U.S. economic growth accelerated in the April-June quarter to a seasonally adjusted annual rate of 1.7 percent, as businesses spent more and the federal government cut less.
Tag Archives: April June
US economy expands at modest 1.7 percent rate in 2nd quarter as businesses step up spending
U.S. economic growth accelerated in the April-June quarter to a seasonally adjusted annual rate of 1.7 percent, as businesses spent more and the federal government cut less. …read more
Source: FULL ARTICLE at Fox US News
Toshiba swings to profit as devices sell well
Japan’s Toshiba on Wednesday reported $54 million in net profit for the April-June quarter, reversing a quarterly loss a year earlier, thanks to a weak yen and brisk sales of electronic devices. …read more
Source: FULL ARTICLE at Phys.org
Investors Eye Fed for Further Clues on Interest Rates
Filed under: Mortgages, Housing Market, Federal Reserve, Bonds, Interest Rates
By MARTIN CRUTSINGER
WASHINGTON — When the Federal Reserve offers its latest word on interest rates this week, few think it will telegraph the one thing investors have been most eager to know: When it will slow its bond purchases, which have kept long-term borrowing rates low.
The Fed might choose to clarify a separate issue: When it may raise its key short-term rate. The Fed has kept that rate near zero since 2008. It’s said it plans to keep it there at least as long as unemployment remains above 6.5 percent and the inflation outlook below 2.5 percent.
Unemployment is now 7.6 percent; the inflation rate is roughly 1 percent.
Chairman Ben Bernanke has stressed that the Fed could decide to keep its short-term rate ultra-low even after unemployment reaches 6.5 percent. Testifying to Congress this month, Bernanke noted that a key reason unemployment has declined is that many Americans have stopped looking for jobs. When people stop looking for work, they’re no longer counted as unemployed.
If that trend continues, Bernanke said that lower unemployment could mask a still-weak job market and that the Fed might feel short-term rates should stay at record lows.
In the statement the Fed will issue when its two-day meeting ends Wednesday, it could specify an unemployment rate below 6.5 percent that would be needed before it might raise its benchmark short-term rate. It might also say that it won’t raise that rate if inflation fell below a specific level.
Investors would react to any such shift in the Fed’s guidance. Financial markets have been pivoting for months on speculation that the Fed will or won’t soon slow its $85-billion-a-month in Treasury and mortgage bond purchases. Those purchases have led more consumers and businesses to borrow, fueled a stock rally and supported an economy slowed by tax increases and federal spending cuts.
The Fed has signaled that it might slow its bond buying as soon as September — if the economy has strengthened as much as the Fed has forecast. If not, the Fed would likely maintain its stimulus.
On Wednesday, the government will report how fast the economy grew in the April-June quarter. Most economists predict an annual rate of barely 1 percent — far too weak to quickly reduce unemployment. Most think the growth is picking up in the second half of the year on the strength of a resurgent housing market, stronger auto sales, steady job gains and higher pay.
Many economists think the key goal of the Fed’s policy discussions Tuesday and Wednesday will be to stress that the Fed’s actions in coming months will hinge on how the economy fares, not on any timetable.
Some economists think the Fed will be mindful …read more
Source: FULL ARTICLE at DailyFinance
Chrysler 2Q Profit, Sales Rise, but Cuts Full-Year Forecasts
Filed under: Company News, Chrysler, Automotive Industry, Manufacturing, Investing
By DEE-ANN DURBIN
DETROIT — Chrysler Group’s sales picked up in the second quarter thanks to strong U.S. demand for trucks and SUVs, but the company still cut its full-year sales and profit targets after a slower than expected start to the year.
Chrysler said Tuesday that its net income rose 16 percent to $507 million in the April-June period from $436 million a year ago. It was Chrysler’s eighth straight quarterly profit.
Chrysler sold 643,000 vehicles worldwide in the second quarter, up 10 percent from a year ago. Sales were also up 10 percent in the U.S., where Chrysler sells 75 percent of its vehicles. Chrysler’s U.S. sales rose faster than the industry average of 8 percent in the second quarter.
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Revenue was up 7 percent to $18 billion from $16.8 billion.
Chrysler said it now expects to ship 2.6 million vehicles worldwide in 2013, at the low end of its target of between 2.6 million and 2.7 million. It expects to earn between $1.7 billion and $2.2 billion, down from its previous target of around $2.2 billion.
Chrysler’s first-quarter figures suffered because it was slow to release new versions of the Ram pickup and Jeep Grand Cherokee SUV, two of its most popular vehicles. Chrysler CEO Sergio Marchionne described the first quarter as a one-off event and urged workers to “just close your eyes and plug your nose and move on from here.”
Chrysler’s production issues were resolved and there were plenty of vehicles on the ground in the second quarter. U.S. Ram sales rose 30.4 percent over last year as construction companies and other small businesses raced to replace aging trucks. It was the Ram’s best second quarter since 2007.
Grand Cherokee sales soared 27 percent to 47,663. The Grand Cherokee is one of Chrysler’s biggest money makers. U.S. buyers paid an average of $40,294 for a Grand Cherokee in the second quarter, up 9 percent from a year ago, according to car pricing site Kelley Blue Book.
U.S. sales were up for the company’s Dodge, Fiat, Jeep and Ram brands; only the Chrysler brand, with aging vehicles like the Town and Country minivan, saw sales drop.
In the second half of this year, Chrysler should get a boost from the release of the new Jeep Cherokee, which started rolling off the line in Toledo, Ohio, last month. The Cherokee replaces the Jeep Liberty, which was phased out last year.
“Chrysler Group is poised for a very strong performance in the second half of the year,” Marchionne said Tuesday in a statement.
Chrysler is majority owned by Italian automaker Fiat SpA, which is scheduled to release its second-quarter results later Tuesday.
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Source: FULL ARTICLE at DailyFinance
Surprisingly Strong Quarter Lifts Facebook Stock
Facebook’s stock is flying high after the world’s biggest social network posted higher revenue from mobile ads and delivered a healthy second-quarter profit that reversed a loss a year earlier. Facebook said today that it earned $333 million, or 13 cents per share, in the April-June period. That’s up from… …read more
Market Minute: Starbucks Milks Yogurt Deal; Apple Earnings Shine
Filed under: Earnings, Market News, Consumer Goods, Dividend Stocks, Investing
Starbucks plans a big new product line, and a case of when bad is good. Those and more are what’s making business news Wednesday.
The Dow industrials (^DJI) rose 22 points Tuesday, enough for another all-time high. But the S&P 500 (^GPSC) lost 3 points, and the Nasdaq (^IXIC) fell 21.
Starbucks (SBUX) continues to expand beyond coffee. It’s joining forces with Dannon to make Greek yogurt parfaits. The fast-growing yogurt business in the U.S. is worth more than $6 billion, and analysts say there’s still plenty of room to go. Last year, Starbucks expanded its tea business by acquiring the Teavana chain.
Apple’s (AAPL) quarterly earnings fell 22 percent from a year ago, but that wasn’t as bad as most analysts had forecast. Revenue edged higher as it shipped more than 31 million iPhones. That was well above expectations and the stock is likely to climb this morning.
AT&T’s (T) net edged slightly lower, but on the positive it reported the number of new customers signing long-term service contracts nearly doubled from a year ago.
Ford (F) reported better-than-expected second quarter earnings in part due to strong domestic demand for its F-Series pickups. The automaker earned $1.2 billion in the April-June period, propelled by a $2.3 billion profit in North America. Ford shares rose 3 percent in premarket trading.
Among other big names reporting this morning: Boeing (BA), Caterpillar (CAT), Delta Air Lines (DAL) and USAirways (LCC).
Other stocks likely to make big moves to the upside following earnings include video gamemaker Electronic Arts (EA) and software company VMWare (VMW); like to trade to the downside, chipmaker Broadcom (BRCM) and restaurant chain Panera Bread (PNRA).
The big report after the bell today comes from Facebook (FB). The focus will be on how much the company grew its revenue from mobile platforms.
The New York Times (NYT) reports officials in Louisiana are preparing to file suit against Exxon Mobil (XOM), BP (BP) and other oil producers, accusing them of damaging the coastal wetlands that help protect the region from hurricanes.
A new report shows that Google (GOOG) accounts for nearly a quarter of all the Internet traffic in North America. That’s more than Facebook and Twitter combined.
And Carl Icahn, one of those big time investors who can move stock prices, is offering a tease about what he’ll do next. CNBC reports that Icahn plans to give clues about his next big investment on Twitter. His handle is @Carl_C_Icahn.
–Produced by Drew Trachtenberg.
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Source: FULL ARTICLE at DailyFinance
Ford Earnings Beat Forecasts on Higher U.S., China Sales
Filed under: Earnings, Automotive Industry, Ford, Manufacturing, Investing
By DEE-ANN DURBIN
DEARBORN, Mich. — Ford reported better-than-expected second quarter earnings and raised its profit and sales forecasts for the year as strong U.S. pickup truck demand and growing sales in China offset persistent — but narrowing — losses in Europe.
Its shares rose 3 percent in premarket trading.
Ford Motor Co. (F) earned $1.2 billion in the April-June period, propelled by a $2.3 billion profit in North America. U.S. pickup truck sales have jumped 22 percent in the first six months of this year, or nearly three times the pace of total industry sales. That benefits Ford, whose best-selling vehicle in the U.S. is the F-Series pickup.
Ford also reported a best-ever profit of $177 million in Asia. Ford’s sales jumped 47 percent in China the first six months of this year, or more than four times faster than total industry sales growth of 17 percent, as the company introduced popular new vehicles like the EcoSport and Kuga SUVs.
Ford raised its forecast based on the April-June results. The Dearborn, Mich.-based automaker now expects its full-year pretax profit to be equal to or better than the $8 billion it reported a year ago. Previously the company had expected to match that profit.
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Ford also expects sales in the U.S., Europe and China to be in the upper end of its previous forecasts.
In Europe, Ford narrowed its expected full-year loss to $1.8 billion from $2 billion. The company lost $348 million in Europe in the second quarter, which was $56 million better than a year ago.
Ford’s earnings amounted to 30 cents a share in the latest quarter, the same as a year ago. Without one-time items, including separation payments in Europe, where Ford is closing several plants, the company earned 45 cents a share. That surpassed analyst forecast of 37 cents, according to FactSet.
Revenue was up 14 percent to $38.1 billion, beating analyst forecasts of $34.9 billion.
Its shares rose 53 cents, or 3.1 percent, to $17.47 in premarket trading.
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Source: FULL ARTICLE at DailyFinance
Higher Cigarette Prices Help Boost Altria 2Q Earnings
Filed under: Earnings, Food & Beverage, Tobacco, Stocks, Investing
By MICHAEL FELBERBAUM
RICHMOND, Va. — Marlboro maker Altria said Thursday its second-quarter profit rose about 3 percent as higher prices and lower expenses from a longstanding legal settlement offset a decline in cigarette sales.
The owner of the nation’s biggest cigarette maker, Philip Morris USA, also raised the lower end its full-year earnings guidance.
Altria (MO), based in Richmond, Va., earned $1.27 billion, or 63 cents a share, for the April-June period, up from $1.22 billion, or 60 cents a share, a year ago.
Excluding one-time items, earnings were 62 cents a share, missing Wall Street expectations by a penny.
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Revenue, excluding excise taxes, decreased 2.5 percent to $4.5 billion. Analysts polled by FactSet expected $4.62 billion.
Cigarette volumes fell nearly 7 percent to 33.8 billion cigarettes compared with a year ago. Marlboro volumes fell more than 7 percent, volume for its other premium brands fell by nearly 11 percent, and volumes for discount cigarette brands like L&M increased nearly 4 percent,
Its share of the U.S. retail market rose 0.3 percentage points to 50.7 percent. Marlboro’s share of the U.S. market was flat at 43.7 percent.
The premium Marlboro brand has been under pressure from competitors and lower-priced cigarette brands as consumers face economic pressure and high unemployment.
Those economic challenges are in addition to the tax hikes, smoking bans, health concerns and social stigma that have made the cigarette business tougher.
The company has introduced several new products with the Marlboro brand, often with lower promotional pricing. They include special blends of both menthol and non-menthol cigarettes to try to keep the brand growing and to lure smokers away from its competitors. It has said it has a pipeline of innovative products to supplement the Marlboro brand in the future.
Altria and others are focusing on cigarette alternatives — such as electronic cigarettes, cigars, snuff and chewing tobacco — for future sales growth because the decline in cigarette smoking is expected to continue.
Volumes of Altria’s smokeless tobacco brands such as Copenhagen and Skoal rose more than 4 percent from a year ago. For the quarter, the company’s smokeless tobacco brands had 55 percent of the market, though smokeless tobacco is a tiny market compared with cigarettes.
Altria said inventory changes and retail share losses drove volumes for its Black & Mild cigars down 8 percent during the quarter.
Altria also owns a wine business, holds a voting stake in brewer SABMiller, and has a financial services division.
The company Thursday also raised the lower end of its full-year adjusted earnings guidance by a penny to a range of $2.36 and $2.41.
During the latest quarter, Altria said it repurchased 3.7 million shares for a total cost of about …read more
Source: FULL ARTICLE at DailyFinance
Gannett Q2 Net Income Falls; Revenue Flat
By The Huffington Post News Editors
MCLEAN, Va. (AP) — Gannett Co., the owner of USA Today and other newspapers and television stations, said Monday that net income fell 5 percent in the most recent quarter as newspaper advertising revenue fell and the company took charges for job cuts and other restructuring costs.
Gannett earned $113.6 million, or 48 cents per share, in the second quarter, compared with $119.9 million, or 51 cents per share, a year earlier.
Excluding the restructuring costs, Gannett said it had profit of 58 cents per share in the April-June quarter, which matched the average estimate of analysts surveyed by FactSet. A year ago, adjusted profit was 56 cents per share.
Source: FULL ARTICLE at Huffington Post
Survey: Brighter U.S. Economic Outlook Boosts Hiring
Filed under: Market News, Labor, Job Market, Economy
By CHRISTOPHER S. RUGABER
WASHINGTON – Companies are increasingly confident the economy will grow at a modest pace over the next year and are hiring more, according to a survey of business economists.
Nearly one-third of the economists surveyed by the National Association for Business Economics said their companies added jobs in the April-June quarter, according to a report released Monday. That’s the highest percentage in nearly two years. And 39 percent expect their firms will hire more in the next six months. That’s near the two-year high of 40 percent reached in the January-March quarter.
The hiring pickup occurred even though sales and profit growth slowed in the second quarter.
Optimism about future economic growth increased. Nearly three-quarters of the survey respondents forecast growth of 2.1 percent or more over the next 12 months. That’s up from two-thirds in the first quarter survey, released in April, and the most in a year.
The quarterly survey’s results echo much of the recent data tracking the economy. Growth has been slow in the past nine months, but employers have added jobs at a healthy pace. Many economists anticipate that the steady hiring will help accelerate growth in the second half of this year.
The NABE surveyed 65 of its member economists between June 18 and July 2. The economists work for companies from a variety of industries, including manufacturing, transportation and utilities, finance, retail and other services.
Among the findings:
– Only about 35 percent of the respondents said sales at their firms increased in the second quarter. That’s sharply lower than the 55 percent who reported rising sales in the first quarter. And 15 percent said sales fell, up from 9 percent in the first quarter.
– Profit growth also slowed: Only 21 percent of respondents said profit margins increased last quarter, down from 29 percent in the first.
– Only 19 percent of economists said their firms were raising wages and salaries, down from 31 percent in April and the lowest proportion since October.
– A small but increasing minority of respondents say that government spending cuts and tax increases have hurt their businesses. Twenty-six percent of the economists said their firms were negatively impacted, up from only 16 percent in April. Still, 74 percent said the government policies had no impact on their businesses, though that’s down from 79 percent three months earlier.
Looking ahead, companies are increasingly concerned about higher interest rates. That reflects the jump in rates that took place following Federal Reserve Chairman Ben Bernanke’s comments in late May that the Fed could slow its bond-buying program later this year. Those purchases are intended to keep interest rates low.
The interest rate on …read more
Source: FULL ARTICLE at DailyFinance
Venture investments drop in 2Q, report finds
(AP)—A new report says funding for U.S. startups declined in the April-June period from a year ago, as venture capitalists funneled less money into fewer deals. …read more
Source: FULL ARTICLE at Phys.org
India's TCS shares at record high on upbeat earnings
Shares in Tata Consultancy Services, India’s biggest IT outsourcing firm, rose to a record high on Friday after reporting better-than-expected quarterly earnings.
TCS jumped as much as 3.84 percent to 1,724.0 rupees on the Bombay Stock Exchange after announcing Thursday that net profit had risen 16.8 percent to 38.31 billion rupees ($641 million) in the April-June quarter.
The firm, part of the steel-to-tea Tata conglomerate, counts blue-chip companies such as British Airways, BP, Citigroup and Microsoft among its main clients.
“TCS’s results were hugely positive, the highlight being a 6.1 percent volume growth, a seven-quarter high,” said Ankita Somani, an analyst with Mumbai’s Angel Broking.
TCS and its rival Infosys — which lead India’s flagship IT outsourcing industry — have both reported strong earnings this month, despite lingering uncertainty over global business conditions.
Infosys last week reported a nearly four percent rise in quarterly net profit and kept its market forecast intact.
India’s software outsourcing industry carries out a wide range of jobs for Western firms such as answering calls from bank customers, processing insurance claims and developing software.
India, with its large English-speaking workforce, accounts for at least 50 percent of the global outsourcing market.
Source: FULL ARTICLE at Fox World News
EBay 2Q profit slides; Europe remains weak spot
A challenging overseas market is weighing on eBay’s outlook for the second half of the year, sending shares lower in after-hours trading Wednesday even though the e-commerce bellwether’s second-quarter results were roughly in line with Wall Street’s expectations.
EBay shares fell $3.55, or 6.2 percent, to $53.83 in extended trading.
Revenue rose by 14 percent in the April-June period, as its PayPal business and namesake online marketplace continued to grow. But net income declined amid higher expenses.
The company’s shares fell by about 6 percent to $53.95 in extended trading after the results came out on Wednesday. Though he called the quarter’s results strong, CEO John Donahoe said economic weakness in Europe and Korea will “continue to be a challenge” in the second half of the year. The company kept its full-year guidance unchanged, but indicated that results may come in at the lower end of the expected revenue and profit range.
EBay Inc. earned $640 million, or 49 cents per share, in the April-June period. That’s down 8 percent from $692 million, or 53 cents per share, in the same months a year earlier.
Adjusted to exclude one-time items, per-share earnings rose to 63 cents from 56 cents and matched Wall Street’s expectations.
Revenue grew by 14 percent, to $3.88 billion from $3.4 billion. Analysts polled by FactSet expected $3.89 billion.
Donahoe said that eBay’s core businesses — PayPal and its e-commerce sites — are going strong. PayPal, which has been the company’s fastest-growing segment, added 4.7 million active registered accounts, ending the quarter with 132 million users.
Revenue at PayPal grew 20 percent to $1.6 billion as eBay continued to expand its once online-only payments service to brick-and-mortar stores.
Marketplaces revenue increased 10 percent to $2 billion. Gross merchandise volume, an important metric that measures all items sold on eBay excluding vehicles, grew 13 percent to $18 billion.
EBay’s operating expenses were $1.92 billion, up 12 percent from a year earlier.
For the current quarter, eBay forecast earnings of 49 to 51 cents per share and adjusted earnings of 61 to 63 cents per share. Analysts estimated higher adjusted earnings of 65 …read more
Source: FULL ARTICLE at Fox US News
Oil stays near $106 ahead of US inventories report
The price of oil stayed near $106 a barrel Tuesday as energy markets waited for the next U.S. report on crude and fuel inventories for confirmation of recent signs of increased demand.
Benchmark crude for August delivery was down 35 cents at $105.97 a barrel at midafternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract gained 37 cents to settle at $106.32 on Monday.
Oil is up about 10 percent so far this month. It has been jolted higher by unexpectedly sharp drops in U.S. crude and gasoline inventories, which suggest stronger demand. The military ouster in early July of Egypt’s president has also added a premium to crude, reflecting the risk of supply disruption from political instability in a country that controls the Suez Canal.
Those factors were tempered Monday by a second straight quarter of slowing economic growth in China and slower growth in U.S. retail sales in June. China’s economy expanded 7.5 percent in the April-June quarter after 7.7 percent growth in the previous quarter.
Wednesday’s report from the Energy Information Administration on U.S. crude and fuel inventories might show a third consecutive weekly drop in supplies. That would bolster the case of those traders and analysts who believe the oil price will rise further because U.S. energy demand is rising in step with faster hiring.
Brent crude was down 25 cents to $107.85 a barrel on the ICE Futures exchange in London.
In other energy futures trading on Nymex:
— Wholesale gasoline rose 1 cent to $3.04 a gallon.
— Heating oil was steady at $3.03 a gallon.
— Natural gas fell 2.4 cents to $3.65 per 1,000 cubic feet.
Source: FULL ARTICLE at Fox World News
ADB trims Asia growth forecasts on China slowdown
China’s slowing economic growth is weakening momentum throughout the rest of Asia, the Asian Development Bank said on Tuesday as it revised down its forecasts for the region.
A day after Beijing released data showing its economy slowed for a second successive month in April-June, the Manila-based ADB trimmed its outlook for developing Asia this year to 6.3 percent, from 6.6 percent.
In the update to its annual Asian Development Outlook publication, first published in April, the bank also pared its 2014 forecast for developing Asia to 6.4 percent, from 6.7 percent.
The update is only a little better that what the bank described in the report as the region’s “relatively sluggish” growth pace of 6.1 percent last year.
“The drop in trade and scaling back of investment are part of a more balanced growth path for (China), and the knock-on effect of its slower pace is definitely a concern for the region,” the bank’s chief economist, Changyong Rhee, said in a statement.
“But we are also seeing more subdued activity across much of developing Asia,” Rhee added.
Developing Asia groups 45 nations or territories from Central Asia through to the Pacific islands, but excludes Japan.
The report cited a marginally better outlook for the advanced economies, particularly Japan.
However, this did not lead to stronger demand for Asian exports, and the first-half economic performance across the region was “unexpectedly subdued”, it added.
China said Monday gross domestic product expanded 7.5 percent in the second quarter, following 7.7 percent in the previous three months and 7.9 percent in October-December.
The ADB said it now sees China’s economy growing 7.7 percent this year and 7.5 percent in 2014.
Both figures are lower than its April forecasts of 8.2 percent and 8.0 percent. The Asian economic giant grew 7.8 percent last year.
The ADB now expects Southeast Asia’s economies to expand 5.2 percent this year, down from 5.4 percent.
It also trimmed its forecast for South Asia to 5.6 percent this year, while maintaining its 6.2 percent projection for 2014.
On a positive note, the ADB said slower GDP growth was helping the region contain inflation., while expanded global natural gas production was also helping suppress energy prices.
The bank lowered its inflation forecasts for developing Asia to 3.5 percent this year and 3.7 percent in 2014, the latter on par with the 2012 rate.
Source: FULL ARTICLE at Fox World News
US business stockpiles up modest 0.1 percent
U.S. businesses increased their stockpiles only slightly in May, despite a solid sales increase. The figures suggest economic growth has slowed but could pick up in the second half of the year.
The Commerce Department says business stockpiles rose just 0.1 percent in May from April, half the previous month’s increase.
But sales increased 1.1 percent in May after being flat in April. That’s the best gain since February.
Slower restocking could weigh on economic growth in the April-June quarter because it means companies ordered fewer factory goods. But the strong sales gain suggests companies may have to order more goods in the coming months to keep up with demand. That could drive more economic growth in the second half of the year.
Source: FULL ARTICLE at Fox US News
Nissan re-launches Datsun after 30 years in India
Nissan has launched a new Datsun model in India three decades after shelving the brand that helped win Western acceptance of Japanese autos.
The company hopes bringing back the brand that built its U.S. business will fuel growth in emerging markets with a new generation of car buyers.
The reimagined Datsun — a five-seat hatchback — will go on sale in India next year for under 400,000 rupees (about $6,670).
It is designed to appeal to aspirational middle-class strivers, or as its English-language website describes the car: the “badge of the risers.”
But the Datsun enters the Indian market at a tough time. Sales of passenger cars fell by 10 percent in the April-June quarter due to an economic slowdown and high interest rates that make car loans less affordable.
Source: FULL ARTICLE at Fox World News
Oil hangs near $106 as China slowdown absorbed
Oil marked time near $106 a barrel Monday as traders navigated conflicting signals about the strength of future demand: slowing China growth and plunging U.S. fuel stockpiles.
Benchmark crude for August delivery was up 3 cents at $105.98 a barrel at early afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract jumped $1.04 to $105.95 in New York on Friday.
Oil is up about 10 percent so far this month. It has been jolted higher by unexpectedly sharp drops in U.S. crude and gasoline inventories, which suggest stronger demand. The military ouster in early July of Egypt’s president has also added a premium to crude, reflecting supply disruption risks from political instability in a country that controls the Suez Canal.
Those factors were tempered Monday by a second straight quarter of slowing economic growth in China. The world’s No. 2 economy expanded 7.5 percent in the April-June quarter after 7.7 percent growth in the previous quarter.
Asian stock markets brushed off the Chinese data as it met expectations and some analysts had expected an even sharper slowdown. Still, it was China’s weakest growth since 1991 and will temper its appetite for crude and other fuels.
Brent crude was down 3 cents at $107.90 a barrel on the ICE Futures exchange in London.
In other energy futures trading on Nymex:
— Wholesale gasoline was down 1.2 cents at $3.032 a gallon.
— Heating oil slipped 0.1 cent to $3.03 a gallon.
— Natural gas added 2.7 cents to $3.671 per 1,000 cubic feet.
Source: FULL ARTICLE at Fox World News
US unemployment aid applications rise to 352K
The number of Americans seeking unemployment benefits increased just 4,000 last week to a seasonally adjusted 352,000. The slight gain kept applications at a level consistent with solid hiring and suggests March’s sluggish hiring may be temporary.
The Labor Department report released Thursday also noted that the four-week average, a less volatile measure, rose to 361,250.
Applications are a proxy for layoffs. They jumped three weeks ago to a four-month high, but then plummeted the following week. The sharp fluctuations reflected volatility around the Easter holiday, department officials said. Overall, applications have declined slightly since January.
Job growth slowed sharply in March. Employers added only 88,000 jobs last month, much lower than the average monthly gain of 220,000 from November through February.
The drop in applications is among the reasons many economists predict job growth rebounded this month, to around 150,000 net jobs.
Declines in applications signal that companies are laying off fewer workers. But layoffs are only half of the equation. Businesses also need to be confident enough in the economic outlook to add more jobs.
The unemployment rate fell to 7.6 percent in March, down from 7.7 percent in February. Still, the drop occurred because more people out of work stopped looking for jobs. The government doesn’t count people as unemployed unless they are actively looking for work.
The economy is expected to grow at a much quicker pace in the January-March quarter than in the final three months of last year. Most economists forecast growth could top an annual rate of 3 percent in the first quarter, up from just 0.4 percent in the fourth quarter.
But many analysts now expect growth will slow in the April-June quarter, mostly because across-the-board government spending cuts kicked in March 1. That may have made some businesses nervous about hiring last month
From: http://feeds.foxnews.com/~r/foxnews/national/~3/K9aVXAE4QHo/