The Standard & Poor’s 500 index has gained nearly 10 percent since March 10, shortly before investment bank Bear Stearns was rescued from near collapse, and the market’s lowest point since its October peak. For those piling back into stocks, hoping to catch the ride up, market watchers say “Not so fast!”
While the job market has shown signs of improvement, staffing stocks have yet to benefit. Unemployment slipped in April yet analysts say job growth is still slowing, which will soften demand for temporary staffing. The number of temp jobs added fell in March for the sixth straight month, according to the Bureau of Labor Statistics.
The following cases were filed in U. S. Bankruptcy Court in Buffalo, with assets, followed by liabilities. Chapter 7 bankruptcies are for liquidation of assets; Chapter 11 seeks temporary protection from creditors; Chapter 12 is a farm bankruptcy and Chapter 13 is a wage-earner bankruptcy.
By Tim Paradis
- ASSOCIATED PRESS Updated: 05/10/08 6:40 AM
NEW YORK — Wall Street ended the week with a big decline as investors grappled with two of the biggest threats to the economy: fallout from turmoil in the credit market and surging energy prices. All three major indexes suffered losses for the week.
By Rob Gillies
- ASSOCIATED PRESS Updated: 05/10/08 6:40 AM
TORONTO — Canada confirmed Friday its decision to block a U. S. company’s takeover of the space and satellite division of MacDonald, Dettwiler and Associates Ltd., Canada’s leading space technology firm.
By Madlen Read
- ASSOCIATED PRESS Updated: 05/10/08 10:03 AM
NEW YORK — Citigroup Inc.’s new chief executive, Vikram Pandit, plans to stick with a global banking model after months of intense review — but only after shrinking the company by about one-fifth first.
By John Wilen
- ASSOCIATED PRESS Updated: 05/10/08 7:03 AM
NEW YORK — Oil rose above $126 a barrel for the first time Friday, bringing its advance this week to nearly $10, as investors questioned whether a possible confrontation between the United States and Venezuela could cut exports from the OPEC member. Gas prices, meanwhile, rose above an average $3.67 a gallon at the pump, following oil’s recent path higher.
NEW YORK (AP) — Auto parts maker Delphi Corp. reported on Friday that it lost more money in the first quarter than it did a year ago, but that an increased credit line will still allow it to emerge from bankruptcy protection intact.
WASHINGTON (AP) The U. S. Commerce Department said Friday that the U. S. trade deficit narrowed in March as demand for imports registered the biggest decline since the last recession was ending.
Source: Bureau of Economic Analysis Updated: 05/09/08 6:33 AM
As dire as it is, the housing slump is not as big a factor for the economy as investors think. True, the downturn has been unprecedented, leading to foreclosures, seizures in the credit markets, erosion of household wealth, record low consumer confidence, and, until recently, stock market declines. But residential construction contributed just 3.8 percent to first-quarter gross domestic product, which measures the output of all goods and services. The sector’s contribution to the economy has been declining since the first quarter of 2006, notes Paul Lally, economist with the Bureau of Economic Analysis. By contrast, consumer spending hit a high of 70.8 percent of GDP in the first quarter of 2008, based on advance numbers. Exports, another rising category, added 12.7 percent. “Do not freak out about housing,” says JPMorgan Funds Management Chief Market Strategist David Kelly. “We pay too much attention to housing in terms of how it’s going to direct the U. S. economy.” He thinks stocks are under-priced as a result. Housing is closely tracked, with frequent updates on sales, construction activity and prices. “The problem is, every one of those numbers is lousy, and every one makes the evening news,” notes Kelly.
Source: Thomson Financial Updated: 05/09/08 6:33 AM
Student lenders are collecting less interest at a time when their capital costs are rising. This has caused losses for industry leader Sallie Mae (SLM), and forced CIT Group (CIT), Bank of America (BAC), Washington Mutual (WM) and Nel- Net Inc. (NNI) out of certain corners of the market. Last year, the federal government cut the interest rate that can be charged on federal student loans. It also cut reimbursements to lenders in the event of default. The changes come at a tricky time. Lenders profit by packaging loans to resell to investors. Skittishness in the bond market is making the loans harder, or in some cases impossible, to sell.
By David Robinson
NEWS BUSINESS REPORTER
Updated: 05/09/08 6:33 AM
Gibraltar Industries’ battered stock soared by 28 percent on Thursday after the Hamburg steel processing and building products manufacturer’s profits rose by 9 percent, easily topping analyst forecasts.
NEWS STAFF AND WIRE REPORTS Updated: 05/09/08 6:33 AM
General Motors Corp. has agreed to provide as much as $200 million to help American Axle & Manufacturing end a two-month strike that has idled all or part of 33 GM plants.
