Traders Remain Cautious
Stocks struggled and lost ground on Wednesday as jittery investors continued to worry that the market rally happened too quickly. Major stock indexes spent most of the trading day moving between small gains but fell late in the session as banking stocks slipped. The Dow Jones Industrial Average lost 29.93 points and finished the day at 9,280.67. Investors mulled over two unemployment reports that signaled the pace of job cuts was moderating. The Labor Department said worker productivity grew at the fastest pace in nearly six years. This piece of news wasn't enough to spark a turnaround. The release of the minutes from the last Fed meeting also didn't provide much inspiration despite Fed officials remaining optimistic about the economy. In other news, Well Fargo (WFC) is set to repay the $25 billion in bailout funds it received under TARP. Danaher (DHR) announced another round of jobs cuts as part of its restructuring plan. U.S. light crude oil for October delivery fell 33 cents to $67.72 a barrel on the New York Mercantile Exchange. In currency trading, the dollar fell versus the euro and the Japanese yen.
Splashed Across Headlines
It's not surprising to find out that another drug maker has been slapped with a lawsuit, but a billion dollar settlement is not something you see every day. Pfizer Inc. (PFE) is the latest company agreeing to fork over some serious money to settle a case. The world's largest drug maker will pay a record $2.3 billion after being charged with illegally promoting certain drugs.
A day after saying that it would cut 42 round-trip flights, Southwest (LUV) has decided to upset flyers a little more. The airline announced that it will start charging passengers $10 each way to board flights before general check-in starts, but after premium passengers.
Nickel and Diming at Southwest Airlines?
The Commerce Department announced that new orders received by US factories rose a smaller-than-expected 1.3 percent in July . This number tells the story of inventory held by U.S. businesses, which can be erratic following a recession.
Casinos have been hit hard by this economic downturn. Places that use to attract millions of people from across the world are now forced to look at other options for improving financial stability. Las Vegas Sands Corp. (LVS), the world's largest casino company, has secured commitments to raise up to $600 million through the sale of exchangeable bonds.
Here comes some more not-so-bad jobs data. Two new reports from ADP and Challenger, Gray & Christmas indicate employment losses among private employers are "clearly diminishing" as the nation's nascent economic recovery gains ground.
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Mortgage applications slid last week even as mortgage rates edged lower and pending home sales increased .
It's careful, it's complicated, it's got a catchy name, and it's first. Goodbye Fannie (FNM) and Freddie (FRE), hello MCGE. A new government-guaranteed mortgage backed securities market may be in the works.
The Securities and Exchange Commission watchdog says regulators missed 'numerous' red flags that suggested a Ponzi scheme was underway. Tell us something that we didn't already know.
The Federal Reserve released minutes from its most recent meeting. Overall, the Fed's outlook on the economy brightened in August .
Major points from the meeting:
• Short-term interest rates will remain near zero
• Economy is expected to start growing in the second half of the year
• Officials are still concerned over the state of the labor market
Other Juicy Tidbits
Mainly a crisis produces losers. Those who were previously placed on a pedestal and praised for their intelligence are brought down to earth. With every set of losers comes a set of winners. Here are 25 individuals that came out on top following the financial crisis.
Twitter has been getting a lot of slack lately due to its lack of filtering. The microblogging site makes it too easy to get spammed with X-rated content, and too difficult to do something about it. Is Twitter Pimping Off-Color Content to Family Users?
Wages Of Depression : Lessons from Herbert Hoover
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You would think that everyone would be happy to see the recession come to an end. Believe it or not there are some people that want a long recession.
How to Invest in the 'New Normal'
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