Economy

The Dow surged Tuesday on reports the European Union was hatching a plan to end the Greek debt crisis. But just because the blue-chip index sits above 10,000 again doesn't mean the latest threat to equities is over. Investors should brace themselves for more tremors to come.

Salaried employees hoping their 2010 annual raise will provide some relief as they attempt to recover from the worst economic downturn in 80 years are likely to be disappointed: Raises for U.S. workers may barely keep pace with inflation this year. The average company will budget just 2.8% of its salary pool for wage increases -- the first time in more than two decades that number has fallen below 3%.

Fed Chairman Ben Bernanke and a panel of top economists will go before a House committee to discuss the right way to remove the crutch of government stimulus from the economy so that it doesn't knock the nation back into recession.

McDonald's is closing 430 restaurants in Japan, the latest sign of the faltering economy in the Asian country. The world's largest restaurant chain plans to take a charge of $40 million to $50 million in the first half of the year. McDonald's Holdings Co. (Japan) has 3,700 stores.

My alarm clocks always seem to break at the critical moment. But here are five outrageous alarm clocks that will definitely get you up to trade those Hong Kong futures in the middle of the night.
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What usually happens to the markets on days when the TICK indicator starts off extremely weak.
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Great interview with super-trader Doug Kass, covering his best trades ever and his market outlook for 2010.
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In Asia Tuesday, Hong Kong's Hang Seng Index added 1.2%, China's Shanghai Composite Index added 0.5%, and in Japan, the Nikkei 225 Index fell 0.2%. Toyota shares closed higher in Tokyo today, rising 3% despite an announcement that it is now recalling at least 170,000 units of its top-selling hybrid, the Prius.

With the fate of the estate tax stuck in the Senate, concern is growing that the legislation could ensnare many small businesses as soon as next year. Up to eight times more estates could get smacked with the tax next year as this year -- and for some, that could mean enormous problems.

Did Goldman Sachs induce the collapse of AIG? The SEC is now examining the possibility that Goldman used its leverage in its relationship with the giant insurer to squeeze extra cash out of AIG on its credit default swaps -- and then push it over the edge.

Apparently, lots of voters think it's healthy for neither party to have the votes in Congress to impose its will. But investors need to keep in mind the giant problems that need solving and that can get solved only if the Democrats and Republicans somehow learn to work together.

Toyota is reportedly preparing to recall at least 311,000 2010 Priuses to fix a problem with their brakes. Unlike the mechanical issues which led to the two recent recalls of 8 million Toyotas for unintended acceleration, the problem with the Prius is apparently a software issue.