Although the U.S. economy has added jobs in recent months, the unemployment rate remains uncomfortably high at 9.8%. The rate for December is due out on Friday and is expected to drop to 9.7%. However, no one seems to expect significant improvement until well into the new year.

Other economic data on this week's schedule include:

• Monday: ISM Manufacturing Index, construction spending and auto sales data

Continue reading Week in Preview: Unemployment Rate, Retail and Auto Sales

Week in Preview: Unemployment Rate, Retail and Auto Sales originally appeared on BloggingStocks on Sun, 02 Jan 2011 12:30:00 EST. Please see our terms for use of feeds.

Continue reading Pre-Market Outlook: U.S. Futures Higher on Strong China Production Data

Pre-Market Outlook: U.S. Futures Higher on Strong China Production Data originally appeared on BloggingStocks on Wed, 01 Dec 2010 08:50:00 EST. Please see our terms for use of feeds.

Little bit of bad news coming out of Philadelphia, and it has nothing to do with Eagles' quarterback Kevin Kolb's concussion. The Federal Reserve Bank of Philadelphia announced that its manufacturing index checked in at -0.7, which is better than August's reading of -7.7. Unfortunately, the reading was short of expectations for a reading of 0.0.

According to the Philly Fed, "The survey's broad indicators of future activity continue to suggest that the region's manufacturing executives expect growth in business over the next six months, but optimism remains below levels earlier in the year." This is not good news for an economy that many think is on the road to recovery.

Continue reading Philly Fed Survey Declines for Second-Straight Month

Philly Fed Survey Declines for Second-Straight Month originally appeared on BloggingStocks on Thu, 16 Sep 2010 12:20:00 EST. Please see our terms for use of feeds.

Investors nervous about the possibly stalled economic recovery -- or worse, the beginning of the latter phase of a double-dip recession -- were not pleased with last week's housing numbers. Things were perhaps ameliorated somewhat by durable goods order numbers and a revised GDP that weren't as bad as expected, but that didn't stop the Dow from dipping below 10,000 later in the week, before fighting its way back above the benchmark to end the week, thanks largely to Fed chair Bernanke's comments on Friday.

Though the end of August is usually quiet, this week lots more economic data are due out, including more housing numbers: The Case-Shiller Home Price Index for June on Tuesday, construction spending numbers for July on Wednesday, and NAR's pending home sales for July on Thursday. There's not expected to be much to get excited about in these numbers.

Continue reading The Week in Preview: Employment, Housing, Manufacturing, Earnings Expectations

The Week in Preview: Employment, Housing, Manufacturing, Earnings Expectations originally appeared on BloggingStocks on Sun, 29 Aug 2010 12:30:00 EST. Please see our terms for use of feeds.

Continue reading Manufacturing Down for a Third Straight Month

Manufacturing Down for a Third Straight Month originally appeared on BloggingStocks on Mon, 02 Aug 2010 18:00:00 EST. Please see our terms for use of feeds.

Thursday morning, Merck & Co. (MRK) announced that it would shut down eight manufacturing plants and eight research sites around the world, along with consolidating some of its offices.

Merck notes that these moves are part of the ongoing consolidation triggered by the acquisition of Schering-Plough last November. The acquisition made Merck the second-biggest pharmaceutical firm in the world. That said, the company is going to eliminate roughly 15% of its workforce (which comes out to 16,000 jobs) in order to save roughly $3.5 billion a year.

Continue reading Merck to Close Eight Plants

Merck to Close Eight Plants originally appeared on BloggingStocks on Thu, 08 Jul 2010 10:50:00 EST. Please see our terms for use of feeds.

Tuesday's positive data point (actually two), came from the heart of the U.S. economy: the factory sector's recover continued in May, and construction spending unexpectedly rose in April.

Of the two, the market's bulls will likely cheer the Institute for Supply Management's manufacturing index more: it came in at 59.7, a slight dip from April's feverish pace of 60.4, but still above the Bloomberg News consensus estimate of 59.5. Readings over 50 indicate an expansion.

Continue reading Ray of Light: Factory, Construction Stats Confirm Ongoing Expansion

Ray of Light: Factory, Construction Stats Confirm Ongoing Expansion originally appeared on BloggingStocks on Tue, 01 Jun 2010 14:40:00 EST. Please see our terms for use of feeds.

On April 26, the long anticipated Senate climate bill is slated for its debut. Climate change talking points aside, how powerful a piece of legislation will this bill turn out to be for investors, and what could be its effects on manufacturing, retail and energy stocks?

For the sake of discussion, let's just assume that the bill will pass and become law. The first thing to understand is that it's not much more than an act of taxation. That new tax will be levied against businesses large and small via carbon offsets. They'll be showing up on balance sheets everywhere. Granted, we all know that businesses hand their tax bills down line to the consumers, but for large corporations and conglomerates, it's certain that the documentation and accounting will be more than a little distracting. Of course some business giants will be able to simply buy their way out from under the mess.

Continue reading Five Days Left to Deeply Consider Manufacturing and Energy Stocks

Five Days Left to Deeply Consider Manufacturing and Energy Stocks originally appeared on BloggingStocks on Wed, 21 Apr 2010 12:00:00 EST. Please see our terms for use of feeds.

Continue reading Tell-tale Stat: U.S. Factory Output Jumped In March

Tell-tale Stat: U.S. Factory Output Jumped In March originally appeared on BloggingStocks on Thu, 15 Apr 2010 17:00:00 EST. Please see our terms for use of feeds.

Continue reading When Will NBER Officially Declare End to U.S. Recession?

When Will NBER Officially Declare End to U.S. Recession? originally appeared on BloggingStocks on Tue, 06 Apr 2010 18:00:00 EST. Please see our terms for use of feeds.

Manufacturing expanded in March at the fastest pace since 2004. The Supply Management's factory index rose to 59.6. This exceed forecasts by Bloomberg News survey of 77 economists. Readings above 50 indicate expansion.

"Manufacturing is on a tear" said Chris Rupkey of bank of Tokyo-Mitsubishi. "Manufacturing driven growth and export driven growth are getting us out of the recession and turning the recovery into a more sustainable one. As production increases, it means job gains are going to spread."

Continue reading U.S. Manufacturing Experiences Largest Gain Since 2004

U.S. Manufacturing Experiences Largest Gain Since 2004 originally appeared on BloggingStocks on Thu, 01 Apr 2010 15:00:00 EST. Please see our terms for use of feeds.

Things are heating up quite nicely in the Chinese economy, and if news sources can be believed, the Chinese financial wizards seem to have things fairly well in hand. By face-value reckoning, it appears to be a good time to shift some investment capital towards China. But be warned, things can change on a moment's notice.

Industrial output is picking up in China. The government there reports better-than-expected export numbers. Banks are being pressured to cut back on lending because things have gotten so hot that inflation is now an approaching issue. The monetary mood of the general population is quickly shifting from a liquidity stance to an equity mode.

Continue reading Is It Time to Invest in China?

Is It Time to Invest in China? originally appeared on BloggingStocks on Mon, 15 Mar 2010 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Oil Lurches Toward $80, and Beyond ...

Oil Lurches Toward $80, and Beyond ... originally appeared on BloggingStocks on Thu, 18 Feb 2010 17:00:00 EST. Please see our terms for use of feeds.

China Investment Corp. (CIC), a sovereign wealth fund responsible for managing China's foreign exchange reserves, has disclosed to the SEC that its holdings in major U.S. companies now total $9.6 billion. According to reports, the fund totals nearly $2.5 trillion. Using that capital, and acting as a passive investor, CIC is buying minority positions in major companies. The stakes that CIC holds in major U.S. corporations represent small pieces by percentage, but the total investment to date is worthy of note.

Manufacturing.net has reported that CIC has disclosed the following: "... small holdings in dozens of companies including, $353.8 million in Visa Inc., $6.3 million in Apple Inc., $9 million in Coca-Cola Co. and $1.4 million in Goodyear Tire & Rubber Co. It also listed a $1.7 billion stake in Morgan Stanley." It should be noted that these are all minority holdings in publicly traded companies. Beijing is intentionally avoiding investments that might be deemed politically sensitive.

Continue reading Keeping an Eye on China's U.S. Investments, Manufacturing

Keeping an Eye on China's U.S. Investments, Manufacturing originally appeared on BloggingStocks on Wed, 10 Feb 2010 12:40:00 EST. Please see our terms for use of feeds.

Germany's industrial production has led the rebound in Europe. That was until the last quarter of 2009. In December, Germany's industrial production dropped 2.6% after rising 0.7% in November.

Germany supposedly turned the corner in the second quarter of 2009. But Alexander Koch, economist for Unicredit in Munich said: "The most vibrant part of the rebound" in industry was apparently over. One reason is that Germany ended subsidies to its auto industry recently.

Continue reading Germany, Linchpin of The Eurozone, Falters

Germany, Linchpin of The Eurozone, Falters originally appeared on BloggingStocks on Fri, 05 Feb 2010 18:30:00 EST. Please see our terms for use of feeds.

The Commerce Department reported that factory orders for December rose more than expected. Here are the numbers:

• Orders for durable goods rose 1%. The government had estimated a rise of 0.3% for December. Durables last for several years.
• Bookings for capital goods, a measure of future business investment, rose 2.2%, after a rise of 3.2%.
• Shipments of those goods rose 2.1%. These shipments are used to calculate GDP.
• The economy expanded 5.7% in the fourth quarter, the fastest pace in six years.
• Purchases of equipment and software increased 13%, the highest since 2006.
• On the negative side, new claims for unemployment rose to 480,000.
• The Institute for Supply Management report showed manufacturing in January expanded at the fastest pace in five years.
• Greater demand for notebooks and desktop computers fueled record sales for hard drives.

While these numbers are tame, the fact that we have slow, steady progress increases business and consumer confidence.

Much of the change in the economy is psychological. As we see steady improvement quarter over quarter, confidence gets restored, business replenishes inventories and consumers are buying again.

Do you believe that we are on the road to recovery?

Factory Orders Rose More Than Expected in December originally appeared on BloggingStocks on Thu, 04 Feb 2010 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: 2010 Off to Launch (BAC, BFRM, GOOG, AAPL, INTC, GE)

Closing Bell: 2010 Off to Launch (BAC, BFRM, GOOG, AAPL, INTC, GE) originally appeared on BloggingStocks on Mon, 04 Jan 2010 16:00:00 EST. Please see our terms for use of feeds.

You are probably wondering: "Is the economy really picking up?" That question is difficult to answer. Yes, we've had 2.2% growth in the third quarter. The Federal Reserve upgraded the economy by saying, "economic activity had continued to pick up."

U.S. Treasury Secretary Geithner sounded a reserved tone by saying that he did not expect positive job growth until next spring.

Continue reading Small U.S. Factories See Little or No Growth in 2010

Small U.S. Factories See Little or No Growth in 2010 originally appeared on BloggingStocks on Sat, 02 Jan 2010 14:00:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Santa and Eggnog Preside over Stocks (IBM, BRK.A, UAUA, FNM, FRE AAPL)

Closing Bell: Santa and Eggnog Preside over Stocks (IBM, BRK.A, UAUA, FNM, FRE AAPL) originally appeared on BloggingStocks on Mon, 28 Dec 2009 16:00:00 EST. Please see our terms for use of feeds.

Gains in new orders slowed In December, pointing to less demand in early 2010. This trend is normal after the holiday season.

Continue reading Philly Fed Index Rises to a Four-Year High

Philly Fed Index Rises to a Four-Year High originally appeared on BloggingStocks on Thu, 17 Dec 2009 16:20:00 EST. Please see our terms for use of feeds.