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Oil Closes Above $80

rising oil pricesOver the past week, oil prices have been flirting with the psychological $80 barrier, and they were finally able to settle above $80 Wednesday. Oil traded up $1.26 a barrel to $80.94.

Earlier today, we got the weekly inventory report from the Department of Energy, which showed a greater-than-expected jump in reserves last week. The report showed that oil inventories grew by four million barrels, which was well above the one-million-barrel increase that analysts had forecast.

Continue reading Oil Closes Above $80

Four reasons we're stuck with high unemployment for a while

Some of the jobs that have disappeared through this recession are gone forever, it seems. Even when the market turns, and even gains momentum, we could be stuck with a fairly weak employment market for a while. The recovery will take longer than we'd like, putting more distance between now and the top of the next market run. We've lost 7.2 million jobs since December 2007, and the predictions of some economists that we'll get them back by 2014 may actually seem optimistic.

Unemployment is at 9.8%, and it's expected to clear 10% early next year. Then, we have the specter of a jobless recovery with which to contend. "Full employment" is often considered to be an unemployment rate of 4% to 5%, but it could be a while before we get there. The last downturn, following the dotcom bust, resulted in a peak unemployment rate of 6.3% in 2003 ... and we're already well past that.

Why is the recovery going to be such a grind? Check out the four major reasons after the jump.

Continue reading Four reasons we're stuck with high unemployment for a while

Pfizer reports solid quarterly earnings thanks to cost-cutting maneuvers

On Tuesday, Pfizer (NYSE: PFE) stepped into the earnings spotlight, announcing a higher third-quarter profit compared to last year. The pharmaceutical firm earned 43 cents per share, or 51 cents per share in adjusted earnings. A year ago, PFE earned 34 cents per share before item exclusions. The Street expected PFE to report third-quarter earnings of 48 cents per share excluding items.

Quarterly revenue checked in at $11.62 billion, 3% lower than last year's third-quarter revenue. Revenue was pulled roughly 5% lower due to unfavorable foreign exchange rates.

Continue reading Pfizer reports solid quarterly earnings thanks to cost-cutting maneuvers

Unemployment rate hits 9.8%

Unemployment is at its highest level since 1983, hitting 9.8% last month. The Department of Labor announced that 263,000 jobs were lost. This follows a revised loss of 201,000 jobs in August (lower than first reported). Nobody expected the August unemployment reprieve to last, and the increase suggests that the forecasted 10.3% unemployment rate for early next year will be realized.

Originally, the forecasted unemployment drop for September was 175,000, according to Bloomberg News, with individual economists surveyed reporting in a range of 100,000 to 260,000.

Continue reading Unemployment rate hits 9.8%

New jobless claims drop last week

jobless claimsWe got a bit of surprising news today, hearing that new jobless claims fell to 530,000 last week.

Going into today's announcement from the Department of Labor, analysts had been expecting to see an increase of 5,000 new jobless claims last week. This marks the third week in a row that we have seen new jobless claims fall.

Continue reading New jobless claims drop last week

Job cuts slow in August, more not-so-bad news

The Automatic Data Processing (ADP) employment report was released before the opening bell Wednesday morning, showing that the private sector lost 298,000 jobs during August. Expectations called for a loss of 255,000 jobs, but the loss was better than the revised 360,000 jobs lost during July.

A spokesperson for ADP noted a "gradual improvement in labor markets" because "monthly losses are diminishing." That said, the group did note that job losses are likely to continue for "several more months."

In addition to this news, Challenger Gray & Christmas reported that layoffs planned by major U.S. corporations fell 21% from July to August. The 76,456 layoffs in August were the second-lowest amount cut in 2009.

Continue reading Job cuts slow in August, more not-so-bad news

Unemployment rate hits 9.4% in May

Unemployment data may 2009Unemployment continues to be on the minds of most Americans, and in May the level of unemployment nation wide jumped again, up to 9.4%.

We are now sitting at levels of unemployment that we have not seen since all the way back to 1982, as another 345,000 jobs were lost last month. The good news is that this was much lower than the figure that analysts had been forecasting.

Continue reading Unemployment rate hits 9.4% in May

Job losses slowed during May

According to Challenger, Gray & Christmas, job losses slowed during May for the the fourth straight month. The report showed that job cuts totaled 111,182 during May, 16% better than the 132,590 jobs cut in April. May's total was the lowest since last September, but was still 7.4% higher than a year ago.

The greatest amount of layoffs came from the government/non-profit sector for the third-straight month. The second largest amount of cuts came from the computer sector, followed by the chemical and automotive industries.

Continue reading Job losses slowed during May

JockStocks: Nike eliminating jobs -- potential exists

Is Northwest shoe behemoth Nike (NYSE: NKE) starting to feel the sting of the economic crisis? It certainly appears that way with the company announcing that it will cut 1,750 jobs, or roughly 5% of its total work force. The cuts are the largest in the company's history, and roughly 500 of the positions will be eliminated from Nike's Oregon headquarters, which employs more than 3,000. A majority of these cuts will occur over the next week.

Nike is making the move in hopes of cutting costs and boosting competitiveness, which I will address in a moment. Back in February, Nike hinted that a review of its operations would result in a 4% cut to the firm's staff. Furthermore, the athletic apparel and footwear firm has cut production at Chinese and Vietnamese factories, cut marketing spending, and has reorganized its global business into six geographically based groups. All of these moves have been made to help the company deal with the current economic slowdown and its impact on the consumer.

Continue reading JockStocks: Nike eliminating jobs -- potential exists

Private aviation firms suffer, time for a pity party

Here's one that people are also trying to blame on executives at the Big Three automakers -- the private aviation industry is hurting. Can you hear the violins starting?

Reportedly, corporate "giants ranging from Bank of America to Time Warner are grounding planes," thanks to the faltering economy and public outcry.

How can this be traced back to the automakers? The public outrage really started when the CEOs of the automakers eschewed a more economical style of transport for the lush trappings of their private jets when they were headed to Capitol Hill.

Continue reading Private aviation firms suffer, time for a pity party

A peek at Yahoo ahead of earnings

Back on tax day, my friend and colleague Elizabeth Harrow wondered if Yahoo! (NASDAQ: YHOO) would announce job cuts when it reports earnings tomorrow. Ms. Harrow looked at a report in The New York Times about preparations for a "significant round of layoffs" and then took a look at the option activity on the Internet search portal a week ahead of earnings.

Something that Elizabeth noted was the fact that the 15 strike was going to assume the mantle of peak call open interest when the market opens for trading festivities today. This level could be a major sticking point for the stock, as Yahoo hasn't closed atop the $15 level since late 2008.

Continue reading A peek at Yahoo ahead of earnings

National Semiconductor announces Q3 earnings, job cuts

At roughly 7:30 AM EST, National Semiconductor (NYSE: NSM) released its third-quarter earnings report. The semiconductor company announced earnings of 9 cents per diluted share -- down from 16 cents per share in the second quarter.

In last year's third quarter, NSM reported earnings per diluted share of 29 cents per share. According to MarketWatch, the Street expected NSM to post a loss of 5 cents per share. Quarterly revenue dropped to $292 million, short of the consensus estimate of $296.8 million.

Continue reading National Semiconductor announces Q3 earnings, job cuts

HSBC announces earnings and U.S. closings; more pain to come

In the infamous words of Rod Roddy, HSBC Holdings (NYSE: HBC) come on down! You're next on the Earnings are Falling (or The Price is Wrong if you like).

The banking firm announced this morning that its 2008 profit fell some 70%, which is prompting the firm to halt most of its U.S. consumer lending business. HSBC's net profit fell to $5.73 billion from $19.13 billion a year ago. In North America, HSBC took a goodwill charge of $10.6 billion stemming from the restructure of the region. Taking this charge out of the equation, HSBC's profit dropped 18% to $19.9 billion. Experts had expected a pretax profit of roughly $20 billion.

Continue reading HSBC announces earnings and U.S. closings; more pain to come

Symbol Lookup
IndexesChangePrice
DJIA-74.9212,454.83
NASDAQ-1.852,837.53
S&P 500-2.861,317.82

Last updated: May 28, 2012: 11:49 AM

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