U.S. markets mixed Friday
NEW YORK, Dec. 31 (UPI) -- U.S. markets were mixed Friday after modest declines, and many brokers were expected to stay home or pack up early on the last day of trading for 2010.
No government reports were expected.
On Thursday, the Labor Department said weekly first-time unemployment benefit claims dropped under 400,000 for the first time since July 2008, ending 2010 reports on a positive note.
In late morning trading on Wall Street, the Dow Jones industrial average gained 13.55 points, 0.12 percent, to 11,583.26. The Standard & Poor's 500 index added 0.05 percent, 0.70, to 1,258.58. The Nasdaq composite index lost 0.34 percent, 8.93 points, to 2,654.05.
The benchmark 10-year treasury note rose 11/32 to yield 3.328 percent.
The euro rose to $1.3379 from Thursday's $1.3288. Against the yen, the dollar fell to 81.20 yen from Thursday's 81.58 yen.
Economists looking approvingly at 2011
WASHINGTON, Dec. 31 (UPI) -- Three prominent U.S. economic forecasters have pegged growth for the gross domestic product in 2011 at higher rates than 2010.
Moody's Analytics, which estimated growth for 2010 at 2.7 percent, forecasts growth next year at 3.9 percent. Goldman Sachs predicts a 3.4 percent rise in the GDP next year. Macroeconomic Advisers has an even rosier prediction, estimating growth at 4.4 percent for 2011, The Washington Post reported Friday.
An increasing number of economists are saying the recovery, which wobbled in the middle of 2010, is now on stronger legs. "We're making a transition to a broader, more durable recovery," said PNC Financial Services Group senior economist Robert Dye.
Stock markets edged into higher ground in 2010, the Dow Jones industrial average rising about 11 percent, while the Standard & Poor's 500 rose close to 13 percent. The Nasdaq composite index of tech-dominated stock did better, rising nearly 17 percent.
In the last weekly report of 2010, the Labor Department said first-time unemployment benefit claims fell to 388,000 in the week ending Dec. 24.
In November, pending home sales rose 3.5 percent, the National Association of Realtors said.
Economists are also pointing to two stimulus programs that have yet to take effect. In 2011, the extended George W. Bush era tax breaks will include a 2 percent payroll tax cut, putting more in workers' pockets each week. Long-term unemployment benefits were also extended for 13 months and effects of the Federal Reserve's $600 billion bond purchasing program announced in November will begin to be felt.
In the fourth quarter, lending to businesses began to improve for the first time in two years and consumers, for two years, have worked hard paying down debt.
"Americans have been de-leveraging for the past two years, and as a result households are much better positioned for the future," said Bernard Baumohl, chief global economist with the Economic Outlook Group.
China to ban private VoIP phoning
BEIJING, Dec. 31 (UPI) -- Chinese authorities said private Internet phone systems, such as Skype, would be banned in the future.
The Chinese Ministry of Industry and Information Technology did not say when the ban would take effect, but said the prohibition applies to all private Internet protocol phone systems, known as VoIP, except for two run by the government.
Currently, there are 93 VoIP providers in the country, The Financial Post reported Friday.
The Next Web reported the move was likely made to ensure the success of state-owned China Telecom and China Unicom and also to enable to the government to monitor communications among citizens.
Skype is expected to respond by attempting to strike a deal with the government, rather than give up trying to establish a presence in China, TNW reported.
Television makers settle case in Calif.
SAN DIEGO, Dec. 31 (UPI) -- Five television makers agreed to supply public agencies in California with $1.12 million worth of electronic equipment to settle false advertising charges.
The companies, LG Electronics, Sony, Panasonic, Samsung and Sharp, will also pay $1.25 million to cover court costs, the San Diego (Calif.) Union-Tribune reported Friday.
Seven California counties had sued the electronics companies at the prompting of the State Division of Measurement Standards, which reported that the television sets – measured on the diagonal – were not as large as the companies had advertised.
The companies agreed to change their practices as the case filed in Alameda County, Calif., concluded with the court mandating how televisions would be measured in the future.
