double dip recession

Europe Teeters on the Edge of Recession

Europe is edging closer to recession, dragged down by the crippling debt problems of the 17-country eurozone, official figures showed Tuesday: The economies of both the eurozone and the full EU shrank by 0.2% in the second quarter, after a flat first quarter.

As Italian Drama Persists, Small Businesses Worry

The Atlantic Ocean is wide, but maybe not wide enough. On Thursday, markets had a mixed reaction to the deepening economic crisis in Europe. Some sources reported that the European Central Bank would step in. But in the U.S., small business owners are growing nervous.

Get Ready for Great Recession, Part 2

The capital of Pennsylvania just fell into bankruptcy. What? You didn't hear? Neither did the financial markets -- yet. The day after Harrisburg bit the bullet, the Dow barely trembled, while the Nasdaq actually rose slightly. But two of our smartest investors seem to think this is a very big deal indeed.

3 Signs We're Heading for a Recession

Zero jobs were created in August. Does that, by itself, augur another recession? Not necessarily -- but add the state of consumer confidence, and top it off with Wall Street skittishness, and all signs point to trouble ahead. Government economists, however, are predicting growth. Here's why they may be wrong.

5 Dividend Stocks You Can Rely on in a Slow Economy

Companies with strong balance sheets and high dividends will be among the few safe investment harbors if the economy continues to cool -- and given today's conditions, it's hard to imagine how the recent stock market rally could last much longer. Here are five dividend stocks that should keep paying strong returns.

How to Prep for a (Possible) Double-Dip Recession

Is America headed for the Great Recession, part two? The talking heads are still in heated debate on the issue. But for those of us who aren't pundits, there's a more important question: What should we be doing now, just in case economic lightning does strike twice?

As Companies Beat Estimates in 2011, Expect Stocks to Soar

Will Stocks Rise asLast year, stocks rose as cost-cutting helped businesses set record profits. But its not too late to buy in, says venture capitalist Peter Cohan: With the corporate world's focus shifting to sales growth, and profits likely to beat expectations, stocks still look undervalued. Companies Beat Revenue Estimates?

How the Bear Market Pundits Got It Wrong

The S&P 500 has rebounded 20% since its July 2010 low, which comes as bad news to perma-bears like Nouriel Roubini, Gary Shilling, and Bill Gross, all of whom predicted the opposite. This raises several questions about how stocks move, and why the pundits we hear say the things they do.

Greenspan: Deficit Fears Could Trigger Bond Market Crisis

The U.S. must act to rein in its massive budget deficits or face the risk of a bond market crisis, former Fed Chairman Alan Greenspan said Sunday. If deficits begin to frighten the bond market, interest rates will rise, undermining the recovery, and possibly causing a double-dip recession.

Philly Fed Index Shows Manufacturing Growing Slightly

Manufacturing activity in the mid-Atlantic region showed modest improvement in October, according to the Federal Reserve Bank of Philadelphia, which saw its Business Outlook Survey rise to 1.0. However, despite that return to positive territory overall, key index components continued to reveal economic softness.

Mild Producer Price Hikes Ease Deflation Concerns

Producer prices rose a higher-than-expected 0.4% in September, but the core rate rose just 0.1%, the Labor Department said. The price increases point to a low-inflation environment, easing concerns that the world%u2019s largest economy will lapse into a dangerous deflationary spiral.

OPEC to Leave Oil Output Unchanged

The Organization of the Petroleum Exporting Countries will leave oil output unchanged, a delegate at the group's current meeting told Reuters. Oil ministers apparently are not worried the weak dollar will drive up the price of crude far enough that it will crimp the global economic recovery.

Fed's Dudley Hints at Further Action to Ease Money Supply

Further monetary action by the Fed may be warranted because of high unemployment rates and low inflation, said Federal Reserve Bank of New York President William Dudley during a speech Friday at the Society of American Business Editors and Writers conference in New York.

Inventories See Biggest Gain in Two Years

Stronger retail sales prompted businesses to restock shelves and warehouses, as business inventories rose 1% in July -- the largest gain in two years. The gain will help lessen concern that inadequate sales and inventory restocking would slow the U.S. economic recovery to a crawl.

Top Economists See Consumers Rebounding Faster

Forget the gloomy predictions: According to Richard Berner of Morgan Stanley, U.S. consumers are a year ahead of schedule in repairing their household balance sheets, giving them the ability to start spending again soon. And the head of the IMF was explicit Monday: A double dip is unlikely.

European Commission Raises Economic Growth Forecasts

The European Commission upped its forecast for economic growth in the European Union and the 16-member euro zone in 2010, based on strong growth in industrial exports. The commission said that the 27-member EU would probably grow by 1.8% in 2010, compared with an earlier forecast of 0.9%, The Wall Street Journal reported. The commission forecast growth of 1.7% for the euro zone, compared with an earlier forecast of 0.9%.

More Jobs Added Than Expected in August

The U.S. economy lost only 54,000 jobs in August -- less than had been expected -- while the private sector added a greater than predicted 67,000 jobs. Meanwhile, job loss totals for June and July were revised substantially downward.

Initial Jobless Claims Fall 6,000 to 472,000

Initial jobless claims fell 6,000 to 472,000 in the week ending Aug. 28. The revised figure for the previous week was 478,000. The four-week moving average, a clearer measure of unemployment trends, fell 2,500 to 485,500, the Department of Labor said. The revised average for the previous week was 488,000.

Economic Growth Revised Lower for Second Quarter

U.S. economic growth slowed to an anemic 1.6% pace in the second quarter, due primarily to a worsening trade imbalance. The sole ray of light in the Commerce Department's report was that the downward revision was not as severe as economists had expected.

'Dr. Doom': 40% Chance of a Double-Dip

Like many economists, Roubini predicts that second-quarter gross domestic product growth will be revised down to an a annual rate of 1.2% from an initial reading of 2.4%. Additionally, a "series of tailwinds in the first half of the year ... are going to be essentially headwinds" in the second half. He now pegs the chances of a "double dip" recession at 40%.

Financial Advisers Get More Optimistic About Stocks, Jobs

Independent investment advisers remain fairly bullish in their outlooks for the economy, the job market and stock market performance over the next sixth months, even as their clients have become more pessimistic, a recent survey by discount brokerage Charles Schwab has found.

New-Home Sales Plunge to a Record Low in July

New home sales unexpectedly plunged 12.4% to a 276,000-unit annual rate in July, an all-time low. Combined with July's 27.2% plunge in existing-home sales, the picture is one of a U.S. housing sector that's cratering since the federal home buyers tax credit program ended on April 30.

Austerity Could Push Europe Back into Recession, Stiglitz Says

Joseph Stiglitz, a Nobel Prize-winning economist, said Europe risks falling back into recession as governments slash spending in a bid to narrow their budget deficits. "Cutting back willy-nilly on high-return investments just to make the picture of the deficit look better is really foolish," Stiglitz said today, according to Bloomberg News.