Business highlights

  • Posted: Friday, December 28, 2012 12:27 a.m.
    UPDATED: Friday, December 28, 2012 12:31 a.m.

Ordinary folks losing faith in stocks

NEW YORK (AP) — Andrew Neitlich is the last person you’d expect to be rattled by the stock market.


He once worked as a financial analyst picking stocks for a mutual fund. He has huddled with dozens of CEOs in his current career as an executive coach. During the dot-com crash 12 years ago, he kept his wits and did not sell.

But he’s selling now.
Defying decades of investment history, ordinary Americans are selling stocks for a fifth year in a row. The selling has not let up despite unprecedented measures by the Federal Reserve to persuade people to buy and the come-hither allure of a levitating market. Stock prices have doubled from March 2009, their low point during the Great Recession.

It’s the first time ordinary folks have sold during a sustained bull market since relevant records were first kept during World War II, an examination by The Associated Press has found. The AP analyzed money flowing into and out of stock funds of all kinds, including relatively new exchange-traded funds, which investors like because of their low fees.

US jobless aid applications fall

to 5-year low
WASHINGTON (AP) — The average number of people seeking U.S. unemployment benefits over the past month fell to the lowest level since March 2008, a sign that the job market is healing.

The Labor Department said Thursday that weekly applications dropped 12,000 to a seasonally adjusted 350,000 in the week ended Dec. 22. The four-week average, a less volatile measure, fell to a nearly five-year low of 356,750.

Still, the Christmas holiday may have distorted the figures. A department spokesman said many state unemployment offices were closed Monday and Tuesday and could not provide exact data. That forced the government to rely on estimates. Normally, the government might estimate application data for one or two states. Last week, it had to use estimates for 19.

Toyota plans to sell 9.7 million vehicles in 2012

TOKYO (AP) — Toyota expects to sell a record 9.7 million vehicles this year, bouncing back by 22 percent from a disaster-struck 2011. It has set an even higher target of 9.91 million vehicles for 2013.

The numbers released this week underline Toyota Motor Corp.’s solid turnaround from supply disruptions caused by the earthquake and tsunami in northeastern Japan in 2011 that had hurt global production and sales.

They also underline the Japanese automaker’s ambitions to move past the woes from massive recalls that began in 2009, especially in North America.

US new home sales jump to fastest rate in 2 years

WASHINGTON (AP) — Americans bought new homes last month at the fastest pace in more than two and a half years, further evidence of a sustained housing recovery.

Sales of new homes rose 4.4 percent in November from October to a seasonally adjusted annual rate of 377,000, the Commerce Department said Thursday. That’s the fastest pace since April 2010, when a federal tax credit boosted sales.

New-home sales have also increased 15.3 percent over the past year, although the improvement comes from depressed levels. Sales remain below the 700,000 that economists consider healthy.

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