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In April retail sale in USA grew 1.2 percent from a year earlier, according to Thomson Reuters . Although main reason of the growth is attributed to Easter festival, warm weather and more than expected sales growth in Wal-Mart.  Without Wal-Mart, retail sales fell 2.7 percent last month. Still, several clothing stores reported that their sales also grew last month — or at least fell at a slower pace than before.   

Despite high dose of Emergency rate cuts and stimulus package fear of recession is back in the minds of the invester again. It seems that downturn that began in the housing and financial markets has spread to industries including hospitality, banking, insurance, telecommunications and retail. A key index of activity at non-manufacturing businesses fell in January to its lowest level since the 2001 recession. This news has brought down Dow Jones industrial average 2.9% at 360 Points. The broader Standard & Poor's 500-stock index was its worst single-day tumble since Feb. 27, 2007. IT lost nearly 3.2%. Indian ADRs, too, ended with significant losses. Sterlite, Infosys, Satyam, Wipro, ICICI Bank, HDFC Bank, MTNL, VSNL and Tata Motors tumbled 4-7% each.

US President and House leaders have agreed on a deal on Thursday for a $150 billion fiscal stimulus package, including rebates for most tax filers of up to $600 for individuals, $1,200 for couples and, for families, an additional $300 a child reports New York Times. During intense negotiations both side agreed on numerous compromises to secure the deal. The House is expected to approve the package and it is expected that by Feb 15 it would be sent to the President for signature. The paper further reports that full rebates of up to $600 or $1,200 would be paid to individuals earning up to $75,000 adjusted gross income or couples filing jointly and earning up to $150,000. Above that, rebates would be reduced by 5 percent for each $1,000 in income. On the business side, a package, which would cost $42.3 billionin 2008 would be used for giving 50% bonus deduction on new equipment that would normally be depreciated over many years. This measure is expected to encourage spending. To help the...

On Jan 17 the Dow Jones industrial average plunged 306 points , a 14.2 percent slide from its all-time high in October 2007. Some see it as clear sign of eminent recession. This sharp fall has taken place depite confidence expressed by the chairman of the Federal Reserve to Congress on Thursday that a recession can be averted. Subprime problem has another casualty yesterday in the form of huge fourth quarter loss of $9.8 billion by U.S.A 's largest brokerage firm Merrill Lynch. The loss at Merrill, which exceeded analysts’ forecasts, reflected $16.7 billion of write-downs on mortgage-related investments and leveraged loans. In order to comeout of the situation US policy makers are hinting at a rescue package, details of which are not clear yet. But possibly the package would attempt to leave extra money in people's hand by means of tax cut. The package is expected to include more than $100 billion in one-time tax rebates for individuals and an opportunity for businesses to rapi...

New York Times reports today that US President Gorge Bush while speaking at Union League Club in Chicago has admitted, that the nation faces “economic challenges” due to rising oil prices, the home mortgage crisis and a weakening job market. New York Times further reports that Mr. Bush stopped short of warning that the nation may be about to enter a recession. It also reported that a number of analysts now predicting that an economic downturn could be imminent. Read the artilce

Oil prices extend decline on worries about US economy (Live mint.com 7th Jan 2008)Oil prices fell Monday as a report of growing unemployment in the United States raised concerns of an economic downturn there that could curb demand for oil. The US Labor Department said the unemployment rate jump to 5% in December — its highest level in more than two years — from 4.7% in November. Analysts had expected December unemployment at 4.8%. “Many economists in the US have talked about the potential of the US getting into a recession,” said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. “This latest government report ... has added to the concerns about the economy.” Light, sweet crude for February delivery dropped 65 cents to $97.26 a barrel in Asian electronic trading on the New York Mercantile Exchange by midday in Singapore. The contract fell $1.27 to settle at $97.91 a barrel on Friday. More

Washington post reports that U.S. jobless rate in December has hit 5%, which is highest in two years. USA stock market has reacted strongly on the news. Dow Jones Industrial average was down nearly 164 points, or about 1.3 percent, after the first hour of trading; the Nasdaq has fallen more than 61 points, or more than 2.3 percent. The S&P 500 had lost nearly 1.5 percent. Read the Article

Washington Post reports that U.S. new car sales in 2007 slid to 16.1 million, the lowest level in a decade. In absolute term the sale is less by about 400,000 from the previous year. The paper further quotes Industry officials who expects even slower sales in the coming months because of the high price of oil and anxiety over falling home prices and increases in mortgage foreclosures. Meanwhile Toyata has climbed to 2nd position in car sales in U.S. pushing down Ford to 3rd position, while GM still holds the 1st position. Read in details

Washington Post reports that rising oil price, which is just about to touch $100 and new evidences of economic slow down have raised the specter of stagflation. Cobination of these bad newses forced the investors to move money into safer investments bringing down the Dow Jones industrial average by 1.7 percent, or about 221 points. Read in details

2008 outlook: Fasten your seatbelts Market strategists expect a volatile year for stocks and that the housing market will swoon. Sound familiar? Wall Street's top forecasters have some good news and bad news for 2008. Many think stocks will head higher but that unemployment will rise and the overall economy will slow. Read more

An expanding foreign appetite for capital goods such as tractors, medical equipment and electrical machinery is driving much of the boom. Much of that growth is in China, the fourth-largest export market for U.S. goods, where U.S. sales are growing 17 percent this year, according to federal officials. In the first nine months of this year, sales of U.S. aircraft to China are up 30 percent and plastics are up 37 percent. More

Although there is a surge in holiday spending over the weekend but the growth could be the lowest in last five years. Washington Post further reports that according to the National Retail Federation in Washington high Gasoline price ( at $3 a gallon) and rising food prices have discouraged shoppers from spending during November and December, which account for 20 percent of retailers' annual revenue. Read more

Americans’ debt woes expand as defaults on credit card bills soar (live mint.com 24th Dec 2007) Americans are falling behind on their credit card payments at an alarming rate, sending delinquencies and defaults surging by double-digit percentages in the last year and prompting warnings of worse to come. An Associated Press analysis of financial data from the country’s largest card issuers also found that the greatest rise was among accounts more than 90 days in arrears. Experts say these signs of deterioration of finances of many households are partly a byproduct of the subprime mortgage crisis and could spell more trouble ahead for an already sputtering economy. “Debt eventually leaks into other areas, whether it starts with the mortgage and goes to the credit card or vice versa,” said Cliff Tan, a visiting scholar at Stanford University and an expert on credit risk. “We’re starting to see leaks now.”

Likely Fed rate cut buoys market mood (Live mint.com 10th Dec 2007) Investors on Dalal Street are betting that the US Federal Reserve (Fed) will announce a further cut in interest rates when it meets this week, and have started accumulating some stocks because such a reduction could have a positive impact on the market. “Some of the domestic institutional investors such as mutual funds and insurance companies expect a strong rally in the wake of a Fed rate cut,” says Anita Gandhi, head of institutional business at Arihant Capital Markets Ltd, an institutional brokerage.