1) Phil's Financial Tip of the Day:
The Lone Star state has gotten a lot of good press lately for coming through the economic downturn relatively unscathed. Thanks to that strong state economy, housing in Texas’ biggest cities, including Houston, San Antonio and Austin, never suffered from the plunge in property values that struck the rest of the United States in the last few years.
America's Most Overpriced Cities, 2012-From Forbes
http://realestate.yahoo.com/promo/americas-most-overpriced-cities-2012.html
2) In the Markets today:
The Dow industrials finished in the red for the fifth time in six sessions, as mixed earnings curbed sentiment ahead of Friday's reading on unemployment.
Blue Chips Slump-From The Wall Street Journal
The Dow industrials finished in the red for the fifth time in six sessions, as mixed earnings curbed sentiment ahead of Friday's reading on unemployment.
The Dow Jones Industrial Average fell 11.05 points, or 0.1%, to 12705.41. The Standard & Poor's 500-stock index rose 1.45 points, or 0.1%, to 1325.54, and the technology-oriented Nasdaq Composite edged up 11.41 points, or 0.4%, to 2859.68. That Nasdaq has climbed 9.8% this year.
Among Dow components, Merck shed 0.8% after reporting fourth-quarter revenue that fell shy of expectations, and the report weighed on Pfizer, which fell 0.7%. Alcoa led among blue chips, climbing 2.2%, while Bank of America climbed 1.2%.
Data out Thursday showed initial unemployment claims decreased by 12,000, to 367,000, last week, slightly beating expectations. Friday brings a reading on the jobs market, with economists expecting January's nonfarm payrolls to increase by 125,000 and for the unemployment rate to hold steady at 8.5%.
"Most market participants recognize that things aren't that bad, but there are an awful lot of unknowns that are preventing us from going higher," said Douglas Kreps, portfolio manager at Fort Pitt Capital Group.
In corporate news, Dow Chemical fell 1.2% after the company reported fourth-quarter earnings that missed estimates. The chemical company also said it didn't expect material improvements in market conditions this quarter.
MasterCard rose 6.7% after increased card spending helped the company turn in core earnings ahead of expectations.
Abercrombie & Fitch skidded 14%, the worst performers on the S&P 500, after the apparel retailer indicated that fiscal fourth-quarter earnings would fall well short of expectations.
Fellow retailer Ann slid 6.7% after the company said fiscal fourth-quarter results would be below expectations, citing a "significantly higher-than-anticipated" promotional environment in its Ann Taylor stores.
Other retailers fared better. Gap projected fiscal fourth-quarter earnings ahead of estimates as Banana Republic outperformed the other segments and January same-store sales declined less than expected.
Shares jumped 11% and led the S&P 500.
Macy's raised its profit forecast for the fiscal fourth quarter and reported upbeat sales, signaling its recent strength continued through the holidays even as January same-store sales fell short of views. Shares advanced 3.7%.
Green Mountain Coffee Roasters shot up 24% after the company reported fiscal first-quarter earnings and revenue that were well above forecasts, citing strong demand for its Keurig single-cup brewing system.
Electronic Arts's fiscal third-quarter loss narrowed as the game developer's "Battlefield 3" and "FIFA 12" titles sold well, and results topped the company's October forecast. Shares surged 6.1%.
Qualcomm rose 2% after the semiconductor company's fiscal first-quarter earnings and revenue exceeded expectations, and its full-year outlook was above projections.
3) Top financial story of the day:
The number of planned layoffs at U.S. firms surged in January to its highest level in four months as retailers and financial firms cut jobs, a report on Thursday showed
Jobless claims fall, jobs market slowly healing-From Reuters
New claims for unemployment benefits in the United States fell more than expected last week, pointing to more healing in the nation's battered jobs market.
Initial claims for state unemployment benefits dropped 12,000 to a seasonally adjusted 367,000, the Labor Department said on Thursday.
Job growth has gained momentum in recent months and the unemployment rate dropped to a near three-year low of 8.5 percent in December.
Analysts will be watching Friday's report on January payrolls for insight into what it will mean for policy after the Federal Reserve last week left the door open to additional economic stimulus.
"This is certainly a positive in front of non-farm payrolls and further supports the view that the U.S. economy is creating more jobs with the prospect for a lower unemployment rate," said Michael Woolfolk, a currency strategist at BNY Mellon in New York.
Analysts polled by Reuters before Thursday's data expected the payrolls report would show the unemployment rate holding steady at 8.5 percent.
U.S. stock futures erased losses to turn positive after the data, while Treasury debt prices pared gains.
Economists polled by Reuters had forecast claims falling to 375,000. Claims have been lower than 400,000 for eight of the last 10 weeks, holding below a level associated with labor market healing.
The four-week moving average for initial claims, a trend measure that smooths out volatility, fell 2,000 to 375,750.
"It certainly suggests we will continue to see job growth at the higher end of the recent range (which has been between) 100,000 to 200,000," said Christopher Low, an economist at FTN Financial in New York. "If claims continue to drop then we should see job growth stronger than that."
Chairman Ben Bernanke, who is due to testify before lawmakers later on Thursday, has said the Fed was mulling further asset purchases to help foster stronger economic growth.
The number of people still receiving benefits under regular state programs after an initial week of aid fell 130,000 to 3.437 million in the week ended January 21, the lowest since September 2008.
Economists had forecast so-called continuing claims at 3.55 million.
The number of Americans on emergency unemployment benefits rose 100,392 to 3.022 million in the week ended January 14, the latest week for which data is available.
A total of 7.67 million people were claiming unemployment benefits during that period under all programs, little changed from the prior week.
A separate Labor Department report showed growth in U.S. nonfarm productivity slowed in the fourth quarter while wages rebounded, although the increase in hourly compensation pointed to only moderate inflation pressures.
4) Quote of the Day from Dave Ramsey.com:
I know of no more encouraging fact than the unquestionable ability of man to elevate his life by conscious endeavor. — Henry David Thoreau
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