Stocks may be the best of a bad bunch - Financial Times Stocks may be the best of a bad bunch - Financial Times

Wednesday, June 13, 2012

Stocks may be the best of a bad bunch - Financial Times

Stocks may be the best of a bad bunch - Financial Times

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CANADA STOCKS-TSX rallies, but Europe uncertainty weighs - Reuters UK

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Global stocks mixed, dollar slips on weak U.S. data - msnbc.com

NEW YORK (Reuters) - Global stocks fell and the dollar edged lower on Wednesday as weak U.S. economic data and a still-simmering European debt crisis weighed on sentiment.

Investors snapped up safe-haven debt and gold prices rose toward $1,625 an ounce before paring gains. Oil prices also eased after initially rising on U.S. government data that showed domestic crude 9 edged down 191,000 barrels last week for the second straight week of declines.

Shares of JPMorgan rose above $35 at one point, the biggest contributor to the benchmark S&P 500, but then pared gains to trade up 2.1 percent at $34.49. No damning news came out of Chief Executive Jamie Dimon's testimony before Congress on the firm's multibillion-dollar trading loss.

Investors are expected to remain on tenterhooks ahead of a Greek vote on Sunday and on fears that Spain's financing problems may spread to Italy. The question of whether Greece will remain in the euro zone after the election and the potential impact of Europe's woes on global growth also affected sentiment.

"I would expect a fair amount of market volatility one way or the other, but I don't think the result of the election is going to be anywhere close to a resolution of the issues facing Greece or the issues facing European countries in general," said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles.

U.S. stocks traded near break-even for most of the session before falling late in the day. European stocks closed down while shares of emerging markets rose and an index of global stocks edged higher, helped by earlier gains in Asia.

The Dow Jones industrial average was down 96.19 points, or 0.77 percent, at 12,477.61. The Standard & Poor's 500 Index was down 10.71 points, or 0.81 percent, at 1,313.47. The Nasdaq Composite Index was down 17.35 points, or 0.61 percent, at 2,825.72.

In Europe, the FTSEurofirst 300 index of top regional companies closed down 0.3 percent at 990.18.

MSCI's all-country world equity index fell 0.2 percent to 300.73.

Wall Street opened lower as demand for building materials sagged and falling gasoline prices crimped receipts at service stations, dragging retail sales down 0.2 percent, the Commerce Department said.

April retail sales were revised to show a 0.2 percent drop instead of the previously reported 0.1 percent gain. Excluding the surge in auto sales, sales fell 0.4 percent, the biggest decline in two years.

The U.S. Labor Department said its producer price index dropped 1.0 percent in May as energy costs slumped 4.3 percent.

Oil prices initially rebounded after a report that crude inventories slipped last week less than forecast, while gasoline and distillate stocks fell, offsetting expectations of a build and helping crude oil to trade higher. But U.S. crude later fell and settled lower.

Brent crude settled down 1 cent at $97.13 a barrel.

U.S. crude futures settle down 70 cents at $82.62 a barrel.

"The market moved higher after the EIA data but the euro's strengthening against the dollar at nearly the same time may have been more responsible for crude's move higher than the data," said Michael Fitzpatrick, editor of industry newsletter Energy Overview in New York.

U.S. Treasuries prices erased losses and turned higher.

The benchmark 10-year U.S. Treasury note rose 19/32 in price to yield 1.5978 percent.

Yields on 10-year German bonds fell to 1.495 percent.

"Many now believe that the point of no return is getting nearer with the peripheral (European) economies in a somewhat irreversible dynamic, with their economies depressed and their access to capital markets shrinking," said Lee McDarby at Investec Corporate Treasury.

The dollar fell against the yen, while the U.S. dollar index was down 0.5 percent at 81.985, and the euro was up 0.7 percent at $1.2595.

Spot gold prices were up $8.76 to $1,618.20 an ounce.

(Additional reporting by Richard Hubbard in London; Editing by James Dalgleish, Dave Zimmerman and Dan Grebler)

(c) Copyright Thomson Reuters 2012. Check for restrictions at: http://about.reuters.com/fulllegal.asp



This Father's Day, Teach Your Kids Financial Responsibility - Huffington Post

As parents, we hope we're doing a good job raising our children -- teaching them right from wrong, instilling in them the desire to learn and demonstrating how to manage money responsibly. But what if they see us preaching one behavior while practicing another? What's to stop them from following in our sometimes misguided footsteps?

As Father's Day approaches, let me share a few things dads can do to teach their kids sound financial habits that will last them a lifetime and point out a few behaviors to avoid that you may not even be aware of.

First, try to set a good example with your own financial habits. If you consistently spend beyond your means, don't save for emergencies and don't follow a budget, you risk having your kids imitate your behavior or adopt the same attitude toward money, setting themselves up for problems down the road.

Ask yourself a few basic questions about financial habits they may be learning from you:

  • Do you avoid conversations about money with your kids because that's how you were raised, or because you don't feel qualified to give advice?

  • Do you pay your bills on time to prevent late fees and possible dings to your credit score?

  • Do you balance your checkbook regularly to avoid overdrafts and bounced checks?

  • When money is tight, do you choose wisely between needs and wants -- paying the utility bill vs. buying a pay-per-view event?

  • Have you set up an emergency fund -- and are you disciplined enough not to tap it for everyday expenses?

  • Are you sometimes caught off-guard by bills you should be anticipating (rent, insurance, car payments, income tax)?

  • If your family is experiencing financial difficulties (layoff, foreclosure, massive bills), are you having age-appropriate, non-traumatic discussions about the need for everyone to make sacrifices?

  • Do you complain about your job within their earshot or say you'd rather stay home with them but need to earn money? You could be setting them up to resent both work and money.

  • If college is on the horizon, have you had frank discussions about how it will be financed? Have you started a college savings fund, explored student loan programs or discussed contributions they'll be expected to make?

  • When your kids constantly break or lose expensive items or run through their allowance early, do you repeatedly bail them out with no consequences?

Okay, that's a lot of potentially negative outcomes. Let's concentrate on a few positive actions you can take that will encourage responsible financial behavior in your kids:

Use allowances to teach your kids how to handle money wisely, not as a tool to reinforce good behavior. Track their discretionary expenses (toys, candy) and non-discretionary (school supplies, clothes) expenses. Depending on their age and maturity level, decide which expenses they should be responsible for managing and dedicate a reasonable amount for each category in their allowances.

Start out slowly with only a few discretionary expenses, then gradually add others and increase their allowances as they become more confident. Don't be afraid to let them make a few mistakes -- that's part of the learning process. Better to stumble and recover now than in adulthood when the stakes are much higher.

A few other suggestions:

  • Use allowances to teach important life lessons. For example, build in dedicated percentages your kids must set aside for savings, charitable contributions and investments -- then involve them in choosing how the money is spent.

  • The same goes for cash gifts from the grandparents and tooth fairy visits.

  • When you use an ATM in front of young kids, explain that the money it spits out isn't free, but rather has been earned and saved by you. Also explain the penalty for withdrawing more than your account holds.

  • To encourage saving during these times of low interest rates, offer to match their savings at 50 percent. That way, when they're eligible for a 401(k) later on, they'll understand the concept of matching contributions and be more likely to enroll.

  • Teach by example. If money is tight and you have to deny your kids non-necessary items, give up something of your own that they know you'll miss.

  • Open a 529 Qualified State Tuition Plan or a Coverdell Education Savings Account to start saving for your children's education -- and let them know about it well before you start discussing college choices. To learn about 529 Plans, read the guides at FinAid and the Securities and Exchange Commission. IRS Publication 970 discusses both 529 Plans and Coverdell Accounts.

Father's Day is when children traditionally express love for their dads. Show how much you care in return by starting them out with a healthy, realistic attitude toward personal finances.

This article is intended to provide general information and should not be considered legal, tax or financial advice. It's always a good idea to consult a legal, tax or financial advisor for specific information on how certain laws apply to you and about your individual financial situation.


Follow Jason Alderman on Twitter: www.twitter.com/PracticalMoney



Global stocks, dollar fall on weak data, Europe - msnbc.com

NEW YORK (Reuters) - Global stocks and the dollar fell on Wednesday as weak U.S. economic data and concerns about Europe's long-simmering debt crisis weighed on sentiment.

Investors snapped up safe-haven assets such as gold and government debt. Oil prices eased after initially rising on U.S. government data that showed U.S. crude edged down 191,000 barrels last week for a second straight week of declines.

Shares of JPMorgan rose above $35 at one point, the biggest contributor to gains in the benchmark S&P 500 early in the session. JPMorgan's stock trimmed its gains to trade up 1.6 percent at $34.30, as no damning news came out of Chief Executive Jamie Dimon's testimony before Congress on the firm's multibillion-dollar trading loss.

Investors are expected to remain skittish ahead of a Greek vote on Sunday and on fears that Spain's financing problems may spread to Italy. The question of whether Greece will remain in the euro zone after the election and the potential impact of Europe's woes on global growth took a toll on sentiment.

"I would expect a fair amount of market volatility one way or the other," said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles.

"But I don't think the result of the election is going to be anywhere close to a resolution of the issues facing Greece or the issues facing European countries in general," he said.

U.S. stocks traded near break-even for most of the session before falling late in the day. European stocks closed down while shares of emerging markets rose and an index of global stocks edged higher, helped by earlier gains in Asia.

The Dow Jones industrial average closed down 77.42 points, or 0.62 percent, at 12,496.38. The Standard & Poor's 500 Index fell 9.30 points, or 0.70 percent, at 1,314.88. The Nasdaq Composite Index slid 24.46 points, or 0.86 percent, at 2,818.61.

In Europe, the FTSEurofirst 300 index of top regional companies closed down 0.3 percent at 990.18.

MSCI's all-country world equity index fell 0.1 percent to 301.08.

Wall Street opened lower after a report showed demand for building materials sagged and falling gasoline prices crimped receipts at service stations in May, dragging retail sales down 0.2 percent, the Commerce Department said.

April retail sales were revised to show a 0.2 percent drop instead of the previously reported 0.1 percent gain. Excluding the surge in auto sales, sales fell 0.4 percent, the biggest decline in two years.

The U.S. Labor Department said its producer price index dropped 1.0 percent in May as energy costs slumped 4.3 percent.

Oil prices initially rebounded after a report from the U.S. Energy Information Administration that crude inventories slipped last week less than forecast, while gasoline and distillate stocks fell, offsetting expectations of a build. But U.S. crude later fell and settled lower.

Brent crude settled down 1 cent at $97.13 a barrel, and U.S. crude settled down 70 cents at $82.62 a barrel.

U.S. Treasuries prices erased early losses and turned higher Prices as the weak data raised expectations the Federal Reserve may embark on more bond purchases to support the economy, a move that would underpin private demand for government debt.

The benchmark 10-year U.S. Treasury note rose 17/32 in price to yield 1.6063 percent.

Yields on 10-year German bonds fell to 1.495 percent.

"Many now believe that the point of no return is getting nearer with the peripheral (European) economies in a somewhat irreversible dynamic, with their economies depressed and their access to capital markets shrinking," said Lee McDarby at Investec Corporate Treasury.

The dollar fell against the yen, while the U.S. dollar index was down 0.4 percent at 82.423, and the euro was up 0.5 percent at $1.2574.

Spot gold prices were up $8.20 to $1,617.60 an ounce. U.S. COMEX gold futures for August delivery settled up $5.60 at $1,619.40 an ounce.

(c) Copyright Thomson Reuters 2012. Check for restrictions at: http://about.reuters.com/fulllegal.asp


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