Economic reports point to gradual recovery
WASHINGTON (AP) _ A report on unemployment claims and a forecast of U.S. economic activity pointed Thursday to an economy mending slowly, without the job growth needed to fuel a vigorous recovery.
The number of newly laid-off workers filing claims for unemployment benefits unexpectedly rose last week. But the four-week average for jobless claims, which smooths out fluctuations, fell. That was an encouraging sign that the pace of layoffs continues to decline. The four-week average is now at its lowest point since late September 2008, when the financial crisis hit with full force.
Separately, a forecast of economic activity rose for the eighth straight month in November, a private research group said, signaling the economic rebound will continue into next year.
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Stocks fall as dollar gains, FedEx disappoints
NEW YORK (AP) _ A stronger dollar and disappointing corporate news muscled stocks lower Thursday over concerns that the economy will struggle to recover.
Major stock indexes slid 1 percent Thursday, including the Dow Jones industrial average, which fell 133 points for its third straight loss. Treasury prices jumped.
The dollar climbed to a three-month high against the euro, a sign investors were seeking safety. Investor confidence was further sapped as Citigroup Inc. sold stock at a steep discount as part of a plan to repay government loans and a forecast from FedEx Corp. fell short of expectations.
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Citigroup stock sale shows investors still nervous
NEW YORK (AP) _ Citigroup's surprisingly low pricing of a stock offer this week provides a clear sign that investors are still nervous about the banking giant's ability to regain its financial health.
On Wednesday, Citigroup Inc. said it would sell 5.4 billion shares of stock at a price of $3.15 per share to help repay $20 billion in government bailout loans. That price was 9 percent below where shares were trading before the announcement.
The U.S. government balked at the deal, stepping away from selling a portion of its nearly 34 percent stake in Citigroup.
Analysts say Citi, which managed the underwriting of the offer itself, didn't have much of a choice but to take the hit of selling at such a low price because of uncertainty surrounding the bank.
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FedEx sees stumbling blocks before recovery
NEW YORK (AP) _ FedEx, the world's second-largest package delivery company issued a tepid outlook for the quarter that ends in February, saying it's not sure if strong holiday season shipping volume will hold up. But in the long run, it sees strong demand in Asia and Latin America leading the way to global economic recovery.