| Economy |
Market News
GDP
The nation's gross domestic product, the broadest measure of the nation's economic activity, grew at an annual rate of 5.9% in the quarter, the Commerce Department reported today.
The numbers show the economy grew at a slightly faster pace than originally thought during the last three months of 2009.
Feb 26 · 10:19:00 AM
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by Larry Etter
Unemployment
New orders for long-lasting U.S. manufactured goods excluding transportation unexpectedly fell in January, while the number of workers filing for jobless benefits rose last week, suggesting a loss of momentum in the pace of economic recovery.
The Commerce Department said on Thursday orders excluding transportation fell 0.6 percent last month after increasing 2.0 percent in December. That was below market expectations for a 1.0 percent rise.
However, overall orders jumped 3.0 percent, the biggest gain since July, as aircraft bookings soared. That was well above market expectations for a 1.5 percent rise. Orders increased 1.9 percent in December.
Separately, initial claims for unemployment benefits rose 22,000 to 496,000 last week, the Labor Department said.
Analysts had expected jobless claims to fall to 455,000.
Feb 25 · 5:10:00 PM · Source: CNBC
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by Michael Oliveto
Housing
Sales of new homes in January fell 11 percent to an annual pace of 309,000, figures from the Commerce Department showed today. The median sales price dropped 2.4 percent from January 2009 and the supply of unsold homes increased.
The dip in new home sales number was unexpected and the number is the lowest level on record, a sign that an extension of a government tax credit may not be enough to respark demand.
Feb 24 · 10:15:00 AM
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by Larry Etter
Housing
U.S. home prices slipped in December but the annual rate of decline slowed, according to Standard & Poor's/Case-Shiller indexes. The S&P composite index of home prices in 20 metropolitan areas dipped 0.2 percent in December, matching the decrease in November. This amounts to a 3.1 percent annual drop.
The numbers reinforce the housing recovery is still rocky.
Feb 23 · 10:09:00 AM
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by Larry Etter
Interest Rates
The Fed said late Thursday it is raising its discount rate by a quarter percentage point, or 25 basis points, to 0.75%. The central bank said in a statement it made the move in response to improving financial market conditions.
Ben Bernanke's Fed is taking a small step toward normal policy.
The move is largely symbolic, because banks do little borrowing at the discount window.
The unanimous decision to boost the discount rate also has no effect on the more widely watched federal funds rate, which measures the rate banks charge each other for overnight loans. That rate is expected to remain between 0% and 0.25% for the foreseeable future, given the slack in the labor market and the still fragile state of the economy.
Feb 19 · 11:05:00 PM · Source: CNN Money
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by Michael Oliveto
CPI
The cost of living in the U.S. rose in January less than anticipated and a measure of prices excluding food and fuel fell for the first time since 1982, indicating the recovery is generating little inflation.
The consumer-price index increased 0.2 percent for a fifth straight month, led by higher fuel cost. However, the Labor Department figures revealed today showed that excluding energy and food, the "core index" unexpectedly fell 0.1 percent, reflecting a drop in new-car prices, clothing and shelter.
The big broader picture shows subdued inflation, giving the Fed to keep rates down for now.
Feb 19 · 2:52:00 PM
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by Larry Etter
Producer Price Index
Wholesale prices shot up at double the expected pace in January, propelled higher by big increases in energy costs. The Labor Department said Thursday that wholesale prices rose 1.4 percent last month, reflecting higher costs for gasoline and other energy products. Private economists had expected a 0.7 percent increase.
The surprisingly big increase was looked at as a temporary blip and not the start of inflation problems, analysts said.
Feb 18 · 10:09:00 AM · Source: AP
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by Larry Etter
Interest Rates
Federal Reserve Chairman Ben Bernanke began Wednesday to outline the central bank's strategy, saying the Fed will likely start to tighten credit by boosting the interest rate it pays banks on money they leave at the central bank.
This strategy would raise rates tied to commercial banks' prime rate and affect many consumer loans. Companies and ordinary Americans would pay more to borrow.
Feb 10 · 11:37:00 AM
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by Larry Etter
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