This past week's data point of significance for investors has to be March's job report, which indicated the U.S. economy created a better-than-expected 216,000 jobs, the U.S. Labor Department said.

Also, the U.S. unemployment rate dropped to 8.8% from 8.9%. A Bloomberg survey had expected the economy to create 200,000 jobs in March and the unemployment rate to remain unchanged at 8.9%. Further, job creation totals for February and January were revised higher: February to 194,000 from the initially estimated 192,000 gain; January to 68,000 from 63,000.

Continue reading Ray of Light: March's Jobs Gain Is More Evidence of Healing Labor Market

Ray of Light: March's Jobs Gain Is More Evidence of Healing Labor Market originally appeared on BloggingStocks on Sun, 03 Apr 2011 10:10:00 EST. Please see our terms for use of feeds.

Continue reading Is IBM Headed to $200 and Beyond?

Is IBM Headed to $200 and Beyond? originally appeared on BloggingStocks on Wed, 30 Mar 2011 09:30:00 EST. Please see our terms for use of feeds.

This past week's data point of significance for investors has to be the revised, final, fourth quarter U.S. GDP report, which indicated the world's largest economy grew 3.1% in the quarter, as well as 2.9% for 2010.

In 2009, the U.S. economy contracted 2.6% during the Great Recession -- the worst downturn since the Great Depression -- and even though the final 3.1% fourth quarter stat was better than the 2.8% previously estimated fourth quarter growth rate, the growth pace still is not strong enough.

Continue reading Inadequate Q4 U.S. GDP Growth Points to Fed's Extension of QE2

Inadequate Q4 U.S. GDP Growth Points to Fed's Extension of QE2 originally appeared on BloggingStocks on Sun, 27 Mar 2011 10:10:00 EST. Please see our terms for use of feeds.

This past week's data point of significance for investors has to be the February nonfarm payroll report by the U.S. Department of Labor, which indicated that the U.S. economy created 192,000 jobs last month -- roughly in-line with the consensus estimate.

The good news was complemented by the fact that January's job gain was revised up to 63,000 from 36,000 and December's to 152,000 from 121,000. January's low job tally was probably skewed lower by the winter blizzards and storms that hit the Northeast and Midwest; hence, it's safe to say that the economy is creating jobs. What it needs now is sustained demand to drive GDP growth, which will lead to stronger job growth.

Continue reading Ray of Light: U.S. Private Sector Hiring Increases

Ray of Light: U.S. Private Sector Hiring Increases originally appeared on BloggingStocks on Sat, 05 Mar 2011 15:10:00 EST. Please see our terms for use of feeds.

The most recent datapoint of significance for investors has to be the U.S. Federal Reserve's revised summary of economic projections.

The Fed now sees a stronger U.S. economy in 2011, with the world's largest and most technologically advanced economy expected to grow 3.4% to 3.9%, up from the 3.0% to 3.6% November projection.

The Fed also expects the U.S. economy to grow 3.5% to 4.4% in 2012 and 3.7% to 4.6% in 2013, compared to the November estimates of 3.6% to 4.5% and 3.5% to 4.6%, respectively.

Continue reading Ray of Light: Fed Sees Adequate U.S. GDP Growth for 2011-2013

Ray of Light: Fed Sees Adequate U.S. GDP Growth for 2011-2013 originally appeared on BloggingStocks on Sat, 26 Feb 2011 12:50:00 EST. Please see our terms for use of feeds.

Retailer Kohl's Corp. (KSS) shares have retreated slightly since hitting a high near $58, but just look on that dip as an opportunity to scoop up shares.

Kohl's is a retail sector winner amid the most challenging economic conditions for retailers in decades.

Kohl's same-store sales will likely increase about 5% to 6% in this year, FY2012, along with decent traffic. Kohl's also plans to open about 40 new stores. How many other retail chains are opening stores in a big way in 2011? Very few.

Continue reading Kohl's: Retail Sector Survivor and Winner

Kohl's: Retail Sector Survivor and Winner originally appeared on BloggingStocks on Mon, 21 Feb 2011 11:00:00 EST. Please see our terms for use of feeds.

The past week's data-point-of-consequence for investors had to be investment decisions by Warren Buffett's Berkshire Hathaway (BRK.A).

Buffett ended positions in several stocks in the fourth quarter, including the Bank of America (BAC), Nike (NKE), Fiserv (FISV), Becton Dickinson (BDX), Comcast Corp. (CMCSA), Lowe's Co.s (LOW), Nalco (NLC) and Nestle (NSRGY), according to a filing, The Wall Street Journal reported.

Berkshire added to a holding of only one stock in the fourth quarter: Wells Fargo (WFC).

Continue reading Tell-Tale Stat: Buffett's Berkshire Divests Bank of America, Nike Stakes

Tell-Tale Stat: Buffett's Berkshire Divests Bank of America, Nike Stakes originally appeared on BloggingStocks on Sat, 19 Feb 2011 14:00:00 EST. Please see our terms for use of feeds.

If you think the economic recovery is just beginning, then these three stocks will benefit. They've just released their earnings so you can see how they've fared even in these tough times. They all share positive attributes: plenty of cash, growing sales and earnings, and a dividend.

General Electric (GE): This stock has been a frustration for years. It cut the dividend. The price went from $38 a share to $8 from 2008 to 2009. Now it's coming back. The latest quarterly and annual reports for 2010 confirm the company's finally seeing better demand for most of its products and services.

GE mirrors the economy because it's in so many different parts of it. Here are only some of its offerings: jet engines, light bulbs, credit, mortgage finance, appliances, power plants, locomotives, electric distribution and control equipment, generators and turbines, real estate, commercial finance, aircraft leasing, NBC Universal, health care and several more. When the economy does well, so does GE.

Continue reading Comfort Zone Investing: Ride the Recovery with These Three Stocks

Comfort Zone Investing: Ride the Recovery with These Three Stocks originally appeared on BloggingStocks on Sat, 29 Jan 2011 10:30:00 EST. Please see our terms for use of feeds.

After a torrid year, the commodities markets showed some weakness is January. For example, gold fell by about 6%.

So is this a correction or finally a bear market?

Well, legendary investor, Jim Rogers, still thinks that commodities are the best place for your investment dollars (according to an interview on CNBC). No doubt, he has lots of credibility. When others snickered, Rogers started to invest in commodities in the late 1990s. He even wrote a book on the topic.

Continue reading Jim Rogers Is Still a Big-Time Commodities Bull

Jim Rogers Is Still a Big-Time Commodities Bull originally appeared on BloggingStocks on Thu, 27 Jan 2011 11:00:00 EST. Please see our terms for use of feeds.

Continue reading Holiday Sales Falling Short of Expectations

Holiday Sales Falling Short of Expectations originally appeared on BloggingStocks on Thu, 06 Jan 2011 12:00:00 EST. Please see our terms for use of feeds.

Just as we are hearing that retailers had a great December, we get news from the Conference Board that U.S. consumer confidence dropped to 52.5 in December. Expectations had been for an increase to 56.9, making for quite a disparity between expectation and reality.

The director of the Conference Board's consumer research center, Lynn Franco, noted that "Consumers' assessment of the current state of the economy and labor market remains tepid, and their outlook remains cautious." Franco added that signs suggest continuing growth for the economy, "but that the pace of growth will remain moderate."

Continue reading Consumer Confidence Drops in December

Consumer Confidence Drops in December originally appeared on BloggingStocks on Tue, 28 Dec 2010 12:00:00 EST. Please see our terms for use of feeds.

Thursday morning, the Commerce Department announced that orders for U.S.-made durable goods dropped during November, falling 1.3% for the month. The drop was larger than the expected drop of 0.5%.

Taking transportation out of the picture, new orders increased by 2.4%, showing that the major drag on the data was transportation-equipment orders. Core durable-goods orders (which exclude defense and aircraft) increased 2.6%, a far better performance than the 3.6% decline in October. Analysts at Barclay's Capital called for a gain in core capital goods that reflect, "further expansion in the manufacturing sector."

Continue reading Durable Goods Orders Drop in November

Durable Goods Orders Drop in November originally appeared on BloggingStocks on Thu, 23 Dec 2010 12:00:00 EST. Please see our terms for use of feeds.

As noted in September, broadband/bandwidth play Ciena's (CIEN) pop back above the key, 50-day moving average was a good omen, and the stock has since rocketed up to about $21, taking out psychological resistance at $20.

Ciena, first discussed here on May 19, 2009, at a price of $11.27, remains on track to post a roughly 50% increase in revenue in FY2011, after a likely 80% to 90% increase in FY2010, aided by revenue from its $521 million acquisition of Nortel's Metro Ethernet Networking business in March.

Continue reading Ciena Shoots Higher

Ciena Shoots Higher originally appeared on BloggingStocks on Mon, 20 Dec 2010 12:30:00 EST. Please see our terms for use of feeds.

Continue reading Fed Holds Rates Steady, Surprises No One

Fed Holds Rates Steady, Surprises No One originally appeared on BloggingStocks on Tue, 14 Dec 2010 17:20:00 EST. Please see our terms for use of feeds.

In my new book, The Age of Deleveraging: Investment Strategies for an Era of Slow Growth and Deflation, I discuss nine reasons for slow U.S. economic growth and real GDP gains of about 2% annually in the long run.

1. U.S. consumers will shift from a 25-year borrowing-and-spending binge to a saving spree. This will spread abroad as American consumers curtail the imports of the goods and services many foreign nations depend on for economic growth.

Continue reading Nine Reasons for Slow U.S. Economic Growth

Nine Reasons for Slow U.S. Economic Growth originally appeared on BloggingStocks on Fri, 10 Dec 2010 12:30:00 EST. Please see our terms for use of feeds.

This morning, my colleague Connie Madon reported that initial jobless claims showed a disappointing gain of just 39,000 jobs and an unemployment rate at a seven-month high of 9.8%. Remember that the Street expected job growth of 144,000. This disappointing data has helped push the Dow Jones as we head through the lunch hour. I wanted to take a look at a couple tidbits of news from the report, one that I find especially disturbing.

Continue reading Unemployment Data Is Disturbing, Underemployment Numbers Are Staggering

Unemployment Data Is Disturbing, Underemployment Numbers Are Staggering originally appeared on BloggingStocks on Fri, 03 Dec 2010 16:00:00 EST. Please see our terms for use of feeds.

Fewer business start-ups are being launched, reports the the Wall Street Journal. The Labor Department said that the number of companies with at least one employee fell by 100,000, or 2%, in the year ended March 31. That was the second worst performance in 18 years -- the worst one was a drop of 3.4% the previous year.

Why are these numbers important? In past recessions small business start-ups were the key to spurring the economy. In the three quarters that ended in March, newly formed companies created only 2.6 million jobs, 15% fewer than in the first three quarters of the last recovery.

Continue reading Fewer Small Business Start-Ups Mean Fewer Jobs

Fewer Small Business Start-Ups Mean Fewer Jobs originally appeared on BloggingStocks on Sun, 21 Nov 2010 11:10:00 EST. Please see our terms for use of feeds.

U.S. Federal Reserve Chairman Ben Bernanke gave his reasons for more quantitative easing, dubbed QE2, in a speech at the Federal Reserve Bank of Boston, and reported in the Wall Street Journal.

The linchpin of his thesis is that inflation is too low, currently running at 1.1%. This is lower than the 2% level that the Fed had previously set.

Bernanke gave a rather gloomy assessment of the economy, saying that business spending has slowed, consumer finances are improving unevenly, housing remains depressed and job growth isn't enough to bring down unemployment.

Continue reading Bernanke: Inflation Too Low and Economic Growth Too Slow

Bernanke: Inflation Too Low and Economic Growth Too Slow originally appeared on BloggingStocks on Fri, 15 Oct 2010 12:30:00 EST. Please see our terms for use of feeds.

Continue reading Crude Oil Inventories Unexpectedly Rise

Crude Oil Inventories Unexpectedly Rise originally appeared on BloggingStocks on Wed, 06 Oct 2010 13:40:00 EST. Please see our terms for use of feeds.

According to the International Monetary Fund (IMF), the global financial system may be the biggest hindrance to a worldwide economic recovery. The IMF used its global financial stability report to make this announcement, one that suggests there isn't a lot of stability thanks mainly to the global financial system.

The IMF estimated that the writedowns attributed to the credit crisis were $2.2 trillion, lower than the $2.3 trillion originally projected in April.

Continue reading IMF: Global Financial System Hinders Economic Recovery

IMF: Global Financial System Hinders Economic Recovery originally appeared on BloggingStocks on Tue, 05 Oct 2010 11:00:00 EST. Please see our terms for use of feeds.