Microsoft Corp. has posted an 18 percent decline in quarterly profits, results that are not desirable on their own but actually hint at the possibilit of a larger recovery in the ailing technology sector of the economy. While business spending for Microsoft products was weak in the last quarter, Microsoft saw increased demand for personal computers and videogames.
Microsoft’s results have provided optimism to the rest of the technology sector that consumer demand may be on its way to making a full recovery, especially after the impact that the economic recession has had. Investors also took Microsoft’s results as a sign …read more

For the first time since 1992, federal regulators have closed over 100 banks across the United States, a sign that the financial crisis is not yet over for financial institutions that have suffered heavy losses from the weakness of the real estate market. Seven banks were closed just yesterday, which brings this year’s total to 106.
While the situation is far from reaching 1992’s levels of bank closures, which topped 179 as the result of a savings-and-loan crisis, the fact that 106 banks have been closed spells a lot of trouble for the employees of the banks and the communities which …read more

Caterpillar, the maker of bulldozers and excavators, has posted surprisingly high third-quarter earnings that managed to beat analyst expectations and raised its full-year forecast to a level that beats the highest analyst prediction. The company has struggled immensely under the weight of the economic downturn and it believes that the third quarter marks the bottom of its own downturn.
Profit fell from $868 million, or $1.39 per share, last year to $404 million, or 64 cents per share, this year, according to a statement released today by the company. Caterpillar has undergone vigorous cost-cutting measures to battle decreasing revenues, slashing inventories …read more

The recession has left many people worried about their chances to retire has planned, while even more workers worry about the feasibility of their retirement plans in such a volatile time. For people who want to take the suspense out of retirement, a variety of financial-services companies have begun offering programs that will help you to assess your retirement situation.
These programs will allow you to determine whether or not you will outlive your retirement savings, as well as how to bolster your savings down the road and how to best start withdrawing money from your retirement accounts.
However, the knowledge does …read more

General Electric has posted a quarterly decrease in profit of 42 percent, a result that, while disappointing in and of itself, actually marks an improvement from what analysts predicted for the massive company. In fact, GE’s results showed that its important industrial business is showing signs of recovery, hitting a record $174 billion backlog of equipment and services orders.
The company’s quarterly revenue was smaller than analysts expected, but the strong performance of its industrial and media businesses helped to stave off GE’s current main weakness, its GE Capital financial division. GE’s results sent its shares down 5.5 percent, or 92 …read more

After two straight sessions closing above 10,000, the Dow Jones industrial average fell 67 points, or 0.7 percent, to close under the level that has long been a psychological milestone for investors. The first part of the week had been very positive for investors, but General Electric and Bank of America’s disappointing quarterly results were enough to keep investors at bay.
The S&P 500 index fell 9 points, or 0.8 percent, while the Nasdaq composite fell 16 points, or 0.8 percent, signaling a disappointing end to a promising week, one that saw stocks rise to year-high levels, and then some.
Analysts say …read more

According to the Reuters/University of Michigan index, consumer sentiment fell sharply in October, plunging from 73.5 to 69.4 throughout the course of the month. The result is worse than analysts expected, as the average analyst estimate for the state of consumer sentiment this month was 72.0, signaling that the economy might be more difficult to predict than would be hoped.
September’s consumer sentiment level marked an 8 point jump to its highest level since January 2008 and a moderate decline from that number was expected as a natural part of economic recovery. Analysts say that the drop indicates that the U.S. …read more

Even though the recession is most likely over, the economy has certainly not become healthy again due to huge unemployment figures, weak consumer spending, and a variety of other economic issues. However, one potential problem that many analysts have begun pointing to is the risk of inflation, a risk that has Federal Reserve officials split concerning whether or not inflation could become a serious problem.
Fed officials voiced their opinions on the risk of inflation during the September 22-23 Federal Open Market Committee Meeting, the minutes for which were released today. A big question that arose during the meeting concerned whether …read more

The New York Times Company has decided that it will not, after all, sell The Boston Globe, a development that comes several months after Times Co. had initially threatened to close the newspaper for financial reasons. The decision follows a period in which Times Co. was not able to attract any suitable bids.
Company chairman Arthur Sulzberger Jr. has stated that the Times Co. will also not have to sell the Globe because the newspaper’s financial situation has improved to the point where selling it to save money is no longer as imperative as it was before. Executives of the company …read more

Many retirement surveys have been released recently that have cast a dark cloud over the prospect of retiring in the middle of the economic downturn. According to these surveys, retirement has been pushed out of reach for several years, or even indefinitely, for millions of Americans. However, the gloomy forecasts do not necessarily mean that retirement is no longer attainable because for several reasons.
First of all, surveys only account for what people think they will be capable of doing. Many surveys show a large gap between when a person says he or she will retire and when he or she …read more