinched consumers to get stingy.
Higher gas prices. Middle East unrest. Sagging home prices. New federal guidelines that allow credit card companies to increase minimum payments. All may combine to put a damper on consumer spending as retailers enter the crucial back-to-school sales season, analysts say. "People are going to have to stretch their dollars as hard as they can," says Wendy Liebmann of WSL Strategic Retail. "The (stock) market has dropped 400 points, who the heck knows what's going on in the Middle East, and gas just keeps going up, up, up." Monday, Target lowered its forecast for same-store sales growth in July to 3%-4%, compared with a recent forecast of 4%-6%. Last week, Merrill Lynch downgraded Wal-Mart stock to neutral from buy. And Tuesday, A.G. Edwards retail analyst Bob Buchanan downgraded the entire retail group from "even weight" to "underweight." Still, the National Retail Federation said Tuesday that it expects back-to-school spending to increase to $17.6 billion, up from $13.4 billion last year, according to its survey of 9,032 consumers. But Buchanan says same-store sales are "in the process of decelerating." He predicts they'll grow by 1% to 2% year-over-year in July and August, vs. increases of 3% to 4% for the previous five quarters. "If Mommy and Daddy don't feel as flush because their houses aren't worth as much as last year, well they won't be willing to spend as much," he says.
http://www.usatoday.com/money/industries/retail/2006-07-18-retail-usat_x.htm

 

[Fivetears]

Disney confirms staff, movie reductions
Updated 7/19/2006 10:25 AM ET
LOS ANGELES — The Walt Disney is restructuring its studio division to emphasize blockbuster franchise films over more adult fare, a move that will mean slashing 650 jobs worldwide, the company announced Tuesday. The restructuring will cut Disney's film output from about 18 a year to about a dozen. Of those, about 10 will be released under the Walt Disney Pictures banner, a proven family friendly brand that includes the successful Pirates of the Caribbean franchise. Disney's Touchstone label, which is responsible for more esoteric fare by artists like Joel and Ethan Coen of Fargo fame, will be cut back to only two or three releases a year. Recent Touchstone films have included the box-office flops The Alamo and The Ladykillers. The shift, the company explained, will allow Disney films to bolster the resources of other divisions. A hit like Pirates of the Caribbean, for example, can spawn video games, action figures, cable TV shows and, in the case of Pirates, give new life to an old Disney theme park attraction.
http://www.usatoday.com/money/media/2006-07-19-disney-changes_x.htm

 

[Fivetears]

Southwest Airlines 2Q profit more than doubles
DALLAS — Southwest Airlines said Wednesday its second-quarter profit more than doubled, driven by an increase in traffic, higher fares and its use of options to buy fuel at lower prices. Excluding gains from hedging its fuel purchases, the company said, it earned $273 million, or 33 cents per share in the most-recent quarter. Southwest said its jets averaged occupancy rates of 78%, up from 72.5% in the same stretch of 2005. Southwest benefited again from a decision several years ago — when oil was relatively cheap — to buy most of its fuel at set prices, which have turned out to be a bargain. Southwest estimated that this hedging saved it $225 million cash in the second quarter. The airline has options to buy 73% of its fuel for the rest of 2006 at the equivalent of $36 per barrel oil — about half the going rate.
http://www.usatoday.com/money/biztravel/2006-07-19-southwest-profit_x.htm

 

[Fivetears]

US Airways to place ads on air sickness bags
US Airways wants to make the most out of a nauseating situation. The Tempe, Ariz.-based airline plans to sell advertisements on its air-sickness bags — those pint-sized expandable envelopes tucked between the in-flight magazines and safety cards. "They're in every back seat pocket," said US Airways Group Inc. spokesman Phil Gee. "We figure while it's there, why don't we make it multipurpose?" Passengers should see the new, commercialized sickness bags in September, he said. The ads are just the latest initiative the company has used to squeeze out a bigger profit. America West, which combined with US Airways last year, had the first advertisements in the industry on tray tables, the first airline gift cards and the first in-flight meals for sale. "Little things like that work," said Michael Boyd, president of the Boyd Group, an aviation consulting group in Evergreen, Colo. "Barf bags have a lot of shelf life — people aren't barfing as much in planes as they used to."
http://www.usatoday.com/money/biztravel/2006-07-19-bag_advertisements_x.htm

 

[Fivetears]

High Gas Prices Fueling Bike, Moped Sales
With gasoline above $3 a gallon in many parts of the country, fears of continued energy spikes are fueling sales of motorcycles, mopeds, and bicycles, leading bike associations said. Motorists are paying an average of $2.97 for a gallon of regular gasoline at the pump, up 66 cents from last year and less than 10 cents away from the $3.06 record retail price hit in September, September, according to travel and motorist group AAA's survey of 85,000 gas stations. With crude oil prices breaking records near $80 a barrel, motorists could see record pump prices soon, AAA has said. Scooter sales surged 17.5 percent in 2005, climbing 65 percent in the third quarter in top brands such as Suzuki , Honda and Vespa, the MIC said. "The trend is definitely still on the rise, and we're feeling pretty good for this year," van Hooydonk said. The $23.3 billion market for motorcycles and mopeds saw increased sales in the first quarter of this year, with on-highway motorcycle sales up 8.6 percent, and scooters up 2.1 percent.
http://www.foxnews.com/story/0,2933,204154,00.html

 

[Fivetears]

N.J. Businesses Prepare for Sudden Tax Increase
Following a state budget dispute that temporarily shut down the government, New Jersey businesses are now bracing for a tax increase that some say will disrupt their operations and cut into the bottom line. Under the budget deal, the Garden State's sales and use tax rate will increase from 6 percent to 7 percent on July 15. The new legislation also raised the Atlantic City luxury tax from 12 percent to 13 percent, as well as the Cape May County tourism sales tax. Businesses in the Wildwood area will now collect a 2 percent tourism tax combined with the 7 percent sales tax, for a combined rate of 9 percent tax on tourism-related sales. Businesses across the state are expected to feel a crunch, as many had not anticipated such a quick enactment to the sales-tax increase. Initially, the hike was scheduled for Oct. 15, but the date was moved up during budget negotiations.
http://www.foxnews.com/story/0,2933,204149,00.html

 

[Fivetears]

Ford posts quarterly loss
DETROIT - Ford Motor Co., which has been working to slash costs and stem market-share losses, on Thursday posted an unexpected second-quarter loss as sales of large sport utility vehicles slumped on higher U.S. gasoline prices and it took charges for employee buyouts. The No. 2 U.S. automaker cut its third-quarter production target in North America, and Ford Chairman and Chief Executive Bill Ford Jr. said the company will accelerate its turnaround efforts. "Within the next 60 days, we'll be in a position to discuss the additional actions we will be taking," he said in a statement. Ford's restructuring program already includes closing 14 plants and cutting up to 30,000 factory jobs in North America. Some analysts had cautioned that Ford's current turnaround efforts, which hinge on job cuts and plant closings, were too slow-moving to have any real effect on financial results until at least 2007.
http://news.yahoo.com/s/nm/20060720/bs_nm/autos_ford_earns_dc_3