Markets

What are cyclical stocks? High-profit but volatile stocks whose prices rise and fall as economy grows and declines

A cyclical stock is a stock whose performance follows the overall economy, rising when it grows and dropping during declines. Cyclical stocks typically belong to industries dependent on discretionary spending: travel, entertainment, auto manufacturing, building construction, and luxury retail. Cyclical stocks are volatile and transactions have to be carefully timed, […]
What are cyclical stocks? High-profit but volatile stocks whose prices rise and fall as economy grows and declines
News

4 jarring signals that show the US economic recovery is weakening

Several economic indicators updated in recent weeks suggest the ongoing US recovery is deteriorating as COVID-19 cases spike and new stimulus remains absent. Cities including Chicago, San Francisco, and New York City have intensified partial lockdowns to curb the virus’s spread. The restrictions threaten to further slow the nation’s bounce-back […]
4 jarring signals that show the US economic recovery is weakening
News

US companies added 365,000 jobs in October, missing economist estimates, ADP says

The US added 365,000 private payrolls in October, according to ADP’s monthly employment report. The reading falls well below the median economist estimate of 643,000 payrolls, according to Bloomberg data. The report precedes the US Bureau of Labour Statistics’ monthly nonfarm payrolls report set for Friday release. Visit Business Insider’s […]
US companies added 365,000 jobs in October, missing economist estimates, ADP says
News

US consumer comfort tumbles to lowest since August on revived virus fears

Soaring COVID-19 case counts throughout the US dragged consumer confidence to an eight-week low. Bloomberg’s index of consumer comfort fell to 46.3 last week from 46.6, its lowest level since August. The decline follows steady gains in September and comes as rising coronavirus cases revive concerns of another economic shutdown. […]
US consumer comfort tumbles to lowest since August on revived virus fears
Markets

Wall Street’s first-half profits rocketed 82% to their highest since 2009

New York’s securities industry notched its largest first-half profit since 2009 due to sharp increases in trading and underwriting activity, New York State Comptroller Thomas DiNapoli said in a Thursday report. Pretax profits through the first six months of the year surged 82% to $US27.6 billion. Underwriting revenues hit a […]
Wall Street’s first-half profits rocketed 82% to their highest since 2009
Markets

Australian ecommerce is enjoying a $4 billion boom during the pandemic – and online small businesses are reaping the rewards

Australian small businesses have migrated online to share in a $4 billion-plus ecommerce boom. New Deloitte research shows that small businesses increased their online revenues by between $105,000 and $708,000 during the pandemic. It’s also helped keep more Australians employed and protect against a general decline in spending. Visit Business […]
Australian ecommerce is enjoying a $4 billion boom during the pandemic – and online small businesses are reaping the rewards
News

US weekly jobless claims rise to 898,000 as labour-market recovery stumbles

New US jobless claims for the week that ended Saturday totaled 898,000, the Labour Department said Thursday. The reading came in above the consensus economist estimate of 825,000, and also marks an increase from the previous week’s revised figure. Continuing claims, which track Americans receiving unemployment benefits, fell to 10 […]
US weekly jobless claims rise to 898,000 as labour-market recovery stumbles
Markets

How the Federal Reserve uses expansionary monetary policy to stimulate growth during an economic downturn

Expansionary monetary policy is a tool central banks use to stimulate a declining economy and GDP. The Federal Reserve has three expansionary monetary policy methods: lowering interest rates, decreasing banks’ reserve requirements, and buying government securities. Expansionary monetary policy’s aim is to make it easier for individuals and companies to […]
How the Federal Reserve uses expansionary monetary policy to stimulate growth during an economic downturn
Strategy

This chart shows which industries are bouncing back as the pandemic continues

Business Insider looked at the job losses and gains from February to September among industries. Industries with the biggest drops in employment from February to September tended to pay lower wages, while high-wage industries were close to their pre-pandemic employment levels. This change in employment is similar to changes between […]
This chart shows which industries are bouncing back as the pandemic continues
Markets

US weekly jobless claims fall to 837,000 as economic recovery grinds onward

New US jobless claims for the week that ended Saturday totaled 837,000, the Labour Department said Thursday. The reading landed below the consensus economist estimate of 850,000 and marked a decrease from the prior week. Continuing claims, which track Americans receiving unemployment benefits, fell to 11.8 million for the week […]
US weekly jobless claims fall to 837,000 as economic recovery grinds onward
Markets

US companies added 749,000 jobs in August, beating economist forecasts, ADP says

The US added 749,000 private payrolls in August, according to ADP’s monthly employment report. The total beat the median economist estimate of 649,000 payrolls, according to estimates compiled by Bloomberg. The report precedes the US government’s nonfarm payrolls report slated for Friday release. Visit Business Insider’s homepage for more stories. […]
US companies added 749,000 jobs in August, beating economist forecasts, ADP says
News

The main causes of the Great Depression, and how the road to recovery transformed the US economy

While the October 1929 stock market crash triggered the Great Depression, multiple factors turned it into a decade-long economic catastrophe. Overproduction, executive inaction, ill-timed tariffs, and an inexperienced Federal Reserve all contributed to the Great Depression. The Great Depression’s legacy includes social programs, regulatory agencies, and government efforts to influence […]
The main causes of the Great Depression, and how the road to recovery transformed the US economy
Markets

US weekly jobless claims climb to 870,000 as pace of economic recovery slows

New US jobless claims for the week that ended on Saturday totaled 870,000, the Labour Department said Thursday. The reading came in above the consensus economist estimate of 840,000 and marked an increase from the previous week. Continuing claims, the aggregate sum of Americans receiving unemployment benefits, reached 12.6 million […]
US weekly jobless claims climb to 870,000 as pace of economic recovery slows
Markets

What is a bear market? How to make sense of a prolonged period of decline in the stock market and invest wisely

A bear market occurs when there’s been a significant, continuous fall in stocks or another asset, usually at least 20%. Bear markets generally indicate low investor confidence and a sluggish economy. Despite their negative reputation, bear markets can offer good buying opportunities for patient investors. Visit Insider’s Investing Reference library […]
What is a bear market? How to make sense of a prolonged period of decline in the stock market and invest wisely
Markets

US household net worth hits all-time high on surging stocks and stimulus help

Household net worth surged a record $US7.6 trillion in the second quarter to its highest level ever, according to Federal Reserve data published Monday. The gains were mostly fuelled by the stock market’s rapid bounce-back and relief spending included in March’s CARES Act. Equities alone added $US5.7 trillion to households’ […]
US household net worth hits all-time high on surging stocks and stimulus help
Markets

The Fed’s money-pumping efforts are driving a new economic cycle that’s reminiscent of 2009, Canaccord Genuity says

The Federal Reserve’s liquidity-boosting measures place the economy on track for a 2009-style upswing, Canaccord Genuity analysts said in a Thursday note. Policymakers signalled on Wednesday the central bank will hold rates near zero through 2023, and maintained asset purchases of at least $US120 billion in Treasurys and mortgage-backed securities […]
The Fed’s money-pumping efforts are driving a new economic cycle that’s reminiscent of 2009, Canaccord Genuity says
Markets

US weekly jobless claims decline to 860,000 amid signs of economic recovery

New US jobless claims for the week that ended Saturday totaled 860,000, the Labour Department said Thursday. That came in slightly above the consensus economist estimate of 850,000 but marked an encouraging decline from the prior week. Continuing claims, the aggregate total of people receiving unemployment benefits, amounted to 12.6 […]
US weekly jobless claims decline to 860,000 amid signs of economic recovery
News

No one is coming to save the global economy this time

During the financial crisis, two countries kept the global economy from cratering even further than it did – China and India. Unfortunately this time around – in the economic crisis caused by the corornavirus pandemic – no country is coming to save us. India has been on lockdown for months, […]
No one is coming to save the global economy this time
Markets

US weekly jobless claims hit 884,000, more filings than economists expected

New US jobless claims for the week that ended Saturday totaled 884,000, the Labour Department said Thursday. That came in above the consensus economist estimate of 850,000. Continuing claims, the aggregate total of people receiving unemployment benefits, totaled 13.3 million for the week that ended August 29. That was also […]
US weekly jobless claims hit 884,000, more filings than economists expected
Markets

‘We’ve now left the part of the recovery where there were lots of easy wins’: Here’s what 4 economists had to say about the August jobs report

In August, the US economy added 1.37 million jobs and the unemployment rate fell to 8.4%, the Labour Department reported Friday. The report narrowly beat economist expectations, showing that the labour market recovery from the coronavirus pandemic is moving forward. Still, economists worry that the pace of recovery has stalled. […]
‘We’ve now left the part of the recovery where there were lots of easy wins’: Here’s what 4 economists had to say about the August jobs report
Markets

US weekly jobless claims hit 881,000, fewer filings than economists expected

Summary List Placement Hundreds of thousands of Americans filed for unemployment insurance last week as coronavirus-driven layoffs persisted. But the figures weren’t as dire as experts expected. New US weekly jobless claims totaled an unadjusted 881,000 for the week that ended Saturday, the Labour Department reported Thursday. That came in […]
US weekly jobless claims hit 881,000, fewer filings than economists expected
Markets

Half of out-of-work Americans were unable to cover basic expenses in August as the additional unemployment benefit dropped to $300, study finds

Half of out-of-work Americans were unable to cover basic expenses with money from their unemployment benefits in August as the additional weekly unemployment benefit dropped to $US300 from $US600, according to a study from Morning Consult. It’s also becoming less likely that furloughed or laid-off workers will be able to […]
Half of out-of-work Americans were unable to cover basic expenses in August as the additional unemployment benefit dropped to $300, study finds
Markets

We’re in the ‘early innings’ of a bull market, and any temporary correction will be just a buying opportunity, Leuthold strategy chief Jim Paulsen says

Jim Paulsen said during a Leuthold Group webinar on Thursday that he believes stocks are in the early innings of a bull market. The chief investment strategist said investors should be prepared for more than one correction, but they won’t be permanent and could be buying opportunities. Paulsen added that […]
We’re in the ‘early innings’ of a bull market, and any temporary correction will be just a buying opportunity, Leuthold strategy chief Jim Paulsen says
Markets

80% of economists see a chance of a double-dip recession, survey finds

Four in five panelists surveyed by the National Association for Business Economics said they see at least a 25% chance of the coronavirus fuelling a second economic downturn, or a “double-dip” recession. Nearly two-thirds of respondents said they viewed the US as still in a recession, and almost half said […]
80% of economists see a chance of a double-dip recession, survey finds
Markets

Obama’s former top economist tells us why it made ‘no sense’ for the GOP to pause stimulus spending — and breaks down what should be in the next aid package

Unemployment remains high and new jobless claims are still above 1 million almost five months into the coronavirus pandemic. Former top Obama economic advisor Jason Furman says Republicans made a mistake in assuming the economy would recover on its own without further government spending. “They have recessed without having acted […]
Obama’s former top economist tells us why it made ‘no sense’ for the GOP to pause stimulus spending — and breaks down what should be in the next aid package