Month: September 2012

The annual report on national global competitiveness is in, and it seems the United States has slipped again. The World Economic Forum placed the US at the 7th spot overall, falling from 5th in 2011.The highest rated nation, for the fourth consecutive year, was Switzerland, followed by Singapore and Finland. Both Germany and the Netherlands rated high enough this year to surpass the United States on the list.The report’s reason for the 7th place finish is the United States budget deficit and high national debt. Despite falling in the global rankings, the United States cumulative score did improved from last year’s report. For more news and analysis, follow us on twitter @fnnonline

In these tough economic times, people are working harder, and it’s showing. The Labor Department has announced a revision to its initial worker productivity reading, saying productivity went up 2.2% in the second quarter. The government had initially believed the average productivity per worker rose 1.6% in the quarter. Labor costs were also revised, with the figure rising by 1.5%, rather than the previously believed 1.7%.A rise in productivity is good for company profits, but it can make companies hire less as they try to get as much as they can out of their current workforce. Companies hiring less will ultimately add to the already high unemployment rate. For more news and analysis, follow us on twitter @fnnonline

Aeropostale (ARO) was upgraded to buy from neutral with a price target of $18 by Bank of America/Merrill Lynch, as the stock price is more attractive following the selloff. Shares are lower by about a tenth of a percent.

Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned dollars to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.

This year’s holiday shopping season may seem far off, but one company has announced a plan to help them beat the competition. Toys R Us has offered its customers free layaway from now until October 31st.With the free layaway, consumers will be able to buy toys without having to pay the full price of the item upfront. Toys R Us’s layaway policy lets customers pay only 20% immediately, and then pay 50% by the time 45 days have elapsed. The item must be paid for in full by December 16th. Free layaway is available with the company until October 31st, after which time customers will be charged a $5 fee for the service. Layaway plans have been increasing in popularity with the struggling economy, with many consumers being refused credit cards or having uncertain finances. Toys R Us’s layaway program might help the company compete with online retailers, as well as powerhouses like Wal-Mart, which allows its customers to lay away products but charges them fees to do so.

The Daily Ticker’s Aaron Task interviews Fusion IQ’s Barry Ritholtz

Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned dollars to make a purchase, is that they expect to make money. Today we look at one noteworthy recent insider buy.

Bad news for travelers planning to take Lufthansa in the near future. Cabin crew for the airline kicked off a second round of strikes today over pay and conditions, causing the company to cancel hundreds of flights. This follows a walk-out on Friday, which left about 26,000 passengers stranded.Lufthansa is Germany’s biggest airline, and the second-largest European airline. Trade union UFO, which represents about 2/3 of Lufthansa’s 18,000 cabin crew members, threatened full day walkouts as well as striking into the autumn or winter if workers don’t get a 5% pay increase and guarantees against temporary workers and outsourcing. Lufthansa, which is trying to implement a $1.9 billion savings program, has offered a 3.5% pay increase, and says it will not raise its offer from there. This wage dispute has gone on for 13 months. The cancellations, which grounded around 350 of the company’s 1,800 daily flights, will mostly affect service in Europe, but also carry over into places like Chicago and L.A. If the strike expands, it could cost the company over 12 million euros a day, or around 2 percent of full-year operating costs, according to Bloomberg. Lufthansa’s stock fell 1.8 percent in Frankfurt on this news in midday trading.

Smithfield Foods (NYSE:SFD) stock is popular in Tuesday’s trading after it posted first quarter profits that missed Wall Street’s estimates. The packaged food company posted EPS of 40 cents per share, lower than the 44 cents analysts were expecting. Revenue for the quarter came in at $3.09 billion, also below estimates of $3.15 billion. The company said the weak earnings was due to lower sales in its meat products which drives much of the company’s growth. The lower sales could be due to the higher prices of meat which was caused by higher crop costs due to the severe drought.

Dollar General (DG) reported that profits were higher, and raised its full year earnings forecast. The company, which prices most of its merchandise under $10, said it earned $214.1 million, or 64 cents per share, in the second quarter, up from $146 million, or 42 cents per share, in the same period last year.