Following a period of protracted decline in economic activity, a recovery occurs when business activity is increasing. This is viewed primarily with increases in Gross Domestic Product (GDP) and employment levels. As businesses increase their sales and are more confident about future activity, they hire more people. The new hires are more confident about their future and spend a portion of their income on business, and the cycle continues. The stock market usually leads an economic recovery, because stock investors look to the future. If investors see an economic recovery 12 months from now, they will start to accumulate shares in companies that will benefit.
Retail sales jumped in May, suggesting the U.S. economic recovery is picking up momentum.On Thursday, June 11, the Census Bureau reported better-than-expected retail and food services sales. For the month of May, total retail and food service sales came in at $444.9 billion, representing a 2.7% increase compared to same time last. Read More
Rating agency Standard & Poor’s (S&P) raised Ireland’s credit rating for a second time in six months, this time from A from A+, as the country’s economic recovery continues. (Source: The Wall Street Journal, June 5, 2015.)On Friday June 5, 2015, S&P cited the country’s narrowing fiscal deficit, strong growth,. Read More
Look at any newspaper or watch any financial news channel and you will hear someone saying the U.S. economy is growing. To prove their point, they will refer to gross domestic product (GDP) figures and unemployment data.Yes, the GDP numbers and the unemployment picture do look better, but our economy is still in very big trouble.U.S.. Read More
Very soon we’re going to hear the earnings news straight from the horse’s mouth. Quarterly earnings are beginning to trickle in and even if you aren’t interested in the stocks that you don’t own, corporate reporting is the most important market intelligence you can review.For years, Paychex, Inc. (PAYX) was one of those companies. Read More
A good gauge for me on how consumers in the U.S. economy are faring has always been the statistics coming out of Wal-Mart.Wal-Mart Stores Inc. (NYSE/WMT) reported its operating income in its second quarter (ended July 31, 2014) declined by 2.4%. Its subsidiary, Sam’s Club (wholesale store), saw its operating income, after taking. Read More