Tag: market news

Exchange-traded funds entering new phase of growth

Posted on by The INO.com Team

The headlines about exchange-traded funds suggest there are no limits to the growth of these low-cost, easily traded alternatives to mutual funds.

Among the recent developments: ETFs have attracted at least $100 billion in new cash for each of the past six years, growing at a far more rapid pace than traditional mutual funds. ETF assets have doubled over the past three years to $1.4 trillion, with one study projecting they'll hit $3.5 trillion by 2016. ETFs have recently begun to appear as investment options in 529 college-savings plans and 401(k)s.

Yet obstacles are beginning to appear. It has become more difficult for fund companies to launch ETFs that are significantly different or lower-cost than what's already on the market.

"We're close to a tipping point in terms of numbers," says Todd Rosenbluth, director of ETF research at S&P Capital IQ. Continue reading "Exchange-traded funds entering new phase of growth" →

Stocks rise further as optimism prevails

Posted on by The INO.com Team

Stocks pushed higher Tuesday as investors remained optimistic that economic growth is picking up, but not so much that the U.S. Federal Reserve will start to wind down its stimulus program imminently.

Over the past few weeks, investors have been picked up by a wave of optimism over a range of issues including the prospects for the U.S. economy following a run of forecast-busting jobs figures.

That has pushed several indexes to record highs. The Dow Jones industrial average and the broader S&P 500 index both hit new highs on Tuesday.

Waning fears over Europe's debt crisis and the bold attempt by Japan's monetary authorities to shake off a two-decade economic stagnation have also helped. Continue reading "Stocks rise further as optimism prevails" →

U.S. medicine spending shows rare dip in 2012

Posted on by The INO.com Team

Spending on prescription medicines in the U.S. fell for the first time in decades last year, slipping as cash-strapped consumers continued to cut back on use of health care services.

Patients also benefited from a surge of new, inexpensive generic versions of widely used drugs for chronic conditions like high cholesterol, according to a new report.

Total spending on medications dropped to $325.8 billion last year from $329.2 billion in 2011. Likewise, average spending per person on medicines fell by $33, to $898 last year, according to the report from the IMS Institute for Healthcare Informatics.

"That's the first time IMS has ever measured the decline in the 58 years we've been monitoring drugs," Michael Kleinrock, director of research development at the institute, told The Associated Press. Continue reading "U.S. medicine spending shows rare dip in 2012" →

U.S. economic reports hold out hope for hiring gains

Posted on by The INO.com Team

Fewer people are losing their jobs. Employers are struggling to squeeze more work from their staffs. The U.S. is producing so much oil that imports are plunging, narrowing the trade deficit.

A string of data Thursday raised hopes for stronger hiring and U.S. growth in coming months. More jobs would spur spending and help energize the economy, which has yet to regain full health nearly four years after the Great Recession officially ended.

And an interest rate cut Thursday by the European Central Bank, if it helps bolster the European economy, could also contribute to U.S. growth.

The U.S. economic reports came one day before the government will report how many jobs employers added in April. Economists think the gain will exceed the 88,000 jobs added in March, the fewest in nine months.

The government said Thursday that the number of Americans applying for unemployment aid fell last week to a seasonally adjusted 324,000  the fewest since January 2008. Unemployment applications reflect the pace of layoffs: A steady drop means companies are shedding fewer workers. Eventually, they'll need to hire to meet customer demand or to replace workers who quit. Continue reading "U.S. economic reports hold out hope for hiring gains" →

ECB cuts benchmark interest rate to 0.5 percent

Posted on by The INO.com Team

European Central Bank President Mario Draghi isn't ruling out more central bank action to help the lagging eurozone economy even after the bank cut its key benchmark to a historic low.

Draghi said Thursday that the central bank for the 17 countries that use the euro would monitor all indicators and officials "stand ready to act if needed."

He did not specify what action might be taken but the remark appeared to leave open the possibility the ECB could cut rates even further.

The bank lowered its benchmark refinancing rate Thursday by a quarter-point to 0.50 percent at a meeting in Bratislava, Slovakia.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below. Continue reading "ECB cuts benchmark interest rate to 0.5 percent" →