Stocks end mostly higher ahead of earnings reports

Stocks on Monday finished marginally ahead of the much anticipated first quarter earning reports that will determine whether the United States Economy is actually improving, and if so how much. Early signs have been promising so far as both Wells Fargo and Goldman Sachs Group Inc. both posted very large but unexpected profits. Over the next week quarterly reports from Citigroup and JP Morgan will be released, those two financial companies have been hit the hardest by the recession, but also have helped lead the rally over the last month.One company that continues to struggle is General Motors, who is lining up for a June 1st bankruptcy.
"If you get a couple earnings reports that are better than the worst that people expected then that might help," said Denis Amato, chief investment officer at Ancora Advisors.
If all goes as well as predicted the Stock Market could experience a large rally over the next week, as many of the previously struggling companies post surprising profits after the first quarter. Hopefully, General Motors, with the help of the United States Government, will be able to crawl themselves out of this hole soon.

http://news.yahoo.com/s/ap/20090414/ap_on_bi_st_ma_re/wall_street;_ylt=AoXH33K1tcS6AzzCbltf3mmyBhIF

Obama says stimulus projects under budget

On Monday April 13th, President Barack Obama said that thousands of major infrastructure projects being undertaken as part of the economic stimulus package are currently ahead of schedule and under budget. President Obama has said that as many as 2,000 new road construction projects have been approved since February.
"By the end of next year our investment in highway projects alone will create or save 150,000 jobs, most of them in the private sector," Obama said during an appearance at the Transportation Department to plug his plan.
News like this regarding new construction projects is very good new for the state of the economy as new projects require more employees to be hired. In President Obama’s speech on Tuesday night he will be addressing the economy, and hopefully more news about its slow continual recovery.

http://news.yahoo.com/s/nm/20090413/ts_nm/us_obama_infrastructure;_ylt=AkIeV0pBCa5gYNzmTx3G_qjv5rEF

Surging Wall Street faces earnings season test

After four consecutive weeks of growth by the Dow Jones, this next week will provide the next test determining the overall health of the U.S. economy. Even with less then stellar news coming out lately regarding record job losses and troublesome news about GM and Chrysler, the stock market has remained relatively stable and actually seen some growth. This has actually caused many economic experts to say that the worst is over, but that remains to be seen. The next key test will be when the first quarter earnings reports are released over the nest couple days.
According to economic experts, unemployment will be the last thing to recover, as sales must increase and business owners will increase hours of current employees before they start hiring again. That is why everyone keeps saying that unemployment will continue to rise even with a slight increase in sales.

http://news.yahoo.com/s/afp/20090404/bs_afp/stocksusweekly;_ylt=Av90ajZP.weD5iO1SBbQ5lWyBhIF

Empty Tables Threaten Some Restaurant Chains

As a direct result of the struggling economy, people are cutting back on their expenditures including going out to eat. Restaurants all over the United States are struggling, even the well-known family restaurants including Applebee’s, Red Lobster, and Outback Steakhouse. One of the main contributors to these companies’ struggles include basically the building of too many restaurants. Since 1990, the number of restaurants and bars in the United States has increased 49%, from 361,000 to 537,000. The United States’ population has grown just 23% during that same period of time.
After 16 consecutive years of economic growth, companies now have to face the consequences of their decisions to quickly expand and acquire more assets. Larger chain restaurants including Outback Steakhouse have been forced to make numerous menu changes including offering an increased amount of entrees at new low rates to lure customers and increase sales in order to decrease their more then 300 million dollars worth of debt. However, not all restaurants are struggling as a result of the economy. Fast food chains including McDonalds and Taco Bell have been thriving as a result of their dollar menu items and by offering combo meals at less then five dollars. There is not a doubt that the effect the economy is having is causing a ripple effect felt throughout the United States.

http://www.nytimes.com/2009/04/04/business/04restaurant.html?_r=1&ref=business

Unemployment soars to 8.5 pct.; 13 million jobless

Unemployment in the United States has now reached 8.5%, the highest in more then 25 years. That 8.5% percent translates into about 13 million Americans that are now without a job. Even with the economy beginning to experience slight improvements, Federal Reserve Chairman Ben Bernanke beliefs that the recession may end as early as this fall, the jobless rate is expected to reach more then 10%. However, not all news is bad currently, because the Dow Jones rose for the fourth consecutive week and is now above 8,000 for the first time in more then two months.
Even Americans that have been lucky enough to hold onto their job have not been unaffected by the recession. The average work week for the month of March dropped to 33.2 hours, a record low. Surprisingly, with so many people losing their jobs as a result of the economic climate there has not been one individual industry that is being hit the hardest. Construction companies, factories, retailers and even the federal government cut thousands of jobs. The Federal Government has taken many steps to help curtail this poor economy by slashing interest rates, budget cuts, and the 787 billion dollar stimulus package.

http://finance.yahoo.com/news/Unemployment-soars-to-85-pct-apf-14850511.html

Many top AIG execs agree to return bonuses

By SARA LEPRO, AP Business Writer

            One of the top stories coming out of the economic stimulus package has been how companies receiving additional federal funds would use the money.  However, one company American International Group Inc (AIG) used a percentage of the approximately $170 Billion they received from the stimulus package to award bonuses to employees. The number is said to be about $165 million in bonuses.  After an onslaught of negative public opinion and pressure from the White House, many of the employees have agreed to return their bonuses. According to Yahoo News, 15 of the top 20 bonus recipients have already agreed to return their bonuses.

            One of the main concerns all along regarding the stimulus package was how companies were going to use the bailout money.  The actions of the insurance company AIG is not the first time companies receiving bailout money have used some of the money for purposes other than it was intended.  President Obama and his administration have been very forceful in saying that AIG employees should return the bonuses. So far approximately $50 million of the $165 million worth of bonuses have been returned.  The actions taken by AIG put into question how Americans can trust these companies to ethically and efficiently use this taxpayer money.

 

http://news.yahoo.com/s/ap/20090324/ap_on_bi_ge/aig_bonuses

Existing Home Sales Up 5.1% in February

            Unexpectedly, the number of home sales in the United States rose 5.1% in February .  This increase was drastically higher then what economists predicted. They actually were expecting a decrease in sales rather then an increase.  Many people believe that increase in housing sales is the first step in leading out of the recession.  However, not all news was good news as many of the sales, 40 to 45 percent, were “distressed sales”, meaning that the homes were sold at prices much lower then their previous cost.  “The average price of for a home sold was $165,000, down 15.5% from last year.  In the United States, housing sales have continued to be stronger in the West, with home sales up 2.6% this month and 30.4% over the last year.  In the Northeast, the housing market is still struggling with sales down 14.9% from a year ago.

            Due to the current economic situation in the United States, any slight improvements in the housing market are a great sign for the economy.  With an increase in buying and selling of houses the market will begin to slowly recover and experience increased activity. The good news coming from the housing market caused the Dow Jones to jump more than 400 points.

 

http://www.foxbusiness.com/story/markets/economy/existing-home-sales--february/