Economy - writings in English

anchi22 · **•• 20:01 ••**

Stocks get hammered

NEW YORK (CNNMoney.com) -- Stocks trimmed losses by the close Thursday, but remained deep in the red, with techs falling after cautious outlooks from Qualcomm and Motorola. Ongoing worries about the labor market also gave investors a reason to retreat.

The Dow Jones industrial average (INDU) lost 115 points, or 1.1%, according to early tallies. The S&P 500 index (SPX) fell 13 points, or 1.2%. The Nasdaq composite (COMP) lost 42 points, or 1.9%. The Dow & S&P 500 closed at nearly three-month lows and the Nasdaq closed at a 2-month low.

Stock declines were broad based, with 24 of 30 Dow components falling, led by IBM (IBM, Fortune 500), Hewlett-Packard (HPQ, Fortune 500), Microsoft (MSFT, Fortune 500), McDonald's (MCD, Fortune 500), 3M (MMM, Fortune 500) and Caterpillar (CAT, Fortune 500).

"I think there is a sense that the economic recovery will take longer than had been anticipated and that the stock market got a little ahead of itself," said Doreen Mogavero, CEO at Mogavero Lee & Co. and an NYSE floor trader.

The S&P 500 rallied 23% last year and gained 65% since the March 2009 bottom. So far, in 2010, the S&P 500 has lost just short of 3%, as of Thursday's close.

Stocks may be in for more selling in the short run. "I think for the next few months, you're going to see not necessarily a down market, but a consolidating market," Mogavero said.

Weaker-than-expected economic readings on durable goods orders and unemployment were also in play Thursday, overshadowing President Obama's push for jobs. Ford Motor's first annual profit in 4 years and other positive profit news were mostly ignored.

Later in the day, Fed Chairman Ben Bernanke was confirmed for a second term after heavy lobbying by Democrats and the Obama administration.

Worries that Bernanke's term might not be renewed were among the factors that roiled markets last week. But concerns about the Obama administration's plans to impose greater regulations on banks and China's lending curbs really drove the selling, sending the major gauges down 5% in three session.

Tech stocks tumble: Technology in particular had a rough session Thursday, with telecom and semiconductors leading the decline.

"Tech is getting smashed and that's spread to the rest of the market," said Dave Rovelli, managing director of U.S. equity trading at Canaccord Adams.

He said that a weak outlook from Qualcomm was dragging on semiconductors and, by extension, the broad technology sector. Motorola also gave a weak outlook, adding to the selling pressure.

In addition, the Nasdaq's run over the last year has outpaced that of the other major indexes and investors may be looking to cash out, particularly amid broader worries about the economy and banking sector.

"There's been a huge run-up in the market, people are worried about the deficit and unemployment and so they want to take some profits," Rovelli said.
Time for Tim Geithner to go

Qualcomm and Motorola: Qualcomm (QCOM, Fortune 500), a maker of chips and other gear used in mobile phones, warned late Wednesday that a more mild outlook for the economy this year has caused it to cut back expectations.

The company cut its earnings and revenue outlook for the current quarter and the forecast overshadowed its better-than-expected fourth-quarter results. Shares fell 14% in heavy trading.

A number of chip and telecom shares fell in response, with the Philadelphia Semiconductor index, or the SOX (SOX), falling 3.9%.

Motorola (MOT, Fortune 500) warned Thursday that it expected to post a loss in the current quarter as it spends more to launch new smartphones. The telecom also reported a better-than-expected fourth-quarter profit that reversed a year-ago loss and stronger smartphone shipments than expected. But investors focused on the outlook, sending the stock down by about 11%.

Obama: In his State of the Union Address Wednesday night, the president said that boosting employment is his administration's "No. 1 focus in 2010" and that he was calling for a new jobs bill.

He said the administration will work on beefing up hiring in the short term and creating sustainable jobs that grow wages in the longer term.

Economy: The number of Americans filing new claims for unemployment fell to 470,000 last week, down from a revised 478,000 the previous week. Economists surveyed by Briefing.com thought claims would fall to 450,000.

Continuing claims, a measure of individuals who have been receiving benefits for a week or more, fell to 4,602,000 from 4,659,000 the previous week versus expectations for 4,593,000 claims.

A separate report showed that December durable goods orders, a measure of manufacturing, rose 0.3% after falling 0.4% in the previous month. Economists expected orders to rise 2%.

Ford Motor: The automaker reported its first profitable year since 2005 and said it expects to make money again in 2010. The company earned $2.7 billion in 2009, or 86 cents per share, easily surpassing analysts' expectations that it would post a loss of 31 cents per share.

In the fourth quarter, Ford (F, Fortune 500) said it earned 43 cents a share, trouncing estimates and marking a big turnaround from the $1.40 per share loss it reported in fourth-quarter 2008.

After a brutal 2008, the broad auto sector has been recovering this year. However, Ford's recovery has outpaced rivals. The company said it benefited from increased market share in the United States and Europe, a pickup in auto sales and cost cutting.

Quarterly results: Three Dow companies reported results Thursday morning.

3M (MMM, Fortune 500) reported higher quarterly sales and earnings that topped forecasts, due to stronger demand for its products, in particular, the units that make products for auto makers and computer and television makers. The company also raised its earnings forecast for 2010. Nonetheless, shares fell 3%.

AT&T (T, Fortune 500) reported higher quarterly earnings that met estimates on lower quarterly revenue that slightly surpassed estimates. The company said it added 2.7 million new wireless subscribers, thanks to continued demand for smartphones, e-readers and other electronic devices. Shares inched higher.

Procter & Gamble (PG, Fortune 500) reported weaker earnings and stronger revenue in its fiscal second quarter. However, results surpassed estimates as the consumer products maker cut costs on its products, which include brands such as Pampers and Charmin. Shares gained 2%.

Apple unveiled the new iPad on Wednesday, the 1.5-pound, half-inch wide tablet computer that falls between a smartphone and a laptop. After seesawing Wednesday, Apple shares slipped Thursday.

Federal Reserve: On Wednesday, the central bank said that the economy is continuing to recover slowly, but that it will keep interest rates at historic lows near zero to provide support.

World markets: Global markets gained after several down sessions, impacted by China's debt curbs and S&P's warning that it may cut Japan's debt. Asian markets rallied Thursday, with Japan's Nikkei adding 1.6%. European markets also gained, with London's FTSE up 0.5% and Germany's DAX and France's CAC 40 both up 0.6%.

Commodities and the dollar: The dollar gained versus the euro and fell against the yen.

COMEX gold for February delivery rose 70 cents to $1,085.90 an ounce. Gold closed at an all-time high of $1,218.30 an ounce last month.

U.S. light crude oil for February delivery fell 23 cents to $73.44 a barrel on the New York Mercantile Exchange.

Bonds: Treasury prices fell, raising the yield on the 10-year note to 3.66% from 3.65% late Wednesday. Treasury prices and yields move in opposite directions.

By Alexandra Twin, CNNMoney.com senior writer

anchi22 · **•• 20:01 ••**

Stocks set for early gains

NEW YORK (CNNMoney.com) -- U.S. stocks were set to open higher Friday as upbeat earnings and Fed Chairman Ben Bernanke's confirmation helped improve the mood after the previous session's big selloff.

Dow Jones industrial average, Standard & Poor's 500 and Nasdaq 100 futures were slightly higher.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.

Investors will be seeking to claw back after a heavy day of losses on Wall Street. The Dow and S&P both shed 1% Thursday while the tech-heavy Nasdaq tumbled nearly 2%.

But Len Blum, managing director at Westwood Capital LLC, said he's skeptical of the positive vibe among investors and of the heady expectations for the fourth-quarter results for the gross domestic product, which comes out before the opening bell.

"Everyone's waiting for the GDP, but I think the investors are starting to realize that there's so much fundamental weakness in the economy," said Blum. "The positive results are from the government stimulus and the inventory cycle. I don't think growth will be sustainable without more government stimulus."

Earnings: Rosy results from Microsoft (MSFT, Fortune 500) and Amazon (AMZN, Fortune 500) may offer support. Microsoft posted profit and sales that topped estimates after U.S. markets closed Thursday. Amazon also reported better-than-expected results.

Fed: Investors are also likely to express relief after Bernanke was confirmed for a second term Thursday. Concerns that his term wouldn't be renewed have weighed on investors lately.

Economy: A report on gross domestic product, the broadest measure of the nation's economic activity, is due out at 8:30 a.m. ET. The GDP is expected to have risen at a 4.7% annual rate in the fourth quarter, according to a consensus of economists surveyed by Briefing.com. That's compared to an increase of 2.2% in the prior quarter.

The Chicago PMI, a regional manufacturing survey, is also on tap, as is the University of Michigan's survey on consumer sentiment.

Jobs: President Obama is due to unveil a $33 billion package of tax credits on Friday. The plan is part of his vow to spur job creation.

World markets: Asian shares took another beating as investors took cues from Wall Street's losses. But in Europe, the mood was brighter, with major indexes posting gains in midday trading.

Cash and bonds: The dollar rose against the euro and the yen, but was flat versus the British pound. The price of the 10-year note rose, pushing down the yield to 3.65%.

Gold and oil: The price of gold rose $1.60 per ounce to $1,085.20. The price of oil edged up 15 cents to $73.79 per barrel.

By CNNMoney.com staff

anchi22 · **•• 20:01 ••**

Six banks fail, in Florida, Georgia and California

NEW YORK (CNNMoney.com) -- Regulators shuttered six banks Friday night, notching up 15 failed banks in the first month of in 2010.

The biggest bank to fall was First Regional Bank in Los Angeles, which had deposits of $1.87 billion. Other failed banks include Community Bank and Trust in Cornelia, Ga.; Florida Community Bank in Immokalee, Fla.; First National Bank of Georgia in Carrollton, Ga.; Marshall Bank in Hallock, Minn.; and American Marine Bank in Bainbridge Island, Wash.

Customers of all six banks are protected, however. The Federal Deposit Insurance Corporation, which has insured bank deposits since the Great Depression, currently covers accounts up to $250,000.

First-Citizens Bank & Trust in Raleigh, N.C, aquired nearly all the assets of the day's biggest failure, First Regional. The bank's eight branches will reopen Monday under their new ownership.

SCBT in Orangeburg, S.C., will assume Community Bank and Trust's $1.1 billion in deposits and will purchase "essentially all" of the failed bank's $1.2 billion in assets. SCBT entered into a loss-share agreement with the FDIC on $827.7 million of Community Bank and Trust's assets.

The 36 branches of Community Bank and Trust will reopen as branches of SCBT.

Premier American Bank in Miami will assume Florida Community Bank's $796 million in deposits, and will purchase $499 million of the failed bank's $876 in assets. Premier American Bank entered into a loss-share agreement with the FDIC on $305.4 million of the failed bank's assets.

The 11 branches of Florida Community Bank will reopen as branches of Premier American Bank.

Community & Southern Bank in Carrollton, Ga., will assume First National Bank of Georgia's $757.9 million in deposits and "essentially all" of the failed bank's $832.6 million in assets, according to the FDIC. Community & Southern Bank entered into a loss-share agreement with the FDIC on $607.4 million of the failed bank's assets.

The 11 branches of First National Bank of Georgia will reopen as branches of Community & Southern Bank.

United Valley Bank in Cavalier, N.D., will assume Marshall Bank's $55 million in deposits and will purchase "essentially all" of the failed bank's $60 million in assets, according to the FDIC. United Valley Bank entered into a share-loss agreement with the FDIC on $24 million of failed bank's assets.

The three branches of Marshall Bank will reopen as branches of United Valley Bank.

Columbia State Bank in Tacoma, Wash., will assume American Marine Bank's $309 million in total deposits. American Marine Bank's 11 branches will reopen on Saturday as branches of Columbia State Bank.

Friday's closures will cost the FDIC approximately $1.9 billion.

Customers of the failed banks can access their money over the weekend by writing checks or using ATMs or debit cards. Checks will continue to be processed, and borrowers should make mortgage and loan payments as usual.

The FDIC also said customers should continue to use their existing branch until they receive notice that the takeover has been completed.

A total of 140 banks failed in 2009, the highest since 1992, when 181 banks failed. But that count is far from 1989's record high of 534 closures which took place during the savings and loan crisis.

Last year's spike has raised concerns about the federal deposit insurance fund, which has slipped into the red for the first time since 1991.

The fund was $8.2 billion in the hole as of the end of September. But that includes $21.7 billion the agency has earmarked for future bank failures.

By Hibah Yousuf, staff reporter

anchi22 · **•• 20:01 ••**

Stimulus funds nearly 600,000 jobs last quarter

NEW YORK (CNNMoney.com) -- The White House's massive stimulus plan funded 599,108 jobs in the fourth quarter, administration officials said Saturday.

The figure, based on about 160,000 reports from state, local and corporate recipients, is the second concrete look at the impact of the federal American Recovery and Reinvestment Act. These recipients have been allocated $199.4 billion in spending and received $57.9 billion.

As mandated by Congress, the report covers money spent by states to keep teachers in schools and cops on the street, as well as to rebuild roads, launch green energy initiatives and fund other projects.

It does not tally jobs created indirectly through companies buying supplies for stimulus projects, people spending their tax cuts, increased unemployment benefits and the like.

In total, the economic stimulus program has boosted employment by 1.5 million to 2 million jobs, the president's chief economic adviser said in mid-January. Unlike the figure reported Saturday, the adviser's number is derived from a mathematical formula based on how much money has flowed out the federal door and includes both the direct and indirect hires.

A total of $263.3 billion has been paid to states, contractors and other recipients or distributed in tax breaks. Recipients' reports cover about one-fifth of that total, according to the White House.

Since it was enacted last February, the stimulus program has been a lightning rod for controversy. Republicans have repeatedly attacked the $862 billion effort as a colossal waste of taxpayer dollars that has not created meaningful, long-term employment. They point to the nation's 10% jobless rate as proof of its failings.

Obama administration officials, however, credit the stimulus program with lifting the nation of out of the Great Recession and keeping more people off the unemployment rolls. They made sure to draw the distinction Saturday between the number of jobs recipients reported and the broader figure calculated by the White House Council of Economic Advisers.

"These reports, which provide a snapshot of the impact of a small portion of funds, are yet another indication that the Recovery Act is on-track to create or save 3.5 million jobs by the end of 2010," said Vice President Joseph Biden.

One thing is for certain: The first jobs tally, which showed 640,000 jobs were created, contained numerous errors. After that October report, the administration changed the criteria for counting stimulus-funded jobs. The goal was to make it simpler for recipients to accurately report headcounts.

Recipients no longer have to determine whether a job was "created" or "saved" by stimulus funds, only that it was "funded" by the Recovery Act. Also, the reports only track jobs on a quarterly basis instead of keeping a running total.

Even with these changes, it's still a challenge to determine exactly how many jobs stimulus has funded, experts said. It will come as no surprise if more mistakes are found. Recipients are able to correct their reports after they are posted.

"Not unexpectedly, recipients have made errors when reporting," said Earl Devaney, chairman of the Recovery Accountability and Transparency Board. "By giving recipients the ability to correct mistakes on a continuing basis, we believe the quality of their reports will improve."

California is top beneficiary

The Golden State has been allocated the most stimulus dollars by far. California has received $21.6 billion since the Recovery Act was passed nearly a year ago. Not surprisingly, it has also funded the most jobs -- just over 71,000, a welcome figure in a state with a 12.2% unemployment rate.

New York, which has been allocated $12.6 billion and has an 8.92% unemployment rate, funded just over 43,000 jobs. Florida, which has been approved to receive $9 billion and has an 11% unemployment rate, funded nearly 35,000 jobs.

The company that has received the largest stimulus contracts is Savannah River Nuclear Solutions, which is getting $1.4 billion to deactivate and remediate several reactors and sites. Savannah reported created 800 jobs but says that more than 1,000 subcontactors have also been hired.

The White House posted complete reports on its stimulus data tracker Recovery.gov late Saturday evening. The site allows visitors to check what jobs were created and where, down to the zip code level. A new feature directs users to openings for stimulus-funded jobs.

States thankful for the money

Several governors reported the impact of stimulus dollars on the state even before the administration released the overall figures.

In Massachusetts, for instance, the Recovery Act funded the more than 4,500 jobs in the fourth quarter, just over 3,004 of them in education. Of the total jobs funded, more than 3,230 were retained while 1,315 were created. State agencies spent about $675.6 million during the quarter.

Gov. Deval Patrick, a Democrat, touted stimulus' impact on the alternative energy sector, saying the state will increase wind power 10-fold and solar power 15-fold by next year. The number of solar companies has quadrupled and their employment doubled.

Though the state is facing a $2.7 billion budget gap for fiscal 2011, the stimulus money has helped it launch road projects and keep cops on the street, Patrick said.

"Federal money has not solved our fiscal problems, but it has helped cushion the blow," he said. "These projects are putting people to work now, creating more jobs in the coming months, and will improve the quality of life in Massachusetts for years to come."

Oregon, meanwhile, funded the equivalent of more than 8,300 full-time jobs in the past quarter using stimulus money, according to Gov. Ted Kulongoski. The state spent $167 million in the quarter.

"Thousands of Oregonians are at work today because of the American Recovery and Reinvestment Act," said Kulongoski. "I am pleased that Oregon is moving quickly to get projects on the ground and people working as well as help those Oregonians hardest hit by this economic recession."

By Tami Luhby, senior writer

anchi22 · **•• 20:01 ••**

Stocks ready to claw back

NEW YORK (CNNMoney.com) -- U.S. stocks were poised to kick off the new month on a brighter note Monday as investors consider the release of the Obama administration's new budget, and as Toyota unveiled its plan to fix gas pedals for millions of vehicles.

Dow Jones industrial average, Standard & Poor's 500 and Nasdaq 100 futures were higher.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.

Wall Street had one of its worst months in nearly a year in January, as bank lending curbs in China, President Obama's plan to limit big banks and debt worries rattled investors.

Mark Luschini, chief investment strategist for Janney Montgomery Scott, said President Obama is helping to influence investor sentiment toward the positive, with his focus on the job creation aspects of the stimulus plan.
0:00 /4:22Geithner's bailout burden

"The announcement that's expected to come out [from Obama on Monday] is focused on what's important, which is creating jobs," he said. "He's going to be focused on what the market wants to hear most, which is something directed at the job market."

Economy: President Obama on Monday will reveal a $3.8 trillion budget for 2011 that tries to balance the competing goals of continued government spending to boost the fragile economic recovery and controlling the nation's deficit. The president is due to highlight his budget priorities in a speech at 10:45 a.m. ET.

A report on personal income showed an increase of 0.4% for December. This was more than the 0.3% increase that was expected by a Briefing.com consensus of economists. Also, personal spending edged up 0.2% in December, falling short of the 0.3% increase forecast.

Readings on construction spending and nationwide manufacturing also are on tap.

Companies: Toyota on Monday unveiled details of its plan to fix millions of recalled gas pedals, and said it has already shipped out the new parts.

The automaker has recalled 2.3 million vehicles in the U.S. over a gas pedal that could stick in some circumstances as it becomes worn out.

World markets: In Asia, Japan's Nikkei managed slim gains. Major European indexes were higher in midday trading, reversing course after a slump earlier in the day.

Cash and bonds: The dollar was mixed versus other currencies, slipping against the euro and the yen but rising against the pound. The price of the 10-year note rose, pushing down the yield to 3.61%.

Oil: The price of oil rose 70 cents per barrel to $73.59.

By CNNMoney.com staff

anchi22 · **•• 20:01 ••**

Stocks set to edge higher

NEW YORK (CNNMoney.com) -- U.S. stocks looked set for a slightlly higher start Tuesday, with investors awaiting auto sales and a Senate hearing on proposed new rules on financial reform.

Dow Jones industrial average, Standard & Poor's 500 and Nasdaq 100 futures were narrowly higher.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.

Wall Street bounced back from two-month lows on Monday, with stronger-than-expected readings on the economy -- including personal income, manufacturing and Exxon Mobil's (XOM, Fortune 500) profit -- helping to fuel the rally.

"There's a little bit of change in tone this week," said Art Hogan, chief market strategist at Jefferies & Co., constrasting the recent gains to last week's "drubbing."

"We think things are not quite as dire as the market has been playing out," he said. "This year's earnings season has been much better than expected."

Hogan said 78% of the companies that have reported fourth-quarter earnings so far have beat expectations, helping to lift investor confidence.

Economy: On Tuesday, investors will look to auto sales, which are due out in the middle of the day. A reading on pending home sales also is on tap.

Banks: Former Fed chairman Paul Volcker is due to testify before the Senate Banking Committee at a hearing on financial reform.

The hearing is expected to clear up some of the uncertainty over limits on banks proposed by President Obama last month.

Companies: The onslaught of corporate reports goes on, with Archer Daniels Midland (ADM, Fortune 500), Dow Chemical (DOW, Fortune 500) and UPS (UPS, Fortune 500) among the firms slated to release their financial results.

World markets: Asian shares climbed, with Japan's Nikkei adding 1.6%. Major European indexes edged higher in midday trading.

Cash and bonds: The dollar was mixed against other currencies, slipping versus the euro and the yen but rising against the pound. The price of the 10-year note fell, pushing up the yield to 3.65%.

Gold and oil: The price of gold rose $10.40 per ounce to $1,114.70. The price of oil rose 81 cents to $75.24 per barrel.

By CNNMoney.com staff

anchi22 · **•• 20:01 ••**

Stocks set for lackluster open

NEW YORK (CNNMoney.com) -- U.S. stocks appear to be set for a weak open as investors react to job market reports.

Dow Jones industrial average, Standard & Poor's 500 and Nasdaq 100 futures were slightly lower on Wednesday morning, losing their earlier gains after the release of two job reports.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.

A rally on Wall Street helped the blue-chip Dow post its second straight gain of more than 100 points on Tuesday. Stocks have gained recently amid solid earnings and signs of stabilization in the economy.

"Yesterday, we saw triple digit increases in the market," said Derek Hoffman, chief executive of Wall St. Cheat Sheet. "I'd say that's attributable to positive earnings reports."

Before the release of the job reports, Hoffman said the gains in futures were being buoyed by strong earnings from Time Warner and News Corp., as well as strong sales from Ford Motor Co. (F, Fortune 500)

Jobs: Two reports on employment come out before U.S. markets open Wednesday.

Outplacement firm Challenger Gray and Christmas reported that January job cuts surged to a five-month high of 71,482. But the ADP payroll report showed a decline in job cuts, to a loss of 22,000 jobs in January, compared to the revised loss of 61,000 jobs in December.

Earnings: Media giant Time Warner (TWX, Fortune 500) posted quarterly earnings of $627 million before the opening bell, or 53 cents per share, which was better than expected. The stock moved up slightly in pre-market trading.

Time Warner owns HBO and CNN, as well as Warner Brothers and an array of magazines. It is also the parent of CNNMoney.com.

AOL (AOL) also reported earnings -- its first time since it regained its independence from Time Warner. The company said it swung to a profit of $1.4 million in the fourth quarter even though sales fell 17% to $809.7 million.

Companies: Troubles keep growing for Toyota Motor (TM). U.S. federal investigators are looking into whether electronics caused the problem with the automaker's recalled gas pedals.

World markets: Asian shares gained. The Hang Seng in Hong Kong soared 2.2%. Gains in Japan were more modest, with the Nikkei adding 0.3%. In Europe, major indexes rose slightly in midday trading.

Cash and bonds: The dollar rose versus most international currencies. The price of the 10-year note fell, pushing up the yield to 3.67%.

Oil and gold: Oil prices slipped 20 cents per barrel to $77.03. Oil climbed above $77 a barrel Tuesday amid anticipation that crude supplies fell more than expected last week.

Gold prices fell $5.40 per troy ounce to $1,112.

By CNNMoney.com staff

anchi22 · **•• 20:01 ••**

Unemployment filings head higher

NEW YORK (CNNMoney.com) -- The number of Americans filing for initial unemployment insurance rose last week, the government said Thursday.

There were 480,000 initial jobless claims filed in the week ended Jan. 30, the Labor Department said in a weekly report. This is the highest level since Dec. 12 and up 8,000 from an upwardly revised 472,000 the previous week.

Economists were expecting claims to drop to 455,000, according to a consensus estimate from Briefing.com.

The 4-week moving average of initial claims was 468,750, up 11,750 from the previous week's revised average of 457,000.

"My general outlook had been that the worst of the layoffs were behind us," said Tim Quinlan, an economic analyst at Wells Fargo. "But this shows us that employers still have more fat to trim."

Continuing claims: The government said 4,602,000 people filed continuing claims in the week ended Jan. 23, the most recent data available. That was up 2,000 from the previous week's revised 4,600,000 claims.

The 4-week moving average for ongoing claims fell by 51,250 to 4,617,500 from the previous week's revised 4,668,750.

But the drop may just mean that more filers are dropping off those rolls into extended benefits.

Continuing claims reflect people filing each week after their initial claim until the end of their standard benefits, which usually last 26 weeks. The figures do not include those people who have moved to state or federal extensions, or people whose benefits have expired.

In November, Congress passed a record-long extension of federally paid benefits up to 99 weeks. But the law only helps those who have used up their first 26 weeks of benefits by the end of 2009, so depending on the state, not everyone will receive benefits for the entire 99-week span.

The House and the Senate passed measures in December to extend the filing deadline through the end of February.

As part of President Obama's $154 billion jobs bill, which was also passed by the House in December, the deadline to file for unemployment insurance would be extended to June.

Lawmakers in both chambers had initially introduced bills to push the deadline to apply for benefits as far back as 2011, but House Democratic leaders compromised the effort in order to speed up the process of getting the bill through the Senate.

Despite the disappointing rise in claims, Quinlan said he expects job growth to pick up by the end of the first quarter, helped by the manufacturing sector.

"If there is a sector in this economy that looks like it's recovering faster than others, it's the manufacturing sector," he said. "I don't see manufacturing leading us out of the recovery, but they cut back so aggressively during the recession that as orders come back online, factories may be realizing they are a little short-staffed and that maybe they overdid it with the firings."

State-by-state: Unemployment claims in 2 states rose more than 1,000 for the week ended Jan. 23, the most recent data available. Claims in Oregon jumped the most, by 4,336.

A total of 31 states said the claims fell by more than 1,000. Claims in California dropped the most, by 22,674, which the state said was due to a shorter work week.

By Blake Ellis, staff reporter

Stocks slip on job worries

NEW YORK (CNNMoney.com) -- Stocks tumbled early Thursday after a rise in weekly jobless claims sent an alarm ahead of the big monthly employment report.

The Dow Jones industrial average (INDU) lost 115 points, or 1.1%. The S&P 500 index (SPX) fell 15 points, or 1.4%. The Nasdaq composite (COMP) fell 25 points, or 1.2%.

Stocks fell Wednesday after a weak reading on the services sector of the economy and conflicting reports on the labor market unsettled investors. The selling continued Thursday after the jobless claims report disappointed investors.

"We may well see some nervous trading until we get the proper payrolls [report] tomorrow," said David Jones, chief market strategist at IG Markets in London, referring to the government's monthly employment figures due Friday.

Speaking before the release of the jobless claims report, Jones added that investors are hoping to see a turning point with job market statistics.

"I think there's hope, over the last couple of months, [that] even though unemployment is increasing over the world, we're seeing it increasing at a much lower rate than feared," he said.

Jobs: The number of Americans filing new claims for unemployment rose to 480,000 last week from a revised 472,000 the previous week, the Labor Department reported. Economists surveyed by Briefing.com expected 455,000 new claims.

Continuing claims, the number of Americans receiving benefits for a week or more, rose to 4,602,000 from 4,600,000 the previous week. Economists expected 4,581,000.

Investors were also awaiting Friday's monthly report on employment, the most closely watched gauge of the job market. The government report is expected to show a net gain of 15,000 jobs in January, with an unemployment rate of 10%, according to the Briefing.com consensus.

But the Bureau of Labor Statistics is also expected to issue a big downward revision to its estimate of U.S. payrolls in the 12 months from April 2008 through March 2009.

After the opening bell, a report on December factory orders is due. Orders are expected to have risen 0.5% in December, according to Briefing.com consensus.

Earnings: Cisco Systems (CSCO, Fortune 500) posted upbeat sales and earnings after U.S. markets closed Wednesday. The results topped Wall Street's estimates.

Toyota Motor (TM) reported a profit for its most recent quarter, which ended before it began a massive recall of some of its vehicles. The company said it expects the global recall to cost as much as $2 billion.

World markets: Stocks in Asia dropped. Japan's Nikkei lost 0.5% and the Hang Seng in Hong Kong shed 1.8%. European shares fell in afternoon trading.

Cash and bonds: The dollar rose against most major international currencies but slipped against the yen. The price of the 10-year note gained, pushing down the yield to 3.65%.

Oil and gold: Oil prices fell 94 cents a barrel to $76.04. The price of gold dropped $6 per ounce to $1,105.40.

By CNNMoney.com staff

anchi22 · **•• 20:01 ••**

U.S. headed for a weak rally

NEW YORK (CNNMoney.com) -- U.S. stocks were set for a flat start on Friday, buoyed after the release of an important job market report, even as the rest of the world endured a selloff.

Dow Jones industrial average, S&P 500 futures and Nasdaq 100 futures were slightly higher. The futures were lower most of the morning, but headed into positive territory after the release of the monthly payroll report.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.

U.S. stocks dived Thursday, with the blue-chip Dow briefly falling below the 10,000 mark, amid fears about the growing debt crisis in Greece, Spain and Portugal. The Dow finished the session down 2.6% while the Nasdaq and S&P 500 both sank 3%.

Peter Cardillo, chief market economist for Avalon Partners, said the European debt concerns will continue to dog the market Friday.

"Right now the market is still traumatized over the debt in Greece, Portugal and Spain," he said. "The cost to finance the debt has gone through the roof in Euroland."

World markets: The selloff continued overseas. In Asia, Japan's Nikkei retreated 2.9% and the Hang Seng in Hong Kong shed 3.3%.

European shares tumbled in midday trading. London's FT-100 was down 1.5%, Paris' CAC-40 slid 2.5% and Frankfurt's DAX slid by 1.2%.

Jobs: The Labor Department reported that the U.S. economy shed 20,000 jobs in January, which was worse than expected. However, the unemployment rate dipped to 9.7%, the lowest it has been since August 2009.
0:00 /3:37How to lose 800,000 jobs

The government was expected to show a net gain of 15,000 jobs for the month, with an unemployment rate of 10%, according to economists surveyed by Briefing.com.

Companies: Troubled automaker Toyota (TM) said Friday it was looking into the brakes of its latest Lexus hybrid vehicles because they use the same system as that used on the 2010 Prius.

The problem is the latest for Toyota, which is being investigated by the National Highway Traffic Safety Administration due to braking problems with the Prius.

Cash and bonds: The dollar was mixed against most international currencies, rising against the pound and the yen but dropping against the euro. The price of the 10-year note fell, pushing up the yield to 3.62%.

Oil and gold: The price of oil rose 17 cents per barrel to $73.31. The price of gold dropped $3 per ounce to $1,059.40.

By CNNMoney.com staff

anchi22 · **•• 20:01 ••**

Stocks claw out a gain after late rally

NEW YORK (CNNMoney.com) -- Stocks erased big losses by the close Friday, with technology shares leading the advance, following a three-session rout that had taken the market to its lowest point since last fall.

The Dow Jones industrial average (INDU) added 10 points, or 0.1%, ending at 10.012. The Dow had fallen as low as 9,835 earlier.

The S&P 500 index (SPX) rose 3 points, or 0.3%, and the Nasdaq composite (COMP) gained 16 points or 0.7%. All three major indexes had touched three-month lows before recovering.

Stocks fell sharply in the afternoon as worries about a growing debt crisis in Europe exacerbated uncertainty about the U.S. economic outlook. But the market changed direction as the dollar trimmed bigger gains and some of the selling pressure gave way.

"There may be some late-day buying coming in because the market has sold off pretty dramatically over the last few days," said Haag Sherman, managing director at Salient Partners.

Worries about the Euro zone caused investors to dump riskier assets and plow money into the U.S. dollar and government debt. The greenback rose to a more than 6-month high versus the euro and also gained against the yen. The dollar's strength then dragged on commodity prices, oil and gold stocks and companies and sectors that have been benefiting from a weaker dollar.

"A lot of the selling that we're seeing is technical, and it's all being driven by the dollar," said Jamie Cox, managing partner at Harris Financial Group.

He said that because there's a flight to quality into the dollar, assets that have been benefiting from a weak dollar are getting hit. However, he said that the trend was temporary and that once the panic washed out, buyers would move back into riskier assets.

Job losses continue, but rate falls

Debt crisis: Stocks plunged Thursday on worries that rising debt problems in Greece, Portugal and Spain could throw a wrench into any economic recovery in Europe, which would then influence the United States.

The news that the opposition parties defeated the Portuguese government's austerity plan provided another reminder, if any were needed, that European countries will find it extremely difficult to get a grip on their public finances.

Global markets continued to slide Friday, with Asian and European markets ending lower.

The global jitters overshadowed a U.S. government report that showed moderating job losses despite an improved unemployment rate.

"The employment report was a mixed bag overall, but the market is more focused on what is happening globally," said David Rosenberg, chief economist at Gluskin Sheff & Associates.

He said that with heightened concerns over nations' debt, risk premiums go up and the outlook for the economy and stock market gets cloudier.

Rosenberg said U.S. investors are focused on whether there will be a default or bailout in Greece, and how this will affect the euro and the dollar. "All of this is going to impact U.S. markets," he said.

On the move: The strong dollar again dragged on commodity prices, and energy and metal stocks fell through most of the session. But in the last hour turnaround, oil and gold stocks cut losses or turned higher.

Strength in big tech stocks such as Cisco Systems (CSCO, Fortune 500), Intel (INTC, Fortune 500), IBM (IBM, Fortune 500) and Microsoft (MSFT, Fortune 500) helped temper broader losses and eventually led a comeback.

In other news, Goldman Sachs (GS, Fortune 500) has surprised many on Wall Street by announcing that it is paying CEO Lloyd Blankfein $9 million in company-restricted stock as his bonus. Blankfein was expected to receive a heftier payment.

Earlier, JPMorgan (JPM, Fortune 500) said CEO Jamie Dimon was given a $16 million bonus last year, in restricted stock and options.

Market breadth turned mixed after being negative through most of the session. On the New York Stock Exchange, losers topped winners by nine to seven on volume of around 1.56 billion shares. On the Nasdaq, advancers beat decliners seven to six on volume of 2.84 billion shares.

Rally hits a roadblock: The S&P 500 surged 23% in 2009, and 65% after hitting a 12-year low on March 9 of last year. That momentum propelled stocks into the first half of January. But by the second half of the month, the tone had turned more sour and investors had begun to step back.

Between rally highs hit on Jan. 19 and Friday's lows, the S&P 500 lost 9.2%, getting close to the technical definition of a correction - a loss of 10%.

Jobs: Employers cut 20,000 jobs from their payrolls last month, according to a Labor Department report released before the start of trading. Employers had been expected to add about 15,000 jobs, according to a consensus of economists surveyed by Briefing.com.

Employers cut a bigger-than-initially reported 150,000 jobs from their payrolls in December.

The January report had some positive signs, including an increase in the work week and an increase in temp agency employment -- both of which are seen as leading indicators.

But the report also showed that the impact of the recession on the labor market was far worse than initially reported -- making the recovery process all the more arduous.

The unemployment rate, generated by a separate survey, fell to 9.7% from 10% in December. Economists expected it to hold steady at 10%.
Toyota's troubles: A timeline

Toyota: The troubled company's chief executive apologized Friday for the recall of 8 million cars. However, he did not announce a new recall of the popular Prius Hybrid, despite reports of brake problems.

Earlier, the company said it is also examining the brake systems of the Lexus hybrid vehicles since they used the same system as the 2010 Prius.

Toyota (TM) shares gained 3.5%.

Commodities: COMEX gold for April delivery fell $10.20 to settle at $1,052.80 an ounce, after slumping $49 Thursday.

U.S. light crude oil for March delivery fell $1.95 to settle at $71.19 a barrel on the New York Mercantile Exchange.

Bonds: Treasury prices rose, lowering the yield on the 10-year note to 3.54% from 3.61% late Thursday. Treasury prices and yields move in opposite directions.

By Alexandra Twin, senior writer

anchi22 · **•• 20:01 ••**

Markets: Shaky after the slump

NEW YORK (CNNMoney.com) -- Wall Street avoided a bigger walloping late last week, with sellers finally calling it quits after a nearly 10% plunge in less than three weeks. But the week ahead could be pivotal as investors either jump back in - or retreat even further.

The week ahead brings quarterly earnings from consumer companies Walt Disney and Coca-Cola, as well as economic reports on retail sales, inventories, employment and consumer sentiment.

Debt fears in focus: Worries that Greece will default on its debt, causing a domino effect in other debt-strapped European nations, pummeled U.S. stocks last week. Investors ditched risk and embraced the U.S. dollar and government debt as they worried that a U.S. economic recovery is too fragile to withstand an upheaval across the Atlantic.

But the declines followed weakness in late January, all of which set the S&P 500, Dow and Nasdaq close to 10% below rally highs hit late last month. A 10% selloff is technically a correction, and investors managed to slow and then stop the selling before the market hit such levels late Friday.

"You've clearly got some negative sentiment and legitimate concerns," said Phil Orlando, chief equity market strategist at Federated Investors. "But that doesn't mean the market should be down 10% and continue falling. If we are able to traverse the concerns, we can return the focus to fundamentals, which are starting to improve."

He pointed to the batch of better-than-expected fourth-quarter earnings and some of the recent reports that show the economy is continuing to stabilize, although the job market remains battered.

The challenge is going from an economic recovery that is largely stimulus driven to one that is driven by fundamentals, said Robert Siewert, portfolio manager at Glenmede. "People are questioning the fundamentals."

He said that the issue going forward is "how sustainable corporate earnings and GDP are going to be when we haven't yet seen a fundamental improvement and when we still see systemic problems overseas."

The big jobs hole

Quarterly results: As the quarterly reporting period winds down, just a few market-moving names are scheduled for this week.

Dow components Coca-Cola (KO, Fortune 500) and Walt Disney (DIS, Fortune 500) are expected Tuesday, while Sprint Nextel (S, Fortune 500) is Wednesday.

Coke is expected to have earned 66 cents per share up from 64 cents a year ago. Disney is expected to have earned 39 cents per share, down from 41 a year ago. Sprint Nextel is expected to have lost 19 cents per share after earning 24 cents per share a year ago.

With 314 companies, or 63% of the S&P 500, having reported results, earnings are on track to have risen 206% versus a year ago and revenues to have gained 7%, according to the latest results from tracker Thomson Reuters.

The year-over-year jump is partly due to an abysmal fourth-quarter 2008, at the height of the financial crisis. Unsurprisingly, financial companies are leading the recovery in quarterly results.

Stripping out the financial sector, earnings are expected to have risen 16% versus a year ago, while revenue is expected to have risen 2%.

Results have largely been positive, with 74% of companies beating earnings forecasts and 71% beating revenue forecasts.

On the docket

Monday: There are no market-moving reports scheduled.

Tuesday: The Commerce Department is expected to report in the morning that wholesale business inventories for December fell 0.6% after falling 1.5% in the previous month.

Wednesday: The December trade balance from the Commerce Department is due before the market open. The trade gap is expected to have narrowed to $35 billion from $36.4 billion.

The January Treasury budget, due out in the afternoon, is expected to have narrowed to $60 billion from $91.9 billion in December.

The weekly crude oil inventories report from the government is also due in the morning.

The House Financial Services Committee holds a hearing on the unwinding of Federal Reserve liquidity programs that were put in place to help temper the blow of the recession. Fed Chairman Ben Bernanke is due to testify.

In the afternoon, the House Oversight Committee holds a hearing on Toyota (TM). The company has recalled more than 8 million vehicles due to safety issues with its gas pedal.

Thursday: The January retail sales report is due shortly before the start of trading. Sales are expected to have risen 0.4% after falling 0.3% in December. Sales excluding autos are expected to have risen 0.4% after falling 0.2% in December.

The government's business inventories report for December, due out after the start of trading, is expected to have risen 0.4% after rising 0.4% in the previous month.

The weekly jobless claims report from the Labor Department is also due in the morning.

Friday:The University of Michigan's consumer sentiment index for February is expected to have risen to 74.8 from 74.4, according to forecasts.

By Alexandra Twin, senior writer

anchi22 · **•• 20:01 ••**

Stocks set for early pullback

NEW YORK (CNNMoney.com) -- U.S. stocks were headed for a weak start Monday, as investors remain nervous about the debt situation in Europe.

Dow Jones industrial average, S&P 500 futures and Nasdaq 100 futures were lower, after being higher in earlier trading.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.

Stocks slumped last week amid worries about mounting debt problems in Greece and Spain and the outlook for the U.S. economic recovery. But Wall Street finished Friday's session with gains, thanks to a late-session rally led by tech shares.

With no U.S. economic reports due Monday, investors will remain focused on Europe's fiscal woes, said Art Hogan, chief market analyst at Jefferies & Co.

"The key over the last few days has been what the dollar is doing in response to pressure from Europe," he said.

The U.S. dollar recovered from earlier weakness to trade higher against its main trading partners. The advance came as comments from Group of Seven finance ministers over the weekend failed to soothe concerns about Greece.

Despite the stronger greenback, oil and gold prices held modest gains.

"If we get a bounce in the commodities markets, the stock market might find some support," Hogan said.

Companies: Lender CIT Group (CIT, Fortune 500) said it has tapped former Merrill Lynch CEO John Thain to lead the company. Thain will serve as the company's chairman and chief executive. (Former Merrill chief tapped to head CIT)

Toyota Motor (TM) has told dealers that it is working on a solution to problems with the brake system of its Prius hybrid sedan. Details about the fix are expected to be announced early this week.

World markets: European shares turned mixed, with some markets giving back earlier gains. The DAX in Germany was up 0.1%, while markets in London and Paris fell.

Stocks in Asia pulled back Monday. The Nikkei in Japan shed 1% while Hong Kong's Hang Seng fell 0.6%.

Dollar and bonds: The dollar rose against most international currencies. The price of the 10-year note fell, pushing up the yield to 3.58%.

Oil and gold: The price of oil rose 8 cents per barrel to $71.27. The price of gold rose $14.40 per ounce to $1,066.60

By CNNMoney.com staff