Wal-Mart has released a sales forecast for its fiscal year ending January 31 stating that the retailer expects to see a 1 to 2 percent gain in annual sales, a figure that marks a sharp slowdown from Wal-Mart’s previous forecasts. However, Wal-Mart expects its sales to rebound in the following year, seeing sales rise 4 to 6 percent.
In addition to expecting larger sales, Wal-Mart also anticipates to spend an additional $1 billion this year over last as it continues to upgrade its stores and to expand its business into new markets. Wal-Mart has stated that it does not expect any …read more

If you took a look at your 401(k) at the depth of the most devastating financial downturn since the Great Depression, you might have been quite depressed to discover how much value your investments lost as a result of the stock market’s rapid decline. However, you may be surprised to learn that the average 401(k) account is up 7 percent in value from two years ago.
This is because the stock market has rebounded very smoothly, with the Dow Jones industrial average rising above 10,000 recently. If you have a healthy mix of stocks and bonds and you continue to make …read more

While many taxpayers and federal officials have called for the government to wind down its spending on its various federal bailout programs, the Obama administration has just announced a new housing bailout to help fix the housing market. The plan would be geared to assist state and local housing finance agencies.
These agencies help first-time and lower-income homebuyers to secure a mortgage and also help to develop or renovate rental properties. Obama administration officials have not yet placed a price tag on the program but have also assured that none of the money spent on the program will come from the …read more

The National Retail Federation has issued a prediction that may not come as a surprise to many struggling retailers and cash-strapped consumers: holiday retail industry sales will decline this year for a second year in a row. According to the NRF, consumer fears over job security and home values are the main forces that will drive down consumer spending this year.
The trade group’s forecast predicts that sales in the months of November and December will decline about 1 percent from 2008 to $437.6 billion, which would still be a significant improvement over last year’s decline of 3.4 percent. However, these …read more

With more than 15.1 million people out of work in the United States, unemployment reached 9.8% during the month of September — the highest rate in 26 years. And former Federal Reserve Chairman Alan Greenspan said things are going to get worse. On ABC’s This Week, Greenspan predicted that the unemployment rate will surpass 10% and then “stay there for a while before we start down.”
Though he is definitely concerned with the unemployment statistics, Greenspan says a second stimulus plan is not needed now.
“In my judgment it’s far better to wait and see how this momentum that has already begun …read more

Personal bankruptcies hit a four-year high, topping the one million mark during the first nine months of 2009. According to the report issued by the American Bankruptcy Institute (ABI), the numbers increased 35% over the same period in 2008.
According to ABI, there were 1,046,449 personal bankruptcies in the first nine months of this year — the highest since 2005 when 1,350,360 consumer bankruptcies were filed. Approximately 71% of those who filed for bankruptcy in the first nine months of 2009, filed Chapter 7.
In 2005, the obvious reason for the large number of bankruptcies was change in the bankruptcy law. However …read more

Despite hopeful rumors that Chrysler had changed its mind about closing down a plant in Sterling Heights, Michigan, Chrysler Group LLC and Fiat SpA CEO Sergio Marchionne has confirmed the plans to shut down the plant. The plant, which will be completely shut down by the end of 2010, employs 1,300 workers.
In the two years leading to Chrysler’s April 30th bankruptcy filing, Chrysler shed 35,000 jobs in an attempt to cut costs as Chrysler and other automakers feel the heat of the recession. Hundreds of workers and their families turned out to rally against the closure of the plant and …read more

The state of the economy, falling wages, and rising unemployment have had a dramatically negative impact on homes sales over the past year, but several factors have recently contributed to a turnaround in the home market. However, the 0.7 percent gain in home sales that was seen last month was far below what analysts on Wall Street expected.
New-home sales increased in August to 429,000, up from the 426,000 homes that were sold in July, according to statistics released by the Commerce Department. Although it was the fifth consecutive month to feature an increase in home sales, the percentage of growth …read more

There have been many reports indicating various signs of economic recovery that have turned out to be less than definitive, but it seems that everyone has faith in the economy as of late. The Federal Reserve is the latest entity to express its optimism for the economy, releasing a positive assessment of the situation that has rallied investor confidence.
In its statement, the Fed also revealed that it would slow the purchase of mortgage debt in order to keep the program alive until next March, a sign that the sense of urgency on the part of the Fed to take action …read more

In all the doom and gloom of these tough economic times, at least one company has reported quarterly results that are leaps and bounds above analyst expectations and extremely solid on their own right. Foods maker General Mills has reported a first-quarter profit jump of 51 percent from last year to this year, launching its shares up.
 
General Mills’ fiscal first quarter net income was $420.6 million, or $1.25 per share, which has increased from a net income of $278.5 million, or 79 cents per share, last year. Revenue has risen 1 percent from last year to $3.52 billion, while Wall …read more