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The article reports on U.S. technology industries in advance of second quarter earnings due to be announced in early July 2009. It is noted that the high technology sector performed better than other industries during the global financial crisis of 2008-09 and subsequent recession. The author concludes that the quarterly earnings reports will forecast the possibility of continued growth.

The article reports that U.S. stock prices fell significantly for a second consecutive day. The Dow Jones Industrial Average was down 1.8 percent. Investors reacted to another record price for petroleum futures of $133.17 a barrel and to the publication of the minutes of the April 29-30, 2008 meeting of the U.S. Federal Reserve Board which indicated that the board will not cut interest rates in the near future.

The article reports that the chief financial officers (CFO) of an increasing number of U.S. corporations are reporting a slowdown in consumer spending on their goods and services, leading to a decline in profits for the first quarter of 2008. The firms reporting this development included clothing manufacturer Jones Apparel Group and the credit card company American Express Co.

The article reports that an unexpectedly poor quarterly earnings report from General Electric (GE) led to a sharp drop in the company's stock price and in U.S. stock markets in general. GE Chief Executive Officer Jeffrey Immelt said he now expected to profit to grow just 5 percent in 2008, only a month after forecasting double-digit growth. GE's large and diversified operation means that investors consider it a bellwether indicator of economic conditions.

The article examines the relationship between stock prices and the price of petroleum futures in commodity futures trading. The two relatively risky investments have both risen more or less equally in 2009, but in the week of September 21-25, 2009, oil prices fell far more sharply than did stocks. Stock prices, which depend on investor sentiment, can increase to far higher levels than petroleum futures, as the rising price of petroleum products eventually damages demand.

The article discusses the U.S. housing market. A Census Bureau report on new house construction starts for August, 2009 is expected to show an increase over totals for June, 2009 of 3.3 percent. An end to the decline in house construction that followed the collapse of the real estate bubble could significantly add to growth of U.S. gross domestic product.

The article discusses U.S. employment and its effect on stock prices. The Bureau of Labor Statistics will present its August employment report on September 4, 2009, and most economists forecast continued job losses. Other economic indicators such as manufactures have improved in the summer of 2009. It is forecast that continued weakness in employment would end the 2009 stock price rally.

The article examines U.S. housing prices and home sales. An end to the continued fall of housing prices is seen as a necessity for ending the recession, but housing indexes for January, 2009 are expected to show continued declines in both prices and house construction due to the huge inventory of unsold houses left by the collapse of the real estate bubble.

The article examines the market for U.S. government securities. Prices for U.S. Treasury bonds and other securities remain high, as investors seek a safe haven in the midst of the financial crisis. The need to finance the large budget deficits created by the recession, however, could eventually cause prices to fall and the cost of borrowing to increase significantly for the U.S.

The article focuses on prices of coal commodity futures and their effect on the stock prices of coal mining firms such as Arch Coal and Peabody Energy. Coal companies have benefited from rising prices for coal, but coal futures on the New York Mercantile Exchange fell 30 percent in July, 2008. The decline is thought to be temporary due to U.S. economic weakness.

The article examines the dramatic fall in stock prices of May 20-21, 2008. The volatility index (VIX) traded on the Chicago Board Options Exchange has risen far less than during the financial crisis of early March, 2008, indicating the selloff may be limited. At that time, investors feared a general unraveling of the financial system. The current decline is driven by a more limited problem, the rising price of petroleum.

The article presents an evaluation of U.S. Federal Reserve Board monetary policy. Economic indicators suggesting that inflation could increase have led some investors in the federal-funds futures market to bet that the board will raise interest rates sometime in 2008. This is seen as unlikely. The core of current inflation is growth in foreign economies, something which is only slightly affected by the board's monetary policies.

The article evaluates the U.S. balance of payments figures for March, 2008 to be released by the Commerce Department on May 9, 2008. The trade deficit has been shrinking due to reduced demand for imports and a growth in exports helped by the decline in the dollar. Economic weakness in Europe and Japan, however, could end this promising trend for the U.S. economy.

The article focuses on the Pigou Club, a lobbying group founded by economist Greg Mankiw, former adviser to U.S. President George W. Bush. The group advocates fighting the rising price of gasoline by increasing taxes on it, arguing that the higher price would depress demand, eventually lowering the price. The group includes unlikely political allies such as Alan Greenspan and Al Gore. It is noted that Mankiw's idea, while economically sound, is politically impossible.

The article examines the earnings report for the first quarter of 2008 by the appliance manufacturer Whirlpool. The company reported a 20 percent decline in profit for the period compared to 2007. Chief Executive Officer (CEO) Jeff Fettig said that lower consumer confidence was depressing demand for appliances, and said the industry was in a severe recession.

The article examines the continuing fall in the value of the American dollar. The currency's weakness in foreign exchange has been a boon to the profit statements of multinational corporations such as Caterpillar and McDonald's, whose foreign earnings swell when expressed in U.S. dollars. This benefit is temporary, as the dollar's weakness also creates inflation which damages the U.S. economy.

The article reports that U.S. stock prices declined significantly after General Electric (GE) issued a surprisingly poor earnings report for the first quarter of 2008. The Dow Jones Industrial Average was down 2 percent as GE's stock price fell 13 percent. GE's announcement damaged investors' hopes that the economic damage created by the fall in U.S. housing prices would be limited to the financial services industry.

The author offers opinions on international finance. Foreign reserves of U.S. dollars are high and interest rates low, a combination which former Federal Reserve Board chairman Alan Greenspan blamed for creating the housing bubble. U.S. Treasury securities are in demand as investors seek safe havens during the global credit crunch. While this is unlikely to reflate housing prices, the author notes it creates conditions for another round of speculation, perhaps in commodities.

The article examines the quarterly reports of the first major corporations to make their earnings statements for the first quarter of 2008. Alcoa, the first to do so, reported a 52 percent decline in profit compared to the same quarter of 2007. Computer chip maker Advanced Micro Devices and delivery company UPS both issued warnings profits would be lower than expected. This suggests U.S. stock prices may suffer further declines as overoptimistic investors get more bad news.

The article reports that the California State Teachers Retirement System, a $165 billion pension trust which holds 5 million shares of stock in the financial services firm Morgan Stanley, will stage a proxy fight at the annual stockholders' meeting on April 8, 2008. The fund will not vote for Chairman and Chief Executive Officer John Mack for re-election to protest his compensation level. This may be the first of a series of such fights at corporate meetings.

The author offers opinions on U.S. stock prices. The decline in prices in 2008 is seen as likely to contribute to further weakness in the economy. Consumers have been selling stock to finance consumption as borrowing has become more difficult. This means they will eventually lower the spending which is the foundation of the economy.

The article focuses on the stock price of the computer software firm Oracle. One of the symbols of the high technology stock bubble of the late 1990s, Oracle has become something of a safe haven for investors in 2008, particularly since half its revenues come from foreign operations. The company is trading at a reasonable 15:1 price-earnings ratio, and its stock has risen 14 percent since March 4, 2008.

The article presents an evaluation of the consensus of U.S. stock price forecasting for 2008. The Standard & Poor's 500 index companies are selling at a 16:1 price-earnings ratio, close to the long-term historical average. Forecasts that corporate profits will grow significantly in the second half of 2008 do not account for the effects of a recession.