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Savings Up But Not Enough

The savings rate is expected to hit nearly 10 percent soon. It had been around 5.5 percent in April and has steadily risen since then.

Why aren't people spending more? With Americans clearly saving more money now than in months past, most are still extremely timid about spending and investing. Experts are unsure how or what can change that.

The Dow bounced back later in the week after a very rocky start. Thursday saw the Dow Jones rebound and gain over 2 percent of its value.

What's in store for the future? Well, with the end of the quarter coming on Tuesday, many experts believe we will see another week ending in positive territory for the major markets as portfolio managers are eager to burnish their numbers for the quarter.

Oil still sits at just under $70 a barrel. The Dow has remained stagnant since its nearly 3-month rally indicating that the experts on Wall Street feel the economic recovery isn't quite here yet.

Which Cities Likely Won't Rebound Anytime Soon?

Texas cities Austin, San Antonio, Dallas and McAllen have not seen any economic growth so far this year. They were considered focal areas of the massive real estate bubble of the past few years. Once skyrocketing home prices in these Texas cities are to blame for a slow recovery.

Texas is not alone, however. Several key California cities will also have a difficult time in rebounding from the economic troubles. Fresno, Modesto, Salinas, Bakersfield, Stockton and Los Angeles all also saw collapses in housing markets in the past couple of years.

There are many indicators nationwide that home prices might be stabilizing again; however in many cities in Texas and California will likely take years for their economies to turn around.

Consumer Confidence Rising, But Is It Enough?

While down a bit from expectations, the increase marks the multi-month high and the strongest showing since September of 2008. Over the past three months, the confidence reports have shown an increase proving perhaps that the economy is set to rebound.

This report , however, also gauges inflation expectation, which has risen to its highest in months.

The five-year inflation outlook rose to just above 3 percent this month, the highest since October of last year. While the confidence numbers are are promising, the fact that inflation is still set to increase is worrisome to some analysts. Concern continues to grow that the federal government may not be doing enough to to help spur recovery.

Rebound! Dow Ends in Positive Territory After Steep Slide

Volume trading for the day was light, making the market susceptible to quick changes in direction. Fewer traders on the market floor are normally not a good thing, but yesterday it was partially responsible for the positive nudge sending the market closing in positive territory.

Prices recovered late in the day as trading wound down. Investors made the most of the day late in the day. The bulk of the trading was done in the last hour of trading. The rally signaled the market is still trying to decide how to proceed after it has seen substantial yet rather reserved gains over the past three months.

Confusion dominates the market still as many are left questioning exactly when the market will decidedly rebound from this recession.

By day's end on Monday, the Dow finished up nearly 0.1 percent. Every little bit helps as each day seen in the green and not the red helps.

Got a Job? Well, You May Want to Keep It!

Despite the increased percentage of unemployed, layoffs leveled off somewhat last month with employers only eliminating 345,000 jobs. That number marks the lowest slash in work force numbers since last September, nearly eight months ago.

The ease in layoff numbers point to a likely loosening the recession has had on the country even though overall unemployment percentage was up. It's the fourth straight month the layoff pace has slowed.

It's definitely not easy to get a job these days in America and that fact has only been continued into the month of May. Government officials have pledged to help bring down the high numbers by helping the unemployed with new training.

The U.S. economy has lost nearly 6 million jobs dating back to September 2007. The slowing of layoffs will still do little to cause companies to begin hiring again until they feel secure that the economy is improving.

It's Back!! Oil Nears $70 a Barrel

The huge inventories of crude reported earlier in the year had steadily pushed the price of crude down over several months to near all-time lows.

While signs have pointed that the global demand for energy has rebounded substantially, there is little confidence the trend will continue or that a full rebound is likely right now.

Most analysts feel the recent increase in oil value is inflated and will likely flatten and decrease in the near future. High energy prices could end up severely slowing an economic recovery. It's doubtful oil will rise above $70 now.

GM Files for Bankruptcy

It will stand as the largest industrial bankruptcy in history. As GM enters bankruptcy protection, the U.S. government has vowed to provide the necessary billions it will need in aid. It will also need protection for the taxpayers' investments without interfering with normal operations.

GM President Fritz Henderson will hold a news conference today following an address from President Barrack Obama at the White house.

Late Sunday the federal government said it would provide an additional $29 billion in aid to General Motors in an attempt to assist its restructuring. The process will likely take upwards of 90 days, and if successful, will allow GM to emerge as a much more profitable and viable company with a much leaner workforce and fewer number of plants. The company plans, however, on cutting nearly 35 percent of its workforce and its stock on will likely see huge losses this week.

The government should refrain from intervening in day-to-day management of GM, and will management to make critical decisions. Some analysts are hopeful GM will come out of this crisis a much more profitable and better-restructured company.

Home Sales Up; Inventory, Too

Single-family houses and condos saw higher sales last month. Though the gains were substantial over last month, they were still down nearly 10 percent from just a year ago.

Inventories, however, rose nearly 9 percent to roughly 4 million vacant homes. That's nearly a 5 percent increase in housing supply over the previous month.

While a rise in housing inventories in spring is typical, it appears the increase is not due to seasonal factors. Bank repossessions made up nearly half of sales across the nation last month.

The median price for existing homes now sits at around $170,000, marking a 15.5 percent year-over-year decline in price. The West is suffering the worst with median prices dropping to nearly 22 percent during the past few years.

Did Dow Spark Another Market Surge This Week?

Up only slightly this week, the markets did see positive gains for the week. But that can hardly be labeled a definite surge or comeback. This week saw substantial seesaws on Wall Street, with the Dow closing up nearly 3 percent one day and other days down the same percentage.

Results from Sears, Gap and Aeropostale helped finish trading on Friday to bring the Dow nearly even. This week's economic calendar will be a much better indicator of whether the markets are poised or in a position to stage another rally. Key reports are scheduled to be released that will focus on home sales and big-ticket manufactured goods.

Banks reduced borrowing last week and investment banks reportedly didn't borrow at all ,which has been the first time this has happened since September of last year.

Markets were closed yesterday for Memorial Day, and the short week will offer possibly far more turbulent trading than last week. Many analysts are not sure where the markets will go. We'll have a good indication of whether the market will have a positive or negative week by tomorrow most likely.

Which City Is Most Affordable?

Buying a house today could say the average home buyer 25 percent and up to 75 percent of what they would have paid just five years ago.

So, which U.S. city is considered the most affordable? Indianapolis currently holds the title. That marks the 15th consecutive quarter Indianapolis has led in home affordability. The city's above-average per capita income and relatively low home prices helped this city lead the nation again.

Conversely, New York tops the list of worst cities in which to live in terms of affordability. With only 20 percent of homes being considered "affordable" and below average pay, New York dominated the worst list along with other cities like San Francisco, Los Angeles and Honolulu.

Other cities near the top of the affordability list include Youngstown and Akron, Ohio, along with Grand Rapids, Mich.

Market's Rally Ends After 2 Months

It's a stark turnaround from last week, when traders continued a seven-week upward trend by closing out the week with positive gains. Traders found little incentive this week to buy stocks. Dropping oil prices and April's consumer-prices report pushed stocks down this week.

Many on Wall Street feel overwhelmed. The government stress tests, fluctuating oil prices and general confusion over the direction of the market has left many traders weary and not eager to trade.

Still, the Dow sits at 8,268 at close on Friday. That's up nearly 30 percent since February even though the market feel roughly 3.6 percent this week. The next couple of weeks could see government action from the results of the stress tests that might sway the markets toward more positive gains. Those actions, however, could also keep this new downward trend going.

What is clear is that the markets are still struggling and it is anybody's guess when things will turn around.

How Many Banks Passed the Stress Test?

The remaining 10 will need an unprecedented $75 billion investment to be viable again and survive the current recession.

Four of the banks -- US Bancorp, BB&T, BNYMC and Capital One Financial -- were sound enough to survive a prolonged recession. Those banks announced on Monday that they plan on releasing stock options to assist in helping repay the money loaned them by the government over the past nine months.

While many see the results as a good sign, some on Wall Street see the extra stocks being created and sold by the banks as potentially unsettling. Pouring extra stocks into the market may have an unwanted reaction on Wall Street, just as saturating the market with more bonds might further weaken the economy in the long run.

By November all the banks should be in a position to have passed the stress tests and be well on their way to recovery. Most believe that in two to three years the major banking corporations will be completely healthy and the U.S. will be well out of the current recession.

Stocks Gain Big Again -- Close Out Week On High

The U.S. Labor Department released unemployment numbers for April this week and the 539,000 reported is the fewest in the past six months and was substantially lower than expected.

The Dow is still down overall for the year even after the huge increases the past two months and the nearly 2 percent gain in Dow value for Friday. Some analysts predict that with a continued rally the market will see positive territory for the year by the end of May.

Crude Jumps to New High for Year

Production remains steady, with crude production for the first week of May rising by 600,000 barrels to sit at nearly 376 billion barrels. This lower than expected number of actual barrels in storage, however, is a clear indication that the demand for oil is rising.

Consequently, the price of gas per gallon has jumped more than 3 cents to $2.11 in the last week. But it is still below what is was a month ago and $1.50 below where oil stood per gallon a year ago. The demand for gas at the pump continues to fall, however. Recent increases at the pump come from refineries increasing their capacities.

Where does oil go from here? Oil should hover around $55 a barrel through the summer with the price per barrel expected to exceed $60 a barrel by year's end. Expect the prices at the pump to increase also but to stay well below levels from just a year ago.

World Waits for U.S. Bank Stress Test Results

A total of 19 banks are undergoing the so-called stress test and word has been pouring out that the results are overwhelmingly positive. Investors are remaining wary of the tests, however, and are not yet calling the market a bull market. The stress tests are expected to show that the tested banks need more investments but are capable of returning hefty profits. Banks like Citigroup and Bank of America Corp. are among those that will reportedly pass the test.

More than half the banks are expected to pass with flying colors while the rest will be asked to boost their capital base.

The recession is being seen as following a predictable pattern and the stress test is a potential indicator that markets are getting better and optimism in investment will lead the way in the second half of the year.

Markets across the globe are looking likely to follow suit. By the end of the fiscal year of 2009, the U.S. may just be getting close to ending the current recession.