Existing-home sales in the Chicago area sunk 35.9 percent in October from a year ago, and median home prices continue to lose ground, according to data released Tuesday. Get the full story »
Filed under: Economy
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3Q GDP revised upward to 2.5%
The U.S. economy grew faster than previously estimated in the third quarter, government data showed on Tuesday, but still not enough to address stubbornly high unemployment. Gross domestic product growth was revised up to an annualized rate of 2.5 percent from 2.0 percent as exports, and consumer and government spending were stronger than initially thought, the Commerce Department said in its second estimate. Get the full story »
Banks seen pruning branches to stay profitable
U.S. banks’ declining profits and tighter profit margins will push them to close 5,000 branches nationwide within the next 18 months, bank analyst Meredith Whitney said in a research note Monday.
Whitney, CEO of Meredith Whitney Advisory Group LLC, said that reduced consumer and corporate appetite to borrow, mixed with new regulations, have changed what was once a key source of industry profits. Get the full story »
Irish bailout makes stocks fear more upheaval
Stocks were lower Monday at the start a holiday-shortened week, as news of progress on Ireland’s rescue package underscored concerns about other troubled European economies.
The Dow Jones industrial average fell 76 points, or 0.7 percent, about 2-1/2 hours into trade. The S&P 500 lost 7 points, or 0.6 percent, and the Nasdaq ticked down 1 point, or less than 0.1 percent. Get the full story »
Mitch McConnell says he won’t back spending bill
Senator Mitch McConnell at a news conference on Capitol Hill, Nov. 16, 2010. (Mark Wilson/Getty Images)
Prospects for a comprehensive bill to fund the U.S. government appeared to dim Thursday after Senate Republican leader Mitch McConnell said he would not support the measure.
McConnell’s statement could indicate waning Republican support for a bill that would fund everything from national parks to the military through September 2011.
That could force Democrats to fund government operations on a temporary basis, either for a few months or the rest of the fiscal year, an approach that makes it difficult for government agencies to launch new programs or close out old ones. Get the full story »
Nov. 18, 2010 at 11:11 a.m.
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Filed under: Economy, Jobs/employment, Layoffs, Manufacturing, Policy, Politics, Updated U.S. factory, job data show some economic strength
In this Sept. 20, 2010 photograph, people attend a job fair at a hotel in Boston. (AP Photo/Stephan Savoia)
New U.S. claims for jobless benefits barely rose last week and manufacturing activity in the country’s Mid-Atlantic region touched a near one-year high in November, more proof the economy was regaining momentum.
The improving economic picture also was enhanced by another report on Thursday showing a gauge of future activity increased 0.5 percent in October.
However, the data are not robust enough to deter the Federal Reserve from fully implementing its much criticized program to purchase $600 billion worth of government debt to push already low interest rates down to stimulate the economy. Get the full story »
Lawmakers hit banks, regulators on foreclosures
Lawmakers pressed major banks and federal regulators on Thursday to explain how they allowed faulty paperwork problems to fester into a controversy that could slow home sales and raise costs for new borrowers. Get the full story »
OECD sees global recovery slowing as U.S. lags
The global economic recovery is losing steam in the face of a slowing U.S. rebound and tensions over currencies, and a debt crisis in Europe could trigger more weakness next year, the OECD said on Thursday. Get the full story »
Ill. lawmakers take new look at gambling expansion
Illinois lawmakers are taking a new look at expanded gambling as a way to reduce the state’s massive budget deficit.
Lawmakers have talked for years about adding new casinos or putting slot machines at racetracks, but the proposals have always fallen apart. They’re getting more serious attention now, with the state facing a roughly $15 billion deficit. Get the full story »
BofA to return $500M of seized Lehman deposits
Bank of America was ordered by a U.S. judge to return $500 million of deposits it seized from Lehman Brothers Holdings shortly after Lehman’s bankruptcy. Get the full story »
Bernanke briefs senators on bond buying
Federal Reserve Chairman Ben Bernanke was briefing members of the Senate Banking Committee late Wednesday morning on the central bank’s controversial bond-buying plan, congressional aides said.
The U.S. central bank’s early November decision to launch a second round of large-scale asset purchases has led to a political backlash from Republicans who argue it is setting the ground for inflation and debasing the dollar. Get the full story »
Consumer prices up on higher gas costs
Consumer prices rose moderately in October but there was little sign of inflation as the cost of autos, clothing and hotels fell. Gasoline prices accounted for most of the increase, rising by 4.6 percent in October, the biggest gain since July.
The Labor Department said Wednesday the Consumer Price Index rose by 0.2 percent last month, an increase from September’s 0.1 percent rise. Wall Street analysts had expected a slightly larger increase. It was the fourth straight rise.
Evans, other Fed officials react to bonds criticism
Federal Reserve officials, taken aback by stinging criticism of their decision to print money and buy $600 billion in Treasury bonds, are counterpunching to defend themselves and, in some cases, to reinforce their commitment to the policy.
Charles Evans, president of the Federal Reserve Bank of Chicago and a strong supporter of the Fed’s easing policy, noted in an interview with The Wall Street Journal that the weak economy and low inflation warrants the Fed’s policy and that more such purchases might be needed in the months ahead if the economic outlook doesn’t turn.
“I would continue to want to apply accommodative monetary policy until I had some confidence that that situation was changing,” Evans said, noting that $600 billion is a “good place to start” the easing program. Get the full story »
Wal-Mart profit up despite sales decline
Wal-Mart Stores Inc. reported a 9.3 percent increase in third-quarter net income as the world’s largest retailer benefited from cost controls and a robust international business. The company also raised its full-year profit outlook.
The improvements come despite weakness at its U.S. business. Total revenue at U.S. Walmart stores fell as fewer customers visited and spent less when they did. Revenue at stores open at least a year also fell, for the sixth quarter in a row, underscoring the challenges of its U.S. business as many customers struggle economically.
