Markets

US housing starts smash July forecasts, surge by the most since 2016

US housing starts jumped 22.6% in July to a seasonally adjusted 1.5 million, the Commerce Department reported Tuesday. The solid report marked the third-straight month of gains and exceeded economists expectations for an increase to 1.25 million. “Housing construction blew past expectations, cementing the industry as one of the solid […]
US housing starts smash July forecasts, surge by the most since 2016
Markets

Walmart climbs 6% after earnings crush estimates, boosted by online shopping

Walmart reported quarterly earnings on Tuesday that crushed Wall Street’s estimates, boosted by a huge surge in ecommerce. Shares of Walmart climbed as much as 6% in premarket trading Tuesday before paring those gains to trade lower. Walmart’s ecommerce sales soared 97% in the second quarter, as the coronavirus pandemic […]
Walmart climbs 6% after earnings crush estimates, boosted by online shopping
Markets

The pandemic recession is in the rear-view mirror and a new cycle of global expansion has launched, a Bank of America Private Bank senior strategist says

Marci McGregor, senior investment strategist, Chief Investment Office, Merrill and Bank of America Private Bank, told Bloomberg on Monday that the recession is in the rear-view mirror and a synchronised expansion is underway around the world. The strategist pointed to strong trends in housing and the resilient consumer as signs […]
The pandemic recession is in the rear-view mirror and a new cycle of global expansion has launched, a Bank of America Private Bank senior strategist says
Markets

US stocks slide after a sharp decline in July retail sales

US stocks fell Friday after disappointing retail sales data showed the ongoing economic rebound slowed in July. Investors continue to expect further government stimulus even though talks for the next package are at a standstill. The market will also be watching for news on trade talks, as senior US and […]
US stocks slide after a sharp decline in July retail sales
Markets

The UK is in an official COVID-19 recession after GDP plunged 20.4% in Q2

The UK has entered a recession for the first time in 11 years. Figures from the Office for National Statistics show that from April to June, the country’s gross domestic product plunged 20.4%. The figures marked a second consecutive quarter of contraction, the technical definition of a recession. The economy […]
The UK is in an official COVID-19 recession after GDP plunged 20.4% in Q2
Markets

Roughly 5.4 million Americans will struggle to pay bills this month without the extra $600 weekly unemployment benefit, survey finds

Roughly 5.4 million Americans will struggle to pay bills this month without the extra $US600 weekly unemployment benefit, according to a Wednesday survey from Morning Consult. By September, 9.2 million Americans will face the same fate if additional stimulus isn’t introduced, according to the study. “As each month passes, it […]
Roughly 5.4 million Americans will struggle to pay bills this month without the extra $600 weekly unemployment benefit, survey finds
Lifestyle

New York City residents saw their wealth drop 13% in the last year

As Bloomberg’s Jack Pitcher reports, a new report from Webster Pacific and New World Wealth found that, looking at wealth levels from June 2020, the combined wealth of New Yorkers shrank by around $US336 billion over the past year. According to Bloomberg, New York saw the greatest drop among major […]
New York City residents saw their wealth drop 13% in the last year
Markets

French GDP dropped at the fastest rate in history, contracting 14% in the second quarter — the latest European economy to reveal its pandemic pain

France posted a nearly 14% decline in output, a third consecutive quarterly drop for the economy, and the worst three month fall in history, according to data released Friday. Although things were expected to be worse as economists predicted a decline of 15.2%, the second-quarter figures reflect the painful economic […]
French GDP dropped at the fastest rate in history, contracting 14% in the second quarter — the latest European economy to reveal its pandemic pain
Markets

What is a recession? How economists define periods of economic downturn

A recession is a period of decline in general economic activity, typically defined when an economy experiences a decrease in its gross domestic product for two consecutive quarters. Other recession indicators include rising unemployment, falling retail sales, slowed manufacturing growth, and a decline in real personal income. While unpleasant and […]
What is a recession? How economists define periods of economic downturn
Markets

Dow slides 226 points as record GDP plunge offsets pre-earnings tech rally

US stocks slid on Thursday after economic data showed the US’s biggest gross domestic product contraction on record. The country’s economy shrank at an annualized rate of 33% in the second quarter, the Commerce Department announced Thursday. Economists expected a contraction of roughly 35%. Jobless claims data pointed to lasting […]
Dow slides 226 points as record GDP plunge offsets pre-earnings tech rally
Markets

US GDP report showed ‘how big of a hole we have to dig ourselves out of’: Here’s what 5 economists are talking about following the record output slump

US gross domestic product slumped at a record 33% annualized rate in the second quarter, according to figures released Thursday. The report reflected April, May, and June, a period that captures both the sweeping lockdowns to contain coronavirus and states’ earliest reopening efforts. Here’s what five economists had to say […]
US GDP report showed ‘how big of a hole we have to dig ourselves out of’: Here’s what 5 economists are talking about following the record output slump
Markets

Dow slides 310 points as US economy posts largest contraction in history

US stocks dropped on Thursday after economic data detailed the US’s biggest gross domestic product contraction on record. The country’s economy shrank at an annualized rate of 33% in the second quarter, the Commerce Department announced Thursday. Economists expected a contraction of roughly 35%. Jobless claims data pointed to lasting […]
Dow slides 310 points as US economy posts largest contraction in history
Markets

US mortgage rates rise for the first time in 6 weeks, jumping above 3%

The rate on the popular 30-year fixed-rate mortgage increased to 3.01%, according to Freddie Mac data released Thursday. It’s the first time in six weeks that US mortgage rates have increased – the rates have been held down by low US Treasury bond yields and near-zero interest rates. Mortgage rates […]
US mortgage rates rise for the first time in 6 weeks, jumping above 3%
Markets

US stocks fade into the close as doubts around a rescue bill erase gains

US stocks limped into the close on Tuesday, paring earlier gains, after Senate Majority Leader Mitch McConnell said he doesn’t expected another stimulus bill to pass in the next two weeks. The uncertainty surrounding further economic relief dented optimism around the European Union’s historic 750 billion euro ($US860 billion) stimulus […]
US stocks fade into the close as doubts around a rescue bill erase gains
Markets

‘My savings ran out a month into this’: Workers laid off because of coronavirus are waiting months to get unemployment benefits, even as the economy reopens

Many of the millions of Americans who have filed for unemployment are experiencing delays in getting approved for benefits and actually receiving them. At the end of June, 66% of those who filed initial claims for unemployment insurance were waiting to receive benefits, according to a One Fair Wage study. […]
‘My savings ran out a month into this’: Workers laid off because of coronavirus are waiting months to get unemployment benefits, even as the economy reopens
Markets

US economic activity improved slightly through early July but remained well below pre-crisis levels, according to Fed’s Beige Book

The US economy improved slightly from the end of May through early July as states reopened their economies from sweeping coronavirus-induced lockdowns, according to the Federal Reserve’s Beige Book report released Wednesday. Still, the Fed noted that activity remains far below its pre-crisis levels. In addition, “outlooks remained highly uncertain,” […]
US economic activity improved slightly through early July but remained well below pre-crisis levels, according to Fed’s Beige Book
Markets

‘We’re really hitting the moment of truth’: 5 Wall Street execs have sounded the alarm on a tough economic recovery ahead. Here’s what they said.

The resurgence in coronavirus cases and new risks of an economic shutdown led major bank leaders to curb investors’ enthusiasm for a near-term recovery. Top executives from Citigroup,Goldman Sachs, JPMorgan, and Wells Fargo all cautioned that, while the worst of the pandemic’s fallout likely hit in the second quarter, the […]
‘We’re really hitting the moment of truth’: 5 Wall Street execs have sounded the alarm on a tough economic recovery ahead. Here’s what they said.
Markets

Relief measures should soon prioritise long-term employment, inflation goals over stabilisation, Fed official says

The Federal Reserve will soon need to pivot from its immediate relief measures to long-term efforts to reach unemployment and inflation goals, central bank governor Lael Brainard said Tuesday. Soaring coronavirus case counts present significant downside risks, she said in a videoconference with the National Association for Business Economics, and […]
Relief measures should soon prioritise long-term employment, inflation goals over stabilisation, Fed official says
Markets

US stocks dip as investors weigh bank earnings and spiking virus cases

US stocks slid on Tuesday as investors weighed second-quarter earnings results for US banks against spiking coronavirus cases. JPMorgan gained after earnings beat Wall Street expectations. Wells Fargo slumped after reporting a loss and cutting its dividend. Coronavirus cases continue to climb in the US, forcing states to rollback reopening […]
US stocks dip as investors weigh bank earnings and spiking virus cases
Markets

Dow gains 369 points on trader optimism around a COVID-19 treatment

US stocks rose on Friday as traders cheered advances in coronavirus treatment. Gilead Sciences said on Friday that an analysis of clinical-trial data for its remdesivir drug found a 62% reduction in mortality risk among severe COVID-19 patients. Still, the US on Thursday reported 63,200 new coronavirus cases, according to […]
Dow gains 369 points on trader optimism around a COVID-19 treatment
Markets

US weekly jobless claims hit 1.3 million, less than economist forecasts

US jobless claims for the week that ended Saturday totaled 1.3 million, the Labour Department said Thursday. That came in below the consensus economist estimate of 1.38 million. Thursday’s report marked the 14th straight week of declining claims. It also brought total filings over a 16-week period to nearly 50 […]
US weekly jobless claims hit 1.3 million, less than economist forecasts
Markets

US stocks climb as investors weigh the economic recovery from coronavirus

US stocks edged higher Wednesday as investors assessed economic-reopening efforts in the face of climbing coronavirus cases, which hit a single-day record of 60,000 on Tuesday. The surge in new cases could further threaten the US economic recovery. Oil prices gained slightly ahead of a key report from the Energy […]
US stocks climb as investors weigh the economic recovery from coronavirus
Markets

‘An essential tool:’ 156 top economists call for recurring stimulus checks until the economy recovers from the coronavirus pandemic

In a recent open letter, 156 top economists urged policymakers to implement ongoing direct-cash payments to boost the economy and keep struggling people afloat. “Direct cash payments are an essential tool that will boost economic security, drive consumer spending, hasten the recovery, and promote certainty at all levels of government […]
‘An essential tool:’ 156 top economists call for recurring stimulus checks until the economy recovers from the coronavirus pandemic
Markets

Goldman Sachs cuts US GDP estimate, now sees economy shrinking 4.6% in 2020

Goldman Sachs economists lowered their third-quarter US GDP growth forecast to 25% from 33% on Saturday, citing weak consumer services spending and the strong uptick in national coronavirus cases. Reimplementation of strict lockdowns and social distancing practices in states including California, Florida, and Texas are “already having a noticeable impact […]
Goldman Sachs cuts US GDP estimate, now sees economy shrinking 4.6% in 2020
Markets

Why historically high unemployment should embolden investors to take more market risk, according to a Wall Street chief strategist

The still-lofty unemployment rate offers investors the latest sign to return to the stock market, James Paulsen, chief investment strategist at The Leuthold Group, said Thursday. The S&P 500’s average annual return in years when the unemployment rate exceeded 8% is roughly 25%, the strategist observed. When joblessness slid below […]
Why historically high unemployment should embolden investors to take more market risk, according to a Wall Street chief strategist
Markets

US weekly jobless claims hit 1.4 million, more than economist forecasts

US jobless claims for the week that ended Saturday totaled 1.43 million, the Labour Department said Thursday. That was slightly higher than the consensus economist estimate of 1.35 million. Thursday’s report marked the 13th straight week of declining claims. It also brought total filings over a 15-week period to nearly […]
US weekly jobless claims hit 1.4 million, more than economist forecasts
Markets

US consumer confidence jumps most since 2011 as the economy reopens

Consumer confidence in June jumped to 98.1 from 85.9 in May, according to a Tuesday report from The Conference Board. Economists surveyed by Bloomberg expected the index to gain to 90.5. The jump was the biggest since 2011. “The re-opening of the economy and relative improvement in unemployment claims helped […]
US consumer confidence jumps most since 2011 as the economy reopens
Markets

A key labour-market ratio has tumbled near record lows — and Deutsche Bank’s top economist says the US has to create a whopping 30 million jobs to reach a new all-time high

In April, the employment-to-population ratio – the percentage of those above 16 who currently have a job – fell to an all-time low of 51.3%. That means only half of working-age Americans are currently employed. “To get the employment-to-population ratio back to where it was at its peak in 2000 […]
A key labour-market ratio has tumbled near record lows — and Deutsche Bank’s top economist says the US has to create a whopping 30 million jobs to reach a new all-time high
Markets

Dow falls 730 points as investors weigh surge in COVID-19 cases

US stocks fell on Friday as spiking coronavirus cases threaten to slow economic reopenings. Bank stocks slumped after the Federal Reserve said on Thursday that it would limit stock buybacks and cap dividends. The Commerce Department said on Friday that US consumer spending jumped by a record amount in May […]
Dow falls 730 points as investors weigh surge in COVID-19 cases
Markets

Dow falls 270 points as investors mull spiking virus cases

US stocks fell Friday amid spiking coronavirus cases that are threatening to slow economic reopenings nationwide. Bank stocks slumped after the Federal Reserve said on Thursday that it will limit stock buybacks and cap dividends. The decline comes amid data showing that US consumer spending jumped a record in May […]
Dow falls 270 points as investors mull spiking virus cases
Markets

US consumer spending spiked a record 8.2% in May as personal incomes fell

US personal consumption expenditures jumped 8.2% in May following a record drop in April, according to a Friday report from the Commerce Department. Also in May, personal income declined 4.2%, the result of a decrease in government social benefits. Spending in vehicles, healthcare, and restaurants drove jumps in both goods […]
US consumer spending spiked a record 8.2% in May as personal incomes fell
Markets

US weekly jobless claims hit 1.5 million, higher than economist forecasts

US jobless claims for the week that ended Saturday totaled 1.5 million, the Labour Department said Thursday. That was slightly higher than the consensus economist estimate of 1.3 million. Thursday’s report marked the 12th straight week of declining claims. It also brought total filings over a 14-week period to about […]
US weekly jobless claims hit 1.5 million, higher than economist forecasts