Stories related to: recession

Retail sales rose significantly more than expected in September. Analysts attribute the surge, announced today, to more jobs and better wages. Coming in the wake of gloomy numbers the big chains released yesterday, it should quiet fears of a recession. "You can't have a recession if consumers are continuing to spend," one economist told Reuters. More »

The wealthiest 1% of Americans hit a 21.1% record share of the nation's income, according to IRS figures released yesterday. While the data don't point to a specific cause, the Journal cites the heretofore booming stock market. The previous peak of 20.8% was in 2000, also at the height of a stock bubble, and academics speculate similar conditions prevailed in the 1920s. More »

The Dow and the S&P each set intraday records after today’s unexpectedly good jobs news, and the Nasdaq hit a 7-year high. The Dow closed at 14,066.01, up 91.70 points, and the S&P climbed 14.75 to 1,557.59 after indications that a full-on recession would be avoided. The Nasdaq finished at 2,780.32, up 46.75. More »

The stock market held steady today, as neither a drop in factory orders nor a rise in unemployment claims rattled investors bracing for tomorrow’s crucial jobs report—which could help spur the Fed’s next interest rate move. The Dow was up 6.26 points to 13,974.31, as financial, telecom and health care rose, while technology and energy fell, MarketWatch reports. The Nasdaq climbed 4.14 to 2,733.57 and the S&P gained 3.25 to 1,542.84. More »

American consumers might need to be talked off some ledges, judging from consumer confidence numbers out today, which indicate continuing worry over employment and stock market unrest. The crucial figure—99.8, compared to 105.6 in August—is the lowest since 2005, the Conference Board says. Economists had expected it to fall, but only to about 104, a Reuters poll showed. More »

President Bush and Congress scored record-low approval ratings in a Reuters/Zogby poll released today. Bush dipped 1% below his previous Zogby approval rating of 30%; the legislative branch scored 11% approval, down 3% in August. And a new "mood index" showed the country as more unhappy than in July, with 62% saying the US is on the wrong track. More »

Asian stocks rebounded after the US Federal Reserve announced a half point cut in its key lending rate in a bid to bolster growth and avoid a consumer spending slowdown. Toyota, Samsung Electronics and Honda, among those companies with the most to lose from a loss of consumer confidence, led the gains, reports Bloomberg. More »

Eye-popping job numbers rippled through Wall Street yesterday, but analysts pooh-pooh recession fears as premature. “I think it is important we take a deep breath before screaming ‘A recession is now around the corner!’” one expert says. Four thousand lost jobs may be the worst depletion in 4 years, but leave out government hiring and jobs were actually increased last month. More »

Panic over the state of the US economy pushed the dollar to a 15-year low against major currencies yesterday. The drop came on larger-than-expected July payroll declines, data one analyst called “simply horrific.” Many fear that the credit crunch will drive down consumer spending, igniting a recession. Investors accordingly increased bets that the Fed will drop rates, Reuters reports. More »

The Dow lost more than 1.5% of its value, or 249.97 points, to close at 13133.38 after a devastating report showed that 4,000 jobs were lost in August, the first increase in unemployment in four years. Wall Street had anticipated job growth, and the numbers prompted concerns that the credit crunch is bleeding into the larger economy. More »

In the first drop since 2003, the US lost 4,000 jobs in August, surprising experts and putting more pressure on the Fed to reduce rates at its upcoming meeting. Economists had predicted an increase of 100,000 or more jobs. The decline in employment is the clearest signal to date that the housing recession and credit crunch are hurting the broader economy, Bloomberg reports. More »

Mortgage woes could spark a serious recession, a prominent economist said yesterday. National Bureau of Economic Research President Martin Feldstein said that interest rates must be slashed heavily and quickly, or declining prices and weakening home equity withdrawal could hobble the economy, Reuters reports. More »

President Bush will announce a rescue package for homeowners with subprime mortgages faced with foreclosure. The package will include a call for Congress to give the Federal Housing Administration more power to help borrowers keep their homes—and stricter enforcement of laws against predatory lending, Reuters reports. More »

The Dow closed at 13,378.87 today, up 142.99 on strong durable goods orders and a better-than-expected home sales forecast. The S&P 500 jumped 16.87 to 1,479.37, and the Nasdaq rose 34.99 to 2,576.69. Nucor Corp., the second-largest American steel manufacturer, spearheaded the rally with a 7% gain following a favorable report from Merrill Lynch. More »

The current turmoil in the financial markets will take its toll on the economy, but  won't cause a recession, Treasury Secretary Henry Paulson tells the Wall Street Journal in his first interview since the downturn began. Paulson says the crisis comes in the context of a very strong global economy—the strongest he's seen in his 32-year Wall Street career, he says—and that should insure continuing, if slowed, growth. More »

The Federal Reserve is facing a dilemma as it decides whether to ride to the rescue of  the market by slashing interest rates—and risk encouraging further recklessness and triggering an even worse crisis, reports the Wall Street Journal . The issue is what economists call moral hazard: protecting someone too well from consequences can encourage even riskier behavior. More »

Sales of existing homes dropped in June to a 5-year low because of rising mortgage rates and stricter lending standards. Home resales dipped 3.8% from a 5.98 million annual rate in May to a 5.75 million rate now. "The housing recession looks far from over," an economist tells the Wall Street Journal. More »

Demand for grain for biofuels like ethanol is spurring global food shortages and sending prices soaring—and could trigger a recession, warns the Wall Street Journal. Food prices are already skyrocketing in economies as diverse as India, China, Germany, the U.K., and South Africa. American consumers are likely to see higher prices for everything from milk to cereal to chicken soon. More »

With inflation creeping up, Fed chairman Ben Bernanke will keep interest rates steady—at least for now, reports the Wall Street Journal. Soft business investment and weakening housing are becoming serious risks, but the long-term outlook is good, Bernanke told Congress yesterday. "The current stance of monetary policy is likely to foster sustainable economic growth and a gradual ebbing in core inflation." More »

Back when bankers and investors hung on his every word, Alan Greenspan was caution itself in public pronouncements . But yesterday the former chairman  took the rare step of predicting the onset of an out-and-out recession. Speaking via satellite to a business conference in Hong Kong, Greenspan said the US. economy has been expanding since 2001, and that the current slow down is probably not a temporary lag but the end of a cycle.                 More »