U.S. stocks, which earlier in the week recorded one of their biggest gains of the year, were in retreat by Friday, losing ground after weaker-than-expected U.S. jobs numbers and amid fresh concerns about eurozone sovereign debt. The euro dropped to its lowest level in four years after investors resumed their flight from riskier assets following a Hungarian senior official's warning that the country is in the midst of a Greece-like sovereign credit crisis.
U.S. economic news
Payrolls rise less than expected; unemployment falls to 9.7%
Payrolls rose by 431,000 in May after a 290,000 increase in April. The gain was smaller than expected and reflected a 411,000 jump in government hiring of temporary help for the 2010 census. At the same time, the unemployment rate fell to 9.7% as Americans suspended their job searches.
Payrolls rose by 431,000 in May after a 290,000 increase in April. The gain was smaller than expected and reflected a 411,000 jump in government hiring of temporary help for the 2010 census. At the same time, the unemployment rate fell to 9.7% as Americans suspended their job searches.
Manufacturing continues rebound
U.S. manufacturing grew at a solid pace in May as export orders continued to expand rapidly. The Institute for Supply Management reported that an index of export orders within its manufacturing report rose to 62 in May, its highest level since 1988. Nonmanufacturing activity also grew in May at the same pace as it did in April. That growth is an indication that the recovery that began in the manufacturing sector has broadened.
U.S. manufacturing grew at a solid pace in May as export orders continued to expand rapidly. The Institute for Supply Management reported that an index of export orders within its manufacturing report rose to 62 in May, its highest level since 1988. Nonmanufacturing activity also grew in May at the same pace as it did in April. That growth is an indication that the recovery that began in the manufacturing sector has broadened.
Auto sales rise
U.S. auto sales rose for the seventh month in a row in May on the strength of big gains in most car markets.
U.S. auto sales rose for the seventh month in a row in May on the strength of big gains in most car markets.
U.S. and global corporate news
Fitch and Moody's downgrade BP
On Thursday, both Fitch Ratings and Moody's Investor Services downgraded BP's long-term credit rating one notch. The agencies warned that further downgrades are possible as the company's liability for the oil spill in the Gulf of Mexico escalated into billions of dollars and it faced a criminal investigation in the United States.
On Thursday, both Fitch Ratings and Moody's Investor Services downgraded BP's long-term credit rating one notch. The agencies warned that further downgrades are possible as the company's liability for the oil spill in the Gulf of Mexico escalated into billions of dollars and it faced a criminal investigation in the United States.
May same-store sales encouraging
May same-store sales reports were encouraging despite the still uneven nature of the U.S. economic recovery. Costco Wholesale reported that same-store sales rose 9% as net sales climbed 11%. Target's same-store sales rose 1.3% and those at Saks' rose 5.8%. Sales at teen retailers American Eagle Outfitters, Buckle, and Hot Topic all fell more than expected.
May same-store sales reports were encouraging despite the still uneven nature of the U.S. economic recovery. Costco Wholesale reported that same-store sales rose 9% as net sales climbed 11%. Target's same-store sales rose 1.3% and those at Saks' rose 5.8%. Sales at teen retailers American Eagle Outfitters, Buckle, and Hot Topic all fell more than expected.
Whirlpool recalls dishwashers
Whirlpool announced a recall of 1.7 million dishwashers from its Maytag unit because of a potential fire hazard. Besides Maytag, the brands under the recall include Jenn-Air, Amana, and Crosley.
Whirlpool announced a recall of 1.7 million dishwashers from its Maytag unit because of a potential fire hazard. Besides Maytag, the brands under the recall include Jenn-Air, Amana, and Crosley.
Anadarko affirms outlook; Lukoil profits double
Even though the company has suspended its deepwater drilling in the Gulf of Mexico in compliance with the U.S. government's six-month ban on drilling in the Gulf, Anadarko Petroleum affirmed its 2010 production, sales volume, and capital spending plans for the year. Russia's largest privately owned producer, OAO Lukoil Holdings, reported that its first-quarter profit more than doubled from a year ago after rising crude prices offset falling production from its western Siberian fields.
Even though the company has suspended its deepwater drilling in the Gulf of Mexico in compliance with the U.S. government's six-month ban on drilling in the Gulf, Anadarko Petroleum affirmed its 2010 production, sales volume, and capital spending plans for the year. Russia's largest privately owned producer, OAO Lukoil Holdings, reported that its first-quarter profit more than doubled from a year ago after rising crude prices offset falling production from its western Siberian fields.
Global economic news
Credit default swaps on sovereign bonds surge
Credit default swaps on sovereign bonds surged on speculation that Europe's debt crisis is worsening after Hungary said it is in a grave economic situation after the previous government manipulated figures and lied about the state of the economy.
Credit default swaps on sovereign bonds surged on speculation that Europe's debt crisis is worsening after Hungary said it is in a grave economic situation after the previous government manipulated figures and lied about the state of the economy.
Bank of Canada hikes rates
Given the strength of its economy, Canada this week became the first G-7 country to raise interest rates. The Bank of Canada raised its key overnight rate by 0.25% to 0.50% but refrained from indicating that this hike was the first in a series.
Given the strength of its economy, Canada this week became the first G-7 country to raise interest rates. The Bank of Canada raised its key overnight rate by 0.25% to 0.50% but refrained from indicating that this hike was the first in a series.
Kan becomes Japanese prime minister
Naoto Kan took over as Japan 's prime minister this week after lawmakers from the ruling Democratic Party of Japan elected him premier. Kan , who was finance minister in the last cabinet, said he is working on a new strategy to rein in the world's largest public debt (as a percentage of gross domestic product) and safeguard economic growth ahead of midterm elections next month.
Naoto Kan took over as Japan 's prime minister this week after lawmakers from the ruling Democratic Party of Japan elected him premier. Kan , who was finance minister in the last cabinet, said he is working on a new strategy to rein in the world's largest public debt (as a percentage of gross domestic product) and safeguard economic growth ahead of midterm elections next month.
German government agrees to block short-selling
The German government agreed to block the speculative "naked" short-selling of German stocks and eurozone sovereign bonds.Germany shocked European Union partners and markets last month when it first introduced unilateral measures.
The German government agreed to block the speculative "naked" short-selling of German stocks and eurozone sovereign bonds.Germany shocked European Union partners and markets last month when it first introduced unilateral measures.
Europe's services and manufacturing slows less than expected
Growth in Europe 's service and manufacturing industries slowed at a pace that was less than initially estimated for May. The growth was welcome news as the outlook for the region's economy has dimmed in recent months with the threat of contagion from the Greek debt crisis raising concerns about the region's future.
Growth in Europe 's service and manufacturing industries slowed at a pace that was less than initially estimated for May. The growth was welcome news as the outlook for the region's economy has dimmed in recent months with the threat of contagion from the Greek debt crisis raising concerns about the region's future.
Australian exports surge most in three decades
Australian exports, excluding farm goods, surged by the most in almost three decades in April as shipments of iron ore and coal to China pushed the trade balances to a surplus for the first time in 12 months.
Australian exports, excluding farm goods, surged by the most in almost three decades in April as shipments of iron ore and coal to China pushed the trade balances to a surplus for the first time in 12 months.
Pakistan central bank head quits amid economic strain
Pakistan 's central bank governor Syed Salim Raza resigned Thursday. His departure raises concerns about the nation's economic management at a time when the government is grappling with a shortage of financial resources amid rising war costs.
Pakistan 's central bank governor Syed Salim Raza resigned Thursday. His departure raises concerns about the nation's economic management at a time when the government is grappling with a shortage of financial resources amid rising war costs.
