White House warns of destructive $109 billion sequester
A White House report warns that $109 billion in across the board cuts at year start would devastate national security and core government functions. Sequestration would slice 9 percent from most Pentagon programs and 8 percent from many domestic programs, with broad impacts on air traffic control, border policing, investigations, food safety, and health research. The report blames congressional inaction and warns of a recession risk while noting exemptions for Social Security and Medicare limits.
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Gas prices crimp spending as Fed acts to spur growth
Rising gas prices depress U.S. consumer spending and threaten growth. The Fed moved to boost the economy with mortgage-bond purchases and near-zero rates through mid 2015. Analysts warn higher energy costs may lift inflation and squeeze real incomes, weighing on hiring and retail sales.
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iPhone 5 orders surge as delivery estimates rise
Apple began taking orders for the iPhone 5 at midnight Pacific time with promised delivery by next Friday. Four hours later analysts pegged delivery times at two weeks, signaling stronger than expected demand and an “iPhone 5 fever” in full swing.
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Markets End Week With Mixed Gains Across Indices
Friday’s trading showed the Dow up 53.51 points to 13,593.37 while the Nasdaq composite advanced to 3,185.83. In commodities, corn rose 7.25 cents to 7.81 per bushel, soybeans fell 8.25 cents to 17.39, wheat gained 25.25 cents to 9.48, and oil rose 69 cents to 99. Gold traded up 60 cents at 1,772.70, silver fell 1.22 to 34.66, and platinum stood at 1,713.70.
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