U.S. household income climbed 10 percent in January from December, the U.S. Commerce Department reported, due in part to federal $600 stimulus checks the federal government sent that month to every adult and $300 in new weekly federal unemployment benefits. The month-to-month gain was the largest since last April when the government sent everyone $1,200...
Category: TRENDS ON THE U.S. ECONOMIC FRONT
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UNEMPLOYMENT CLAIMS DROP FOR FIRST TIME IN THREE MONTHS
During the week ended 19 February, new claims for unemployment benefits dropped by 111,000 to 730,000, the lowest number since November 2020 and far below the four-week moving average of 807,750, the U.S. Labor Department reported. The new number is a tenth of the flood of claims at its peak last spring and an encouraging...
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ARCANE BOND MOVE GIVES CLUE ABOUT INFLATION
Bond yields have risen sharply this year; stock-pickers are shifting away from glitzy tech stocks that have gained value during the pandemic and into shares of companies that will be strengthened by a reviving economy, such as airlines and hotels. With another deluge of stimulus money on the way, the markets’ message is clear, analysts...
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U.S. MARKETS OVERVIEW
The COVID War. It’s a gambler’s dream. On the “upbeat” news that in 2020, the U.K. registered its worst economic contraction in 300 years, last week the British pound climbed to its highest level since 2018. Today, Statistics Canada reported that the Canadian dollar shrank 5.4 percent in 2020, posting its steepest annual decline since...
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USED RESTAURANT EQUIPMENT FLOODS THE MARKET
Since February 2020, about 110,000 U.S. restaurants – about 17 percent of the total – have closed permanently, according to the National Restaurant Association (NRA). Those failures have brought a boon to people dealing in and shopping for used commercial stoves, mixers, steam tables, and other gear. Grafe Auction, a Minnesota firm that helps restaurants...
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HEDGE FUND BUYS TRIBUNE NEWSPAPER CHAIN
Tribune Publishing, which owns the Chicago Tribune, Baltimore Sun, New York Daily News, six other newspapers, and a news syndicate, is being taken over for $630 million by hedge fund Alden Global Capital in a reportedly all-cash deal. In 2019, Alden bought 32 percent of the company, becoming its largest shareholder. Hundreds of Tribune staffers...
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U.S. HIGHER ED SHEDS 650,000 JOBS DURING PANDEMIC
The 4,000 U.S. colleges and universities cut 13 percent of their collective workforce in the past 12 months, axing about 650,000 jobs, according to the U.S. Labor Department. Custodians, kitchen workers, and other low-wage employees took the brunt of the cuts as dorms and dining halls closed when students were ordered home last March. Many...
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RETAIL SALES REBOUND IN JANUARY
U.S. retail sales in stores, eating and entertainment venues, and online grew 5.3 percent in January over December’s lackluster holiday sales, the U.S. commerce department reported. The sales jump marked the largest rise in consumer spending since June as shoppers spent their $600 federal stimulus stipends, economists said. Consumer spending comprises almost 70 percent of...
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BIDEN PPP RULES CHANGE FAVORS SMALL BUSINESSES
The Biden administration has announced changes to the Paycheck Protection Program (PPP) that favors small businesses and the self-employed. For two weeks beginning 24 February, the forgivable loan program will be open only to businesses with fewer than 20 employees. Beginning 1 March, new eligibility rules will allow more self-employed persons to receive higher payments;...
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BIDEN STIMULUS CAN YIELD FULL EMPLOYMENT, YELLIN SAYS
President Biden’s $1.9-trillion stimulus plan could return the U.S. economy to full employment within a year, treasury secretary Janet Yellin said in an 18 February CNBC interview. Even though the economy is showing signs of gradual recovery, the full $1.9 trillion is still essential, she argued. “It’s very important to have a big package that...