General Finance News

Markets were slightly down today, as the Greek debt negotiations dragged on without an end in sight. The Commerce Department also released a batch of economic data; including the fact that consumer spending were basically unchanged in December from November. Income, however, increased 0.5 percent, meaning that the savings rate of the nation went up. In corporate news, Wendy’s saw a 29.5 percent decline in net income last quarter, despite the fact that revenue rose 5.6 percent. Pep Boys announced that it had agreed to be acquired by Gores Group for $15 a share, almost 25 percent higher than the price the stock opened at this morning.

Word on the Street

• Rumor that the Greek debt deal will be delayed has investors nervous.
• Consumer spending stalled in December while income grew.
• Wendy’s revenue is up, but profits fell by almost one third.
• Pep Boys will be purchased by Gores Group.

Interesting Tidbits

• Blogging Declines Across the Inc. 500

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– The major U.S. index futures are pointing to a lower opening on Friday, as European debt fears have resurfaced amid Greece’s negotiations with its private sector creditors in a bid to avoid a default. Additionally, earnings news flow from the U.S. has been mixed. Market focus now shifts to the existing home sales report due to be released shortly after the markets open, with economists widely expecting a modest increase in sales. Given the overbought levels of the market, an extension of the recent gains is unlikely unless the housing data comes in well ahead of estimates some positive headlines concerning the European sovereign debt crisis emerge.

U.S. stocks extended their gains on Thursday, helped by multiple catalysts, including strong quarterly results from Morgan Stanley (MS) and Bank of America (BAC), positive European bond auctions and a steeper than expected drop in U.S.

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– The major U.S. index futures are pointing to a higher opening on Friday, with sentiment getting a boost from a modest retraction in European bond yields. Nevertheless, the sovereign debt crisis plaguing the eurozone region is simmering on, with no end close at sight. The nervousness is palpable in the European markets, which are currently trading mixed. Risk appetite is picking up modestly, as reflected by the rebound seen in commodity prices. Despite this, the still-unresolved nature of the debt crisis could keep the major averages within recent trading ranges.

After bouncing moving back and forth across the unchanged line in a narrow range until the mid-session on Thursday, the major U.S. averages declined sharply before going about a consolidation move in the afternoon.

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Ofgem: Over 1.5 million customers in energy bills debt Almost one million electricity customers and 700,000 gas customers owed money to energy companies at the end of 2010, putting extra pressure on those struggling with already high bills.

Energy watchdog Ofgem has revealed that despite a drop of 100,000 customers who owe money to their energy company, customers still owe a total of £500 million, the Mirror reports.The average amount owed to electricity companies jumped from £280 to £316 last year, while that gas debts increased from £288 to £310.”It is likely that customers are delaying payment of their energy bills due to other priorities,” Ofgem’s report said, according to the news provider.It suggested a more lenient approach due to the increase in energy bills and other financial worries which are stretching families’ incomes.A recent report from Halifax blamed the increase in energy bills for spiralling living costs – showing that a £68 increase in energy bills was putting a lot of pressure on households. Read more…