Growth Probably Cooled as Spending Slowed: U.S. Economy Preview
A lack of jobs, a loss of household wealth stemming from the slumps in stocks and housing, tight credit and the need to reduce debt and rebuild savings are among reasons economists forecast spending will be slow to recover. Purchases will increase at a 2.6 percent pace on average in the second half of the year, according to the median estimate of economists surveyed earlier this month.
Company payrolls rose by 83,000 in June, while overall the economy lost 125,000 jobs, the Labor Department reported July 2. The unemployment rate fell to 9.5 percent as discouraged workers dropped out of the labor force.
A widening trade gap and a slower pace of inventory restocking also depressed growth last quarter, economists said. Stockpiles climbed 0.1 percent in May, the smallest gain this year, according to Commerce Department data.
EU Stress Tests Fail to Reassure Investors Wary of Criteria
“The seven that failed the tests were already banks that had failed or were in the watch list, and that says to me that these tests are not telling us anything we don’t already know,” Sri-Kumar said. “I don’t think the markets will buy it. We’ll have to wait until the Europe markets open on Monday.”
Investors face a world of correlation
Perception of macro risks is common across the world and will rightly drive stocks in unison. This explains how companies with no exposure to Greece moved in line with the ebbs and flows of the eurozone crisis – everyone now knows that the Greek situation has the potential to inflict losses across the global economy.
FDA approves larger dose of Pfizer’s Aricept
NEW YORK (AP) — Drugmakers Eisai Inc. and Pfizer Inc. said on Saturday that government regulators have given them permission to make a larger dose of its Alzheimer’s disease drug Aricept for patients who have already been taking the smaller dose. Aricept is the version of the drug donepezil, and is co-marketed by Eisai, of … Read more
