Business Update: Caution prevails

Discussion in 'Growing and Managing a Business' started by irahat, Oct 24, 2009.

  1. irahat

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    Oct 7, 2009
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    Starting with software giant Microsoft. It trounced Wall Street forecasts as the PC market recovers and more computers are sold with its Windows software. The news comes one day after Microsoft unveiled its new operating system, Windows 7.

    Online retailer,, also blew away analysts' predictions after the bell Thursday and says its bullish that consumers will be clicking their way through the holidays. Shares hit a lifetime high soaring almost 27 percent to close at over $118.

    The housing market really perked up last month. Existing home sales hit a two-year high. The government's popular $8,000 tax credit, which expires next month, powered much of the results. Senior Economist, Cary Leahey of Decision Economics says the report underscores a trend showing stability.


    "So stability is good news because this is an industry that's been at the epiceneter of all the problems and the very fact that it's getting up off of the floor after falling off a 20 story building that's the good news. And this report overstates the good news for one month."

    Meanwhile Federal Reserve Chairman, Ben Bernanke, warned banks may have to increase their capital reserves to lower future risk to the banking system. He also urged Congress to press ahead with regulatory reforms.

    On Wall Street - despite upbeat earnings news and a rebound in the housing market, weak industrial and energy shares dragged stocks into the red- sending the Dow below 10,000.

    For the week, stocks were lower snapping a two-week winning streak.

    Oil slid below $81 a barrel.

    In Europe - London's FTSE was the lone gainer adding over a half a percent.

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