Stocks kick off August with a rally
It was back to black for stocks on Monday. Strong bank profits and hopes for rising demand in raw materials lifted all three major indices to their highest levels since November. The Nasdaq and S&P 500 both crossed major milestones. The session started off on a good note following news that the Institute for Supply Management's manufacturing index rose to 48.9 in July from 44.8 in June. Car sales added to bets that the economy is starting to stabilize and contributed to today's advance. Profit reports have been topping expectations across the board. Humana posted higher quarterly earnings that topped estimates. Tyson Foods Inc.'s reported a much larger quarterly profit led by a big gain in its chicken unit. Treasury prices tumbled as investors shifted focus to the stock market. The dollar fell to the lowest level since weeks after Lehman collapsed.
Has the Market Gotten Ahead of the Recovery?
Latest Buzz
Apple and Google Inc. CEO Eric Schmidt severed ties today. Steve Jobs said in a press release that the exec quit the board because of the growing overlap of the two companies' businesses. Could this have something to do with Apple rejecting Google Voice and related applications? Or maybe this is a result of the FCC's inquiry into the whole situation? Whatever the reason, many suggested that Schmidt's resignation was inevitable .
Why Eric Schmidt Had To Go
5 Reasons Schmidt Left Apple Board
Video - Apple vs. Google
Some automakers reported better-than-expected sales in July thanks to a boost in demand sparked by the government's Cash for Clunkers trade-in program. Ford was among the automakers reporting an increase in sales . Honda Motor Co. was not as fortunate and reported that sales declined 17 percent. Nearly half the vehicles sold under the incentive program have been from American manufacturers.
Despite the frenzy, is the 'cash for clunkers' program really a good idea ? Should the Senate approve another $2B to keep it alive?
Video - Clunkers Revving up the Auto Market
Bank of America shook up things a bit today and said that former Citigroup Inc. Chief Financial Officer Sallie Krawcheck is taking charge of the global wealth and investment management operations. While Ken Lewis was busy shuffling around execs, the SEC charged BofA with lying to investors and slapped the company with a $33 million fine . Oh by the way, Anthony Cuomo still has questions regarding bonuses paid to Merrill Lynch employees. Good luck Ms. Krawcheck! Hopefully you can handle the rough roads ahead.
Video - Succession in BofA's Management Moves?
Crashing the economy and fleecing the taxpayer wasn't enough. Now Wall Street is rewarding bad actors .
How's the Economy Doing?
A new look at the nation's manufacturing sector from the Institute for Supply Management shows more contraction , but signs of economic recovery. The industry is finally seeing some results from the federal government's $787 billion fiscal stimulus package. At least Americans can see that all the money is not being spent on extremely expensive signs .
Oil prices are on the rise again. This means some good and bad news . Rising energy prices are a sign that the economy is improving, but have the potential to jeopardize chances for a recovery.
When Does a Depression or a Recession End?
The Federal Reserve chairman is lobbying to keep his job, but his response to the financial crisis has been exceptionally poor. Let's explore Ben Bernanke's failure at the Fed.
Other Juicy Tidbits
Nissan is not giving up that easy. The Japanese carmaker unveiled its first electric car , which is actually not that bad. Shares of the company rose to t he highest level in 10 months, so investors must be digging the new car.
To get the economy back on track, will President Barack Obama have to break his pledge not to raise taxes on 95 percent of Americans? Over the weekend, comments from Treasury Secretary Timothy Geither suggested that this may be a possibility. Well Timmy's boss is saying otherwise today.
The long, hard process of rebuilding General Motors after bankruptcy begins this week. It's back to business for the bankrupt automaker.
Check out this open letter to Ruth Madoff.
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