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Nov 5, 2010

MarketWatch: Personal Finance Daily.- Inflation But Not For Home Prices

MarketWatch
Personal Finance Daily
NOVEMBER 05, 2010

Friday's Personal Finance stories

By MarketWatch



Don't miss these top stories:
The National Association of Realtors, an oft-optimistic group, came out Friday with a less than cheery forecast for 2011: Home prices are liable to go nowhere from here, at least in the short term.

The group's chief economist says it'll take two more years to wring out all the foreclosures and short sales still holding up the housing market. But he also says that five years from now, people will look back at 2010 as the year to buy, thanks to the combination of weak home prices and ultralow mortgage rates (rates that have nowhere to go but up, unless they just stay flat for a while). Read Amy Hoak's update from the NAR conference in New Orleans.

Plus, don't miss the latest job-market news (good: job growth exceeded expectations; bad: 2 million people are about to lose their unemployment benefits). And read how small investors can profit in these times.

Also, read our 10-step inflation guide. Because, in yet another good news/bad news story, apparently we've sidestepped deflation and a double-dip recession, but inflation's just around the corner. You may already know that from your trips to the grocery store.

Andrea Coombes , Personal Finance editor

REAL ESTATE

Home prices likely to stay flat in 2011: NAR

Nationwide, homeowners can expect little, if any, increase in home values in 2011, the National Association of Realtors said in a forecast released Friday at the group's annual conference in New Orleans.
Read more: Home prices likely to stay flat in 2011: NAR.


When renting out a home is the best option

Question: My nephew recently got married and moved into his bride's house. He has been trying to sell his house in the $100,000 range for eight months. He purchased the house for $80,000 five years ago. His down payment was $5,000 and he has a 30-year mortgage.
Read more: When renting out a home is the best option.


Pending home sales fall 1.8% in September

A gauge of pending sales of homes fell 1.8% in September, signaling an "uneven recovery entering 2011," the National Association of Realtors reported Friday.
Read more: Pending home sales fall 1.8% in September.


TAXES

Your paycheck is going to shrink

The likelihood that Congress will fail to make a decision on the Bush tax cuts by Dec. 31 means most Americans will see higher withholding on their paychecks starting in January. Plus, the Making Work Pay credit is expiring. In other words, get ready for a smaller paycheck.
 Watch video: Your paycheck is going to shrink.


FOOD SAFETY

Gulf seafood declared safe, but doubts linger

Joe Jewell has a list, and he's not afraid to use it. The deputy director of the Office of Marine Fisheries in Mississippi keeps a contact list of major media outlets and the press, and if he sees something wrong with the state's monthly seafood samples from the Gulf, the first thing he will do is call reporters.
Read more: Gulf seafood declared safe, but doubts linger.


THE JOB MARKET

Two million people to lose jobless benefits in December

About 2 million long-term jobless workers could lose eligibility for unemployment-insurance payments by the end of the year due to the expiration of federal funding.
Read more: Two million people to lose jobless benefits in December.


Payrolls grow by 151,000 in October

The U.S. economy added jobs for the first month since May and the nation's unemployment rate held steady at 9.6% for the third straight month, suggesting the labor market may be stabilizing.
Read more: Payrolls grow by 151,000 in October.


Good news on payrolls isn't good enough

Finally, the economy is starting to deliver some good news. Not great news, but good.
Read more: Good news on payrolls isn't good enough.


QE2 and jobs: more hope than certainty

The Federal Reserve's second round of quantitative easing has brought joy to most financial markets.
Read more: QE2 and jobs: more hope than certainty.


Israeli unions to Obama: Try economic humility

There was another loser in the American midterm elections besides President Barack Obama and his party: Big Labor. Having reportedly raised about a third of the funding for all Democratic candidates, the unions and their affiliates now must wonder whether the American voter, besides punishing Congress and the White House, also meant to humble organized labor.
Read more: Israeli unions to Obama: Try economic humility.


INVESTING

10-step inflation survival guide

There are snappy headlines all over cyberspace right now about the Federal Reserve setting sail with QE2 — or a second round of "quantitative easing" policies, for those more aware of the famous ocean liner than economic jargon.
Read more: 10-step inflation survival guide.


Small investors catch Wall Street's big wave

Rock ‘n' roll duo Jan and Dean sang about sun-drenched "Surf City," with its lure of "two girls for every boy." Stock investors nowadays are finding that the surf's up on Wall Street, where lately there's been at least two bulls for every bear.
Read more: Small investors catch Wall Street's big wave.


What to do with your portfolio now

We have, it would appear, plenty of reason to cheer. The Republicans have taken control of the House and that should bode well for government spending and for tax cuts being extended. And the Federal Reserve plans to buy $600 billion in government securities, a move designed to give the economy the near-equivalent of an eight-month energy drink.
Read more: What to do with your portfolio now.


Advisers urge high-frequency trader rules

High-frequency trading systems should face new rules in the aftermath of the "flash crash" that rattled the markets worldwide on May 6, some members of a joint securities and futures regulator advisory committee said Friday.
Read more: Advisers urge high-frequency trader rules.


Hedge funds up in October, but lag equities

Hedge funds generated solid returns in October, but managers lagged a jump in the stock market because some were still cautious heading into the month.
Read more: Hedge funds up in October, but lag equities.


ECONOMY & POLITICS

The era of broken government

The era of big government is over, Bill Clinton said after his Democratic Party suffered a midterm shellacking 16 years ago.
Read more: The era of broken government.


Pelosi to run for House Democratic leader

Defying calls from some members of her own party to step aside, outgoing House Speaker Nancy Pelosi said Friday she'll run for House Minority Leader after her party lost its majority in the chamber to Republicans.
Read more: Pelosi to run for House Democratic leader.


Second round of bank stress tests advocated

Regulators should require big banks to undergo another round of stress tests, focused on the litigation and other costs to financial institutions from investors seeking to force banks to repurchase or "put-back" bad mortgages the banks sold them, two high-profile academics said Friday.
Read more: Second round of bank stress tests advocated.


In charts: Dollar, payrolls, car sales

In a week when the Federal Reserve announced a $600 billion bond-buying plan, the above chart shows how commodities have strengthened and the dollar has dropped since the Fed's plans were first hinted at during a speech in late August by Federal Reserve Chairman Ben Bernanke. The dollar has dropped 13%, and the Thomson Reuters/Jefferies CRB commodity price index has climbed 18%.
Read more: In charts: Dollar, payrolls, car sales.

BofA Fighting Suits Over $375 Billion Related to Mortgages:CNBC Evening Brief.




LATEST STORIES


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LATEST VIDEO

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Stocks Close Nearly Flat Despite Strong Jobs Number - U.S. Commentary . Evening Market Wrap : RTTNews .





Evening Market Wrap Fri Nov 5 17:06 2010

Commentary

Nov 5, 2010 Stocks Close Nearly Flat Despite Strong Jobs Number - U.S. Commentary Stocks turned in a lackluster performance to close out an especially busy week on Friday, with the day's upbeat October jobs doing little to lift the markets following Thursday's rally. The lack of significant movement in the session came as traders considered the far better than expected jobs report priced into the stock market after Thursday's surge, although the data also proved to be solid enough to prevent a bout of profit taking. Full Article

Economic News

Nov 5, 2010 Economy Adds 151,000 Jobs, Unemployment Rate Holds At 9.6%The US economy generated more than 150,000 jobs in October, with significant positive revisions to the jobs data from the previous two months, the Labor Department revealed Friday. Non-farm payrolls rose by 151,000 in October, higher than the 60,000 gain expected by Wall Street economists. Full Article
Nov 5, 2010 U.S. Pending Home Sales Unexpectedly Drop 1.8% In September Pending home sales in the U.S. unexpectedly decreased in the month of September, according to a report released by the National Association of Realtors on Friday, with the group noting that the drop signals an uneven housing market recovery entering 2011. NAR said its pending home sales index fell by 1.8 percent in September following an upwardly revised 4.4 percent increase in August. Economists had expected pending home sales to increase by 2.5 percent. Full Article
Nov 5, 2010 U.S. Consumer Credit Unexpectedly Increases In September Consumer credit in the U.S. unexpectedly increased in September, the Federal Reserve revealed in a report released on Friday, with a significant increase in non-revolving credit more than offsetting a drop in revolving credit. Full Article

Earnings News

Nov 5, 2010 Toyota Motor Q2 Profit Surges; Lifts FY11 Earnings View - Update Japanese automaker Toyota Motor Corp. (TM, TYT.L) Friday reported a surge in second-quarter profit, with total sales rising year-over-year. The company also raised its net income and consolidated vehicle sales outlook for the fiscal-year ending on March 31, 2011. Full Article
Nov 5, 2010 AIG Posts $2.4 Bln Loss In Q3 On Charges, Asset Sale - Update Insurer American International Group, Inc. (AIG) reported Friday a hefty loss in its third quarter, compared to an attributable profit last year, mainly reflecting huge charges as well as losses from its certain assets sale. Revenues declined from a year ago, despite higher net premiums earned during the quarter. Full Article
Nov 5, 2010 Dish Network Q3 Profit More Than Triples, Despite Loss Of Subscribers - Update Dish Network Corp. (DISH), the second largest direct broadcast satellite provider in the U.S., Friday reported a sharp increase in its third-quarter profit, as revenues grew 10.9% from last year, despite subscriber losses. Earnings per share and revenues for the period came in above market consensus. Full Article

Political News

Nov 5, 2010 Republicans Renew Calls For Tax Cuts Following Jobs ReportRepublican leaders Friday renewed calls for extending all of the Bush-era tax cuts following the release of a report showing that the unemployment rate in the U.S. remains stubbornly high despite a much bigger than expected increase in employment in October. Full Article
Nov 5, 2010 Murray Hangs On To Senate Seat As Rossi ConcedesWhile the results of the midterm elections did not provide much good news for Democrat, they did manage to win several hotly contested races in the western half of the country, with Washington Senator Patty Murray, D-Wash., the latest to claim victory. As of Thursday night, Murray held a 2 percentage point lead over her Republican opponent Dino Rossi, leading Rossi to concede the race to the three-term incumbent. Full Article
Nov 5, 2010 Pelosi To Run For House Minority LeaderHouse Speaker Nancy Pelosi, D-Calif., will hand her gavel over to Republicans in the next Congress, but the California Congresswoman said Friday that she intends to run for House Minority Leader. "Our work is far from finished," Pelosi wrote in a letter to her Democratic colleagues. "As a result of Tuesday's election, the role of Democrats in the 112th Congress will change, but our commitment to serving the American people will not." Full Article
Nov 5, 2010 Obama Says Job Growth Is "Encouraging" But More Needs To Be DonePresident Barack Obama said Friday that the continued growth of jobs in the private sector and the trend of continuing job growth was a positive sign for the economy. "We've now seen private-sector job growth for 10 straight months," he said. "That means that since January, the private sector has added 1.1 million jobs." Full Article

N Y T : Afternoon Business News.- On Wall Street, a Muted Response to Jobs Data.



BUSINESS:

On Wall Street, a Muted Response to Jobs Data

By BETTINA WASSENER and CHRISTINE HAUSER
The jobs report comes at the end of a week in which markets have gotten a lift from the Fed's plan to buy more bonds.
Your Money

Stepping In When a Parent Can No Longer Cope

By TARA SIEGEL BERNARD
Children may have to handle mundane tasks like paying the bills, or become totally immersed in a parent's financial affairs.
Off the Charts

Believe It or Not, Home Building Is the Good News in Construction

By FLOYD NORRIS
While the pace of residential construction in the United States has stabilized, commercial building has declined and even public projects are flagging.
DealBook

A.I.G. Reports $2.4 Billion Loss in 3rd Quarter

By DEALBOOK
A.I.G. was again hamstrung in part by accounting charges related to its restructuring as it seeks to repay its taxpayer-financed bailout.
DealBook

France to Investigate LVMH Stake in Hermes

By CHRIS V. NICHOLSON
The French securities watchdog said Friday that it was opening an inquiry into LVMH Moet Hennessy Louis Vuitton taking a more than 17 percent stake in Hermes.

Stocks rise as investors book profits after strong week . F & F I N : Reuters - Daily Investor Update






FROM:  REUTERS - DAILY INVESTOR UPDATE




Stocks rise as investors book profits after strong week
Jump in hiring lifts spirits on economy
Bernanke defends Fed from global critics
September pending home sales fall 1.8 percent
Global anger swells at Fed actions
BP gains, traders cite Exxon bid talk
AIG loses more than $2 billion after asset sales
Clearwire falls over 10 percent on cash and momentum fears
Human Genome pins blockbuster hopes on lupus drug
U.S. eyes new rules for market after "flash crash"

U.S. Markets At Close Snapshot: Financial and Forex Info News



U.S.A. Markets At Close Snapshot


Last Change % Chg
DJIA* 11444.08  9.24 0.08
Nasdaq*   2578.98  1.64 0.06
S&P 500*   1225.85  4.79 0.39
Source: The wall Street Journal





















FINANCIAL & FOREX INFO NEWS:Treasury Announces Build America Bonds Issuance Surpass $ 150 Billion. U.S.Department Of The Trearury Press Release



From : Treasury Department Press Room


U.S. Department of the Treasury Logo
Treasury Announces Build America Bonds issuances Surpass $150 Billion
November 5, 2010
TG-948
Treasury Announces Build America Bonds issuances Surpass $150 Billion
Recovery Act Bonds Program Provides Infrastructure
Financing to State and Local Governments,
Saving Billions Compared to Tax Exempt Bonds
WASHINGTON – The U.S. Department of the Treasury today released its comprehensive monthly update on Build America Bonds issuances, including state-by-state data, showing that more than $150 billion have been issued through October 31, 2010.  Build America Bond issuers benefit from substantial savings in borrowing costs when compared to issuing tax-exempt debt.
"In the beginning, Build America Bonds helped fill a critical hole in the municipal finance market left by the financial crisis.  Now, Build America Bonds have now become an important source of financing to help state and local governments undertake much-needed infrastructure projects," said Alan B. Krueger, Assistant Secretary for Economic Policy and Chief Economist at the Treasury Department.   "That state and local governments have now issued more than $150 billion of Build America Bonds and saved billions of dollars in financing costs in the process is a testament to their success and further evidence that the program should be extended."
Market reception for Build America Bonds has been very positive.  Between the program launch on April 3, 2009 and October 31, 2010:
  • There have been more than $150 billion in Build America Bond issuances;
  • Build America Bonds now constitute about 21 percent of the municipal bonds market; and
  • There have been a total of 1,912 separate issues of Build America Bonds by local or state governments in all 50 states, the District of Columbia and two territories.

A complete list of issuances organized by state is available here.
The Build America Bonds program, created by the American Recovery and Reinvestment Act, allows state and local governments to obtain much-needed financing at lower borrowing costs for new capital projects such as construction of schools and hospitals, development of transportation infrastructure, and water and sewer upgrades.  Under the Build America Bonds program, the Treasury Department makes a direct payment to the state or local governmental issuer in an amount equal to 35 percent of the interest payment on the bonds.
The Obama Administration's FY 2011 Budget proposes to make Build America Bonds permanent with a 28 percent subsidy rate; this rate is estimated to be revenue neutral relative to the estimated future Federal tax expenditure for tax-exempt bonds.  The budget also proposes expanding the eligible uses of Build America Bonds to cover a wider range of municipal borrowing, including original financings for public capital projects, current refundings for public capital projects, short-term working capital, and nonprofit 501(c)(3) organization financings. 
The data contained in this report are compiled by the Department of the Treasury using data available from Bloomberg and are not based on filings with the Internal Revenue Service. 

Tech Stocks Finishing Week With Weakness: MarketWatch - Special Financial Services

MarketWatch
Special Financial Services

Tech stocks finishing week with weakness

By Rex Crum MarketWatch


BoJ Retains Key Rate; Unveils Details Of Asset Purchase Plan . RTTNews Morning Market Briefing.


Morning Market Briefing Fri Nov 5 09:01 2010

Economic News

Nov 5, 2010 BoJ Retains Key Rate; Unveils Details Of Asset Purchase Plan The Bank of Japan left its key interest rate unchanged at virtually zero as expected and unveiled details of asset purchase programme to spread the effects of easing effectively and speedily into the economy. Full Article
Nov 5, 2010 RBA May Delay Next Rate HikeAppreciating Australian dollar and a delicate near-term inflation outlook may hold back the Reserve Bank of Australia from raising its key interest rate further this year. Full Article
Nov 5, 2010 UK Output Prices Rise Less Than Expected Britain's output prices rose less than expected in October largely due to a reclassification of data. Full Article
Nov 5, 2010 Eurozone Retail Sales Drop In September Eurozone retail sales unexpectedly fell for a second consecutive month in September signaling that households in the currency block remain reluctant to increase their spending. Full Article
Nov 5, 2010 German Factory Orders Tumble In September German factory orders plunged unexpectedly in September, as external demand dropped sharply, data released by the Federal Ministry of Economics and Technology showed Friday. Full Article
Nov 5, 2010 Spanish Economy Stagnates In Q3 Spanish government's severe fiscal austerity is likely to have weighed heavily on the economic recovery as the central bank said on Friday that the economy stagnated in the third quarter. Full Article
Nov 5, 2010 US Economy Adds 151,000 Jobs, Unemployment Rate Holds At 9.6%The US economy generated more than 150,000 jobs in October, with significant positive revisions to the jobs data from the previous two months, the Labor Department revealed Friday. Full Article

Todays WS Events

Nov 5, 2010 Comerica To Present At BancAnalysts Conference; Webcast At 7:30 AM ET Comerica Inc. (CMA) will make a presentation at the BancAnalysts Association of Boston Conference. The event is scheduled to begin at 7:30 AM ET, November 5, 2010. To access the live audio webcast, log on at www.comerica.com
Nov 5, 2010 American Tower Q3 10 Earnings Conference Call At 8:30 AM ET American Tower Corp (AMT) will host a conference call at 8:30 AM ET November 5, 2010, to discuss its Q3 10 financial results. To access the live webcast, log on at www.americantower.com/atcweb/irpages/irhome.asp The call can also be accessed by dialing (877) 235-9047 (US) or (706) 645-9644 (International) with Code 21351821. For replay of the call, dial (800) 642-1687 (US) or (706) 645-9291 (International) with Code 21351821.
Nov 5, 2010 Coventry Health Q3 10 Earnings Conference Call At 8:30 AM ET Coventry Health Care Inc. (CVH) will host a conference call at 8:30 AM ET, November 5, 2010, to discuss its Q3 10 financial results. To access the live webcast, log on at www.coventryhealthcare.com T he call can also be accessed by dialing (877) 591-4959 (US) or (719) 325-4748 (International). For replay of the call, dial (888) 203-1112 (US) or (719) 457-0820 (International) with access code 5680841.
Nov 5, 2010 KeyCorp To Present At BancAnalysts Conference; Webcast At 9:00 AM ET KeyCorp (KEY) will make a presentation at the BancAnalysts Association of Boston Conference. The event is scheduled to begin at 9:00 AM ET November 5, 2010. To access the live webcast, log on at www.key.com/ir
Nov 5, 2010 Public Storage Q3 10 Earnings Conference Call At 1:00 PM ET Public Storage (PSA) will host a conference call at 1:00 PM ET, November 5, 2010, to discuss its Q3 10 earnings results. To access the live webcast, log on at www.publicstorage.com To hear the live call, dial (866) 406-5408 (US) or (973) 582-2770 (International) with passcode 18251273. A replay of the call can be heard by dialing (800) 642-1687 (US) or (706) 645-9291 (International) with ID 18251273.

NYT: Breaking News Alert .-U.S. Economy Added 151,000 Jobs in October; Unemployment Rate Steady at 9.6%

Breaking News Alert
The New York Times
Fri, November 05, 2010 -- 8:34 AM ET
-----

U.S. Economy Added 151,000 Jobs in October; Unemployment Rate Steady at 9.6%

The United States economy added 151,000 jobs in October, a
welcome change after four months of job losses but still not
enough to make a significant dent in unemployment, which
remained at 9.6 percent.

Private companies have been slowly expanding their payrolls
throughout 2010, according to a Labor Department report
released Friday. This private job growth had been overwhelmed
by the elimination of temporary decennial Census jobs and
state and local government jobs during the summer and early
fall, until October.

The report also offered revised figures for August and
September that showed substantially lower job losses for
those months than previously reported.

Read More:
http://www.nytimes.com?emc=na


FINANCIAL & FOREX INFO NEWS : Stock Futures Dip on Profit Taking : Reuters Before The Bell




FROM: REUTERS BEFORE THE BELL
Stock futures dip on profit taking
AIG posts massive loss on sale and goodwill charges
Fed may let strong banks hike dividends
China and Germany belittle U.S. actions before G20
CFTC and SEC await advice from "flash crash" panel
HSBC warns of harmful regulation, says profits up
BofA fights pressure to buy back mortgages: report
Wal-Mart unit involved in Japan insider trade probe
BOJ holds fire after Fed and gets asset buying plan going
Canada lets slip one reason for blocking BHP bid

The Washington Post: Opinions

wp logo

 Opinions

Eugene RobinsonNancy Pelosi, undone by her own successThe GOP was able to make Nancy Pelosi an issue because she was so effective as House speaker.
 
Charles KrauthammerA return to the normThe Republican wave of 2010 did little more than undo a two-year experiment in hyper-liberalism.
 
Harold MeyersonA post-election numbers gameIf the Democrats want to know why they lost, here are numbers they should ponder.
 
David SmickThe problem with the economy? Confidence.In seeking economic recovery, our national mood could make the difference between success and failure.
 
Youssef Boutros-GhaliEgypt's economic transformationWashington's policy community is telling the wrong tale about my country.
 
Edward Schumacher-MatosWhat an immigrant would say to BoehnerRepublicans and immigrants are on the same side of many issues.
 
Bob Kerrey, Mark Alderman and Howard SchweitzerFederal government needs a chief operating officerThe president needs a chief operating officer to help keep this country moving.
 
Michael GersonThe GOP's Sarah Palin problemHer increasingly erratic political judgment should raise Republican concerns.
 
ArticleAnn TelnaesFrom sketch to animationYou've seen my animations. Now for the first time, see how I prepare these animated cartoons.
 

Tom TOLES

Click on the image for the full-size cartoon.
Ann TELNAES

Click on the image for the animation.
ComPost
Dana Milbank and Alexandra Petri put the 'pun' in punditry
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NYT: Morning Business News




BUSINESS:

Once on a Sleepy Beat, Regulator Is Suddenly Busy

By JULIE CRESWELL and GRAHAM BOWLEY
The trading commission is suddenly on the move, opening 419 investigations in the last year.

Wealthy and Worried, India Is Rich Arms Market

By CHRISTOPHER DREW and HEATHER TIMMONS
India, flush with new wealth but worried about its security, is becoming one of the world's most lucrative arms markets.

Obama to Visit India, and Both Sides Hope to Expand Ties

By VIKAS BAJAJ and HEATHER TIMMONS
More than 200 executives will accompany President Obama and try to boost the countries' economic ties.

FINANCIAL & FOREX INFO NEWS (F & F I N): Reuters Morning Digest.



FROM: REUTERS - MORNING DIGEST


White House signals compromise on tax cuts
Cuba says all 68 on board died in plane crash
Bulls rule as stocks and commodities climb
BofA and Citigroup testing iPhone for corporate email: report
Electric brain stimulation can improve math skills
Hall of Famer Sparky Anderson dies aged 76
New Michael Jackson album gets December release
Plan to lift smoking ban in small pubs