Posts by Stacy Curtin
- Stacy Curtin at Daily Ticker3 mths ago
Today, the day before Thanksgiving, is the single busiest travel day of the year, according to AAA's annual travel outlook. But, as if right on cue, mother nature has unleashed a massive and deadly storm that is threatening travel this holiday.
More than 300 flights have been cancelled and nearly 1,000 have been delayed already today, according to Flightstats.com. That follows 284 cancellations yesterday and more than 6,500 delays.
AAA projects that 43.4 million Americans will be traveling this Thanksgiving weekend, down slightly from last year. The majority of those people (38.9 million) will be driving, with the rest of traveling by air (3.14 million).
So what does this deadly storm mean for the economy? In the accompanying clip, Yahoo Finance's Lauren Lyster and Jeff Macke discuss just that.
- Stacy Curtin at Daily Ticker3 mths ago
Investors certainly have something to be thankful for this Thanksgiving.
But where can stocks go from here?
"All things being equal, an accommodative Fed means stocks are going higher," says Michael Holland, chairman of Holland & Company, a private investment firm. "Ben Bernanke and Janet Yellen are telling us they are probably still likely to go up and that's the right bet right now."
U.S. markets are trading lower Thursday morning after rallying Wednesday afternoon. The Dow Jones Industrial Average (^DJI) closed up 0.39% to 14,512 on Wednesday and the S&P 500 (^GSPC) ended yesterday's session up 0.68% to 1,559 after Fed Chairman Ben Bernanke reiterated his pledge to keep the monetary spigot flowing.
Related: There are No Bubbles, QE Is Working!
Despite some improving economic signs from the housing and labor markets, the Fed gave several reasons why it will continue its monthly $85 billion stimulus program. Those roadblocks include the 7.7% national unemployment rate, fiscal constraints in Washington and an economic recession and sovereign debt crisis in Europe.
Even as the economy seems to be picking up steam, there are signs that there's trouble ahead for U.S. multinational firms.
Take for example:
Aside from the€10 billion Cyprus bailout, U.S. housing data will be another key factor for the markets this week.
Housing starts rose 0.8% in February to an annual rate of 917,000 homes, the U.S. Commerce Department reported Tuesday. That's a 27.7% increase from the year before.
On Monday, the National Association of Homebuilders said homebuilder confidence for new single-family homes fell in March for the third consecutive month. Existing home sales for February will be released Thursday.
While housing may have shown signs of improvement in recent months, perma-bear Gary Shilling, an economist and president of A. Gary Shilling & Co., a financial consultant firm, is not convinced a recovery is in the making.
"It may have bottomed, but I am not sure it has a strong recovery," he tells The Daily Ticker's Lauren Lyster in the accompanying video. "I think the risks are on the downside."
It's been more than five years since America's biggest banks caused the worst financial crisis in decades. Questions still remain over how to minimize the risk of another financial shock.
Indicative of this "business as usual" environment is JPMorgan's so-called London whale trade that has cost the bank and its investors nearly $6.2 billion. A new report by a Senate investigation subcommittee shows that JPMorgan, the country's largest bank, ignored risks, misguided investors and did its best to circumvent regulators.
While Western nations have been mired in slow economic growth over the last few years, third world economies have flourished. According to Peter Blair Henry, dean of New York University's Stern School of Business and author of the new book Turnaround: Third World Lessons for First World Growth, there's a lot the West can learn from emerging markets and their governments.
"We are in a position right now where first world countries, like the United States and countries in the Eurozone, look a lot like third world countries from thirty years ago," says Henry. "The key idea is that today's emerging markets, which used to be third world countries, turned themselves around by applying three things: discipline, clarity and trust."
His three tenants are predicated on lawmakers working with each other, not against each other, and putting ideologies aside for the sake of the greater economic good.
If the U.S. economy fell into another recession, American banks would likely face a loss of $462 billion, according to the the Federal Reserve's annual examination of the health of U.S. banks. Seventeen of the nation's largest banks would survive the economic crisis, according to the Fed.
Of the banks tested, Ally Financial is the only institution that is at risk of collapse in the face of another downturn. Surprisingly both Goldman Sachs (GS) and Morgan Stanley (MS) barely received a passing grade and JPMorgan Chase (JPM) performed only slightly better.
North Korea threatened a pre-emptive nuclear attack on the U.S. Thursday as the U.N. Security Council prepares to vote on tougher sanctions against the country for continuing to pursue its nuclear and ballistic missile programs.
"Since the United States is about to ignite a nuclear war, we will be exercising our right to preemptive nuclear attack against the headquarters of the aggressor in order to protect our supreme interest," the North's foreign ministry spokesman said in a statement according to Reuters.
Pyongyang views the U.S.-South Korea military exercises in the region as a serious threat and has ramped up its rhetoric about nuclear action.
Ian Bremmer, president of Eurasia Group, a global political risk research and consulting firm, joined The Daily Ticker remotely from New Dehli to discuss whether Washington should be concerned about the North Korean threats.
The debate over whether or not to prevent sequestration cuts is over. As of last Friday, $85 billion in spending cuts will take effect this year and another $1 trillion in cuts will impact the economy over the next decade.
But if you thought the debate over America's finances was over, think again. Two more fiscal roadblocks loom: the continuing resolution to keep the federal government operating and yet another debt ceiling deadline.
The Daily Ticker recently spoke to David Walker, former U.S. comptroller general and CEO of the Comeback America Initiative. He said Washington policymakers were "a global embarrassment" because they continue to play a game of chicken over taxes and the deficit at the expense of the American public.
John Paul DeJoria, billionaire co-founder and CEO of John Paul Mitchell Systems and owner of Patron Spirits, joined the show to discuss this dysfunction in Washington and the impact it had on business and the private sector.
The deadline for Congress to prevent yet another fiscal crisis is upon us.
On Friday, $85 billion in automatic spending cuts are set to take effect if our elected officials fail to act. Over the next decade, a total of $1.2 trillion in government cuts to both domestic and defense spending are expected to impact the U.S. economy. This is the sequestration process that was agreed to two years ago, which was supposed to be headed off before reaching this point, as The Daily Ticker Henry Blodget details in the accompanying clip with Yahoo! Finance senior columnist Michael Santoli.
On Sunday, The White House released a new state-by-state report detailing the "devastating impact the sequester will have on jobs and middle class families across the country if Congressional Republicans fail to compromise to avert the sequester by March 1 st ."
Here are some details:
Those details aside, Santoli does not think the economic and market impact will be all that harsh because the country has been bracing for the impact for months.