Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Pre-Market Primer: US Families Are 39% Poorer Thanks to Home Prices, but Employers Might Ramp Up Hiring Next Month


Median household net worth dropped 39% over three years, the Fed says. A private report suggests that hiring might speed up in the third quarter.

MINYANVILLE ORIGINAL Last weekend's news that Spain will receive outside funds to bail out its failing banks doesn't seem to have improved global markets. European equities suffered yesterday, as did bonds. Spain's 10-year bond yields jumped 15 basis points to 6.62% this morning, and the contagion is spreading to Italy. If Italy goes down the same road as Spain and needs a capital injection of its own, they might find Europe's rescue funds empty after bailing out Spain.

Today, European stocks are rising along with US futures as investors continue to hope for more accommodative monetary policy from central banks. Dow (^DJI) futures rose 0.37% to 12,356.00. S&P 500 (SPY) futures rose 0.26% to 1,303.70 and Nasdaq (^IXIC) futures are up 0.29% at 2,517.25.

The Federal Reserve said yesterday that the median net worth of US households fell from $126,400 in 2007 to $77,300 in 2010, a 39% drop. Middle class families, whose net worth is mostly tied to homes, suffered the most as home prices plummeted. The richest 10% of Americans saw their incomes fall by 5.3%, compared to 7.7% for all, but thanks to investments such as bonds, the net worth of the richest decile increased 1.9% to $1.17 million.

A report by Manpower (MAN), a recruitment company, said that US employers will likely boost hiring in the third quarter of this year. Last month saw the slowest job growth of the year.

OPEC member states will gather in Vienna on Thursday to coordinate production levels for the second half of the year. An OPEC report showed that members are producing crude oil at the highest level since 2008 in June. The group expects world economic growth to increase by 3.3%, but only by 1.4% among rich, industrialized countries.

"World oil demand growth in 2012 is expected at 0.9 mb/d," OPEC says. "The first half of this year experienced various economic developments world-wide, which placed a great amount of uncertainty on oil demand. The second half of the year is likely to experience an even greater degree of uncertainty. The upcoming driving season in the Northern Hemisphere might be affected by retail gasoline prices and economic development, leading to a further decline in world oil demand. The shutdown of Japan's nuclear plants is leading to more fuel and crude oil usage in the power sector. However, should Japan decide to bring back some of its nuclear power plants into service, the recent surge in the country's oil usage could be impacted."

Oil futures are trading down 0.34% this morning at $82.42/barrel. Reduced crude oil prices helped drive the price of imports to the US down 0.4% in May, while US export prices fell 1%, according to a Labor Department report released today.

This morning, the Wall Street Journal reported that JPMorgan Chase (JPM) executives were aware of the London Chief Investment Office's risky bets as early as 2010, when traders made some lousy bets in foreign exchange. The bank planned to roll back the unit's risk profile, but obviously failed to prevent multi-billion dollar losses where there were intended to be hedges. This might be more ammo to be used against CEO Jamie Dimon tomorrow when he testifies before Congress.

Yesterday at the Apple (AAPL) Worldwide Developer Conference, Apple unveiled its new line of notebooks with Intel (INTC) Ivy Bridge chips and Nvidia (NVDA) graphics. The new iOS operating system for iPhones and iPads will feature more integration with Facebook (FB). Previously, Facebook's mobile presence has been one of its biggest weaknesses. Google's (GOOG) toehold in the Apple ecosystem, Google Maps, will be absent from the new iOS.

Twitter: @vincent_trivett
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Featured Videos