Stocks Down Despite Labor Market Improvments

Weekly Wrap Up

Stocks ended down on this short week in the mrakets, as investors appeared to have inflated expectations of another round of quantitative easing from the Federal Reserve. These expectations were readjusted after the minutes of the latest meeting of the Federal Reserve Open Market Committee came out. Signs of a recovery do continue, however, as jobless claims are at a 4-year low and job creation appears to be picking up steam. More Market News

Economic News

Surprising Sears, Netflix Lead Best S&P 500 Start Since 1998
nvestors have been partying like it’s 1998.

The S&P 500 index is off to its best start in 14 years.
The red hot large-cap index jumped some 11.8% in the first-quarter. Click here to read the full article
Bank Stock Sales Bring $1 Billion in TARP Repayments to Treasury
The Capital Purchase Program (CPP), in which Treasury rushed to the aid of banks by buying preferred shares, was one of the central components of the TARP. Over the past few years, as banks have returned their capital, paid dividends and interest on the shares, and as Treasury has sold the warrants it received as part of the deal, cash has been coming back in bits and pieces. So much so that the CPP has officially been in the black for a few months, as this update shows. A total of $204.9 billion was disbursed in CPP and Treasury has received $212.16 billion back. Click here to read the full article
Fed Minutes Deflate Market Expectations of More Easing
“It’s just surprising that so many investors had expectations all over again that we would get an announcement that could indicate QE3,” said Zane Brown, fixed income strategist with Lord Abbett. Click here to read the full article
Businesses add jobs, service sector growth dips
Businesses added more than 200,000 jobs in March, giving fresh evidence of recovery in the labor market, data showed on Wednesday.

The ADP National Employment Report showed the private sector added 209,000 positions last month, slightly above economists' expectations for a gain of 200,000 jobs. Click here to read the full article

Business News

AT&T May Face Strike by Union Employees as Contracts’ End Looms
The Communications Workers of America is renegotiating four separate contracts with the largest U.S. phone company, all of which expire at 12:01 a.m. on April 8, said Candice Johnson, a CWA spokeswoman. On March 31, union members voted to authorize CWA to call strikes if new contracts can’t be reached. Click here to read the full article
25% pay cut for Morgan Stanley CEO
Morgan Stanley chief executive James Gorman's total compensation dropped by 25% in 2011, and none of the firms top executives took a cash bonus, according to a regulatory filing.
The drop in pay came during a year when Morgan Stanley (MS, Fortune 500)'s stock fell roughly 44%. Although shares have rebounded about 24% this year, Morgan Stanley's stock is still down more than 30% from the start of 2011. Click here to read the full article

Technology Focus

Pinterest co-founder steps down
Pinterest co-founder Paul Sciarra said late Monday that he is departing the suddenly super-hot startup.
Sciarra was listed in regulatory documents from 2010 as president and CEO of the company. That's a role co-founder Ben Silbermann has essentially taken on in recent months, though it's not clear if he officially holds the title. Click here to read the full article
Yahoo to lay off 2,000 employees
Yahoo Inc will lay off 2,000 people, or 14 percent of its workforce, in its deepest round of job cuts in years as new Chief Executive Scott Thompson tries to jumpstart growth with a leaner, more agile company while saving hundreds of millions of dollars. Click here to read the full article

Your Money

US unemployment claims hit 4-year low of 357K

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2012/04/05/national/w055026D60.DTL#ixzz1rHbjLRUI

The number of people seeking U.S. unemployment benefits fell to a four-year low last week, suggesting employers kept hiring in March at a healthy pace.

Weekly applications dropped 6,000 to a seasonally adjusted 357,000, the Labor Department said Thursday. That's the fewest since April 2008. Click here to read the full article
Obama Signs Bill Easing IPO Rules
President Barack Obama signed a law Thursday that eases an array of business regulations, particularly rules for initial public offerings, in what backers hope will help companies raise capital and boost job growth. Click here to read the full article
Published on Apr 6, 2012
By InvestorGuide Staff

Copyrighted 2016. Content published with author's permission.

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