Financial thoughts

Michelle Price was attending college and despite working two jobs was unable to put together enough money to buy a house for herself and her daughter.

That was before she participated in a program run by St. Louis County that gave her a $3,000 down payment, covered her closing costs and provided a zero-interest second mortgage. She was able to buy a three-bedroom, two-bath house in Spanish Lake for $165,000.

Individuals and families that meet income guidelines and complete a home-buying counseling course may become first-time buyers for as little as $500 down. Price, 49, said she couldn’t be more pleased with the Plantation Court house she bought last year.

"I really like it," she said. "I’d been in an apartment for 15 years. My house has a big kitchen with an open breakfast and dining area. It has a living room and a full basement, even though it’s unfinished."

Bank of America financed $100,000 of the purchase price with the county-run program financing the rest, Price said.

"I got a good interest rate," she said. "It’s fixed for 30 years."

About 200 individuals and families take part each year in the affordable housing program known as the St. Louis Home Consortium.

The consortium, formed in 2003, includes unincorporated St. Louis and St. Charles counties, Jefferson County, and the cities of Florissant; O’Fallon, Mo.; St. Charles and Wentzville. The city of St. Louis has a similar but separate program.

The Department of Housing and Urban Development gives the consortium about $4 million a year for down payments and second mortgages for first-time home buyers. Income limits apply. To get help in St. Louis County, for example, an individual’s annual income may not exceed $38,000. A family of four cannot earn more than $54,300.

Darlene Rich, a community development manager for the county, runs the consortium. She said the second mortgages — forgivable after five years in Wentzville, Florissant and St. Louis and Jefferson counties — act as "gap financing" for the buyer guaranteed payday loans.

After a bank or other lender approves a program participant’s primary loan, a consortium member purchases a second mortgage equal to the difference between the home’s appraised value and what the buyer can afford, Rich said. If the buyer, for example, can afford a $100,000 mortgage on a house valued at $125,000, the consortium member provides a second loan of $25,000.

Buyers also can use the $8,000 federal tax credit for first-time home buyers.

Participants must complete a home buying-counseling class conducted by one of three not-for-profit housing agencies that also are approved as the program’s lenders.

Second-mortgage foreclosure rates are low, less than 0.5 percent, said Tyrone Turner, acting director of housing and asset management for Better Family Life, one of the three approved lenders.

"Plus, the classroom part, I think, is really crucial, especially for those persons who have never purchased a home before," he said.

Participants learn the basics of mortgages, credit, insurance and even get tips on home maintenance.

In St. Louis County, three small developments are geared toward the affordable housing program. They are Villas at Woodson Ridge in Woodson Terrace, Savannah Heights in Jennings and Glenechort Homes in Wellston. Second mortgages on the homes there range from $25,000 to $42,000.

Turner said the housing slump dropped the number of participants in his agency’s share of the consortium’s mortgage program to about 75 last year from a peak of "well over" 100 in 2006. The $8,000 federal tax-credit for first-time home buyers and the slowly recovering economy will bring the number back to about 100 this year, he said. "There are still people buying homes. There are still people going to work every day."

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No faxing fast cash advance gets you cash fast and easily.

Social gaming leader Zynga Inc. has taken $180 million in capital from various investors, with the largest portion coming from the Russian firm Digital Sky Technologies, which this year also made a $300 million investment in Facebook Inc.

Others in the round included new investors Andreessen Horowitz and Tiger Global and existing investor Institutional Ventures Partners. Previous investors include Kleiner Perkins Caulfield & Byers, Union Square Ventures, Foundry Group and Avalon Ventures.

A portion of the new capital will be used to fuel Zynga’s growth and the rest will provide liquidity for employees and investors, Zynga said in a press release saving account payday loan.

Founded in 2007, San Francisco-based Zynga has grown at a spectacular rate with games including FarmVille, Café World, Zynga Poker, Mafia Wars, YoVille, FishVille and the new PetVille, currently the fastest growing social game online.

Zynga’s games are available on social networks such as Facebook, MySpace, Bebo, Friendster and Tagged, as well as on Yahoo and the iPhone.

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As the debate over pension reform in Canada heats up, the financial and investment industry is warning the government against a one-size-fits-all approach and urging politicians to improve the existing system.

The Investment Funds Institute of Canada (IFIC), the Canadian Bankers Association, and the Financial Advisors Association of Canada, dubbed Advocis, are among the groups that would like to see improvements in employer-sponsored pension plans and RRSPs (registered retirement savings plans.)

Multi-employer pension plans could be another solution for the challenges facing Canada’s retirement savings and income system, Dean Connor, president of Sun Life Financial Canada, said Thursday.

Pension laws should be amended to allow non-affiliated employers and the self-employed to take part in large multi-employer plans, Connor said. Employees could be automatically enrolled, with an opt-out provision made available.

"Getting it right will ensure that future generations of Canadian retirees can spend their golden years in security, comfort and dignity," Connor said in his address to the Economic Club of Canada.

Federal Finance Minister Jim Flaherty will meet with his provincial counterparts in Whitehorse next week to talk about pensions.

The financial industry is also awaiting a report by a federal-provincial task force on pension reform. The group consists of officials from B.C., Alberta, Manitoba, Ontario and Nova Scotia.

Meanwhile, Ontario is in the midst of its own pension reform. Finance Minister Dwight Duncan tabled draft amendments Wednesday, the first of two pieces of legislation meant to modernize the province’s pension laws.

Studies show that only one-third of Canadian employees are in an employer-sponsored pension plan. That has some calling for improvements to private plans, while others argue that the public system needs to be more robust easy payday loans. Federal Liberal Leader Michael Ignatieff has been touting the idea of a supplemental Canada Pension Plan fund.

"The CBA believes that the savings system in Canada is not broken and there is not a pressing need for a new one-size-fits-all retirement savings program that would duplicate systems and infrastructure that are already in place," the Canadian Bankers Association wrote in a research paper issued last month.

While more research is needed, "some conclusions are already clear," the CBA said. "Canada has a strong private sector retirement system that, with some targeted fixes, could be even more effective in helping Canadians plan and save for retirement."

The CBA recommends making RRSPs more attractive, enhancing financial literacy and updating rules for employer-sponsored plans.

Defined-benefit pension plans promise employees a specific monthly benefit upon retirement, whereas defined-contribution plans give assurances only on the amount of money that companies and employees will invest upfront. These are becoming more popular as employers look to cut costs and shift the investment risk of running a retirement plan to workers.

"We think there are improvements that could be made to defined-benefit programs, defined-contribution programs, and RRSPs. Whether you have a supplementary plan or not, those changes should be considered and moved on," said Barbara Amsden, IFIC’s director of strategy and research.

Advocis argues that making defined contribution plans or group RRSPs more accessible would help Canadians save for retirement, said president and chief executive Greg Pollock. As for a supplemental CCP fund, "it may be that we need both."

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The Dubai government said on Monday it was not responsible for the debts of Dubai World, dealing a blow to creditors’ assumptions that the Arab emirate would guarantee the conglomerate’s liabilities.

“Creditors need to take part of the responsibility for their decision to lend to the companies,” said Abdulrahman al-Saleh, director general of Dubai’s Department of Finance. “They think Dubai World is part of the government, which is not correct.”

In its first statement since the crisis began, Dubai World, the government-controlled holding company at the heart of the storm, said a restructuring would involve $26 billion in debt and mostly affect its property firms, Nakheel and Limitless.

Other firms, such as DP World, Jebel Ali Free Zone and Istithmar World would not be included in the restructuring because they were financially stable, it said in a statement released by e-mail late on Monday night.

The previously unreleased figure of $26 billion may help markets to grapple with the scope of the crisis following estimates that the restructuring could affect $59 billion or more in liabilities.

United Arab Emirates stocks plunged on Monday as investors waited for clarity on Dubai’s request for a delay until May 2010 on repaying billions of dollars in debt issued by Dubai World and its Nakheel unit, developer of three distinctive palm-shaped islands in the emirate.

European shares fell as investors worried about sovereign financial crises, with the FTSEurofirst 300 off 1.4 percent. But the U.S. dollar fell against the euro after the United Arab Emirates promised liquidity, easing worries about default.

Saleh’s remarks in an interview to Dubai TV, a station owned by the ruler of Dubai, came after UAE markets closed.

“They have confirmed there is going to be a restructuring and are doing what they can to differentiate between the government and companies,” said Mohieddine Kronfol, managing director at Algebra Capital.

“It doesn’t take away from the fact that you have a major potential event that is unraveling. People’s expectations aren’t going to be met with this announcement.”

The UAE’s central bank pledged financial support, helping to steady global markets.

The central bank promised additional liquidity to local banks and an official in Dubai’s oil-exporting neighbor, Abu Dhabi, said on Sunday it would offer selective support to Dubai firms.

Without referring directly to the Dubai World debt problems, the UAE’s central bank governor said on Monday there was no cause for concern about local banks, which he said had proven themselves able to weather the global crisis.

“I have advice for foreign investors. They should study available investment opportunities and conduct realistic feasibility studies to make sure they are real opportunities with no risk,” the state news agency WAM quoted Sultan Nasser al-Suweidi as saying.

Michael Ganske, head of emerging market research at Commerzbank in London, said a default, which could ultimately benefit the region, “is becoming more likely. 

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OTTAWA – After hunkering down throughout most of the recession, Canadian businesses began lining up with consumers at the bankruptcy office in September, according to government data released Friday.

The Office of the Superintendent of Bankruptcy reported that 489 businesses had filed for insolvency during the month, a 31.6 per cent increase from August.

The increase from September 2008 was only 1.6 per cent, but Scotiabank economist Derek Holt said the jump between August and September of this year was worrying.

"What concerns me is that it cut across so many different sectors of the economy,“ Holt said.

"Part of it was the elevated Canadian dollar and what it’s doing to export competitiveness, but the other part is just the catch-up from weak domestic fundamentals."

The export-oriented manufacturing sector saw a 71-per-cent increase in bankruptcies from August, but retail business insolvencies were up 69 per cent, and insolvencies in the high-tech sector increased 119 per cent.

Still, Holt said Canadian businesses did better than households.

The September story for consumers built on a weakening trend that began with the recession last fall, with personal bankruptcies spiking to 15,465 in September, an increase of 45.5 per cent from last year.

On a monthly basis, household bankruptcies and proposals for settlement with lenders were 28.4-per-cent higher than in August.

The bankruptcy office suggested seasonal variations may have accounted for a portion of the increase, noting there were more insolvencies in September than in August in seven of the last 10 years.

Regionally, consumer bankruptcies rose highest in the western provinces, although Ontario and Quebec were not far behind.

While bankruptcies are considered a lagging indicator that reflects weak labour markets, the continued hard times by Canadian households bodes ill for retailers during the holiday shopping season.

As well, the bankruptcy numbers also provide more evidence that the economy is not rebounding strongly from the recession.

Bank of Canada governor Mark Carney warned Thursday night after a speech in New York that he now expects the quarter – the July-September period – to fall short of his forecast of a two-per-cent bounce.

"Recent indicators suggest somewhat softer growth relative to that two-per-cent projection but the expectation is that the overall profile of the growth in that projection – so accelerating growth in the fourth quarter and into 2010 for Canada – remains valid," he told reporters.

Some economists have warned that the third quarter could be negative, meaning that the recession hadn’t ended as of September. Although most agree with Carney that last three months of 2009 will see improvement.

BMO economist Robert Kavcic said while the odds favour positive growth in the third quarter, it will be weak at less than one per cent.

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Two of the largest U.S. apartment landlords said on Thursday they see something in their sector that’s been missing for the past few years — a little optimism about the future.

While not declaring an end to falling rents and declining net cash generated by their properties, the heads of industry leaders Equity Residential and AvalonBay Communities Inc said they are seeing increased demand for some of their apartments.

“While we expect operating performance to remain weak near term, there are signs that the weaknesses in both the economy and in some of our operating metrics are beginning to moderate,” Bryce Blair, AvalonBay chairman and chief executive, said during a conference call with analysts.

Both real estate investment trusts have buildings in key U.S. cities and held conference calls following the release of their third-quarter results.

The U.S. apartment sector has been in a nosedive for more than a year, as job growth, the key driver of apartment demand, has been replaced by hemorrhaging unemployment. Because of their short leases, the apartment sector is quick to feel market softness, yet also rebounds quickly.

To keep or attract tenants, landlords have been offering months of free rent and other concessions.

AvalonBay said its properties in Washington, D.C. seem to be improving, while those in the New York metropolitan area are about the same. The West Coast is still seeing deep declines.

Overall occupancy in its buildings improved throughout the third quarter to 96.2 percent in September from 95.9 percent in August and 95.8 percent in July. Early indications show October occupancy hovered in the 96 percent territory, it said payday advance online.

“The fourth quarter of last year and first quarter of this year, the world fell apart. Everything just fell off a cliff,” Sandler O’Neill analyst Alexander Goldfarb said. “We’re past that. We’re not seeing the bottom just fall out anymore. The base is sort of solidifying.”

During the third quarter, AvalonBay’s revenue was off 4.5 percent from a year earlier for properties it has owned for more than a year. Net operating income, or cash the properties generate before financing payments are made, fell 8.5 percent.

Despite the decline, AvalonBay noted some improvements in the third quarter. Occupancy and availability have returned to historically normal ranges.

Concessions fell by half compared with both a year ago and a quarter ago. The net rent for new move-in leases was 9 percent lower than a year earlier. But that was better than the 12 percent decline in the first half of 2009.

Still, AvalonBay said it expects rents to continue to fall into 2010. For the year, AvalonBay anticipates revenue down 3.5 to 3.75 percent while net operating income will be about 7 percent lower than last year.

“We’re beginning to see improvements in some leading indicators, yet we still have a way to go before returning to positive revenue growth,” Blair said.

Equity Residential results were better because the company was able to keep operating expenses down by more than it had expected, and it raised its full-year forecast. 

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Blue chips led a bigger stock market rally Thursday, as better-than-expected results from four components pushed the Dow industrials above 10,000 again and reassured investors about the ongoing corporate reporting period.

Investors took in stride announcements from the Federal Reserve and the Obama administration’s pay czar regarding curbing executive pay.

The Dow Jones industrial average (INDU) gained 132 points, or 1.3%, closing at 10,081.31. The S&P 500 (SPX) index rose 11 points, or 1%. The Nasdaq composite (COMP) gained 14 points, or 0.7%.

Stocks dipped in the early going, before managing a blue-chip led charge starting in late morning. Gains were broad based, with 26 of 30 Dow stocks rising, including 3M, McDonald’s, AT&T and Travelers, all of which reported better-than-expected results.

Travelers jumped almost 8% and was one of many financial stocks that gained on the day. The KBW Bank (BKX) index rose 3.4%.

Stocks have been seesawing over the last week, with the Dow topping and giving up the 10,000 level and the S&P struggling around 1,100. Both major indexes, as well as the Nasdaq, are at nearly one-year highs.

Stocks tumbled Wednesday after influential analyst Richard Bove of Rochdale Securities cut his rating on Wells Fargo, sparking a steep selloff in the banking sector.

But the selloff proved to be short term, with investors again using any selling as an opportunity to buy on the dips, as has been the trend for months.

Stocks have been on a tear since bottoming in March at the low point of the financial market crisis. Since hitting a more than 12-year low on March 9, the S&P 500 has risen just short of 60% as of Wednesday’s close.

Despite persistent calls for a selloff of anywhere from 10% to 15%, any declines in the period have been moderate, in the 3% to 5% range.

Additionally, the declines have been met with a rash of buyers eager to return. For now, those trends are still in place, said Kenny Landgraf, principal and founder at Kenjol Capital Management.

"There are still a lot of people who missed the move who are now looking to increase their risk exposure," he said. "That impact, combined with improving fundamentals, is going to keep the positive trends intact."

Pay crackdown: Obama administration "pay czar" Kenneth Feinberg called for the seven biggest federal bailout recipients to cut in half total compensation for their top executives.

Additionally, the Federal Reserve proposed a broad overhaul of pay policies at 28 of the largest U.S. banks. The review is part of its effort to temper some of the triggers to the risk taking that exacerbated the credit crisis.

The two announcements had almost no impact on the market, perhaps because an overhaul had been in discussion for months.

Corporate results: Dow component Travelers (TRV, Fortune 500) said its quarterly profit more than tripled, easily topping analysts’ estimates. The insurer also lifted its full-year forecast to a profit of between $5.30 and $5.50 per share. Shares jumped 7.7%.

Fellow Dow component AT&T (T, Fortune 500) reported a better-than-expected third quarter profit thanks to the impact of Apple’s iPhone, for which it has been the exclusive carrier. Wireless revenue jumped 10% in the quarter. Shares gained 0.6%.

Dow component McDonald’s (MCD, Fortune 500) reported higher third-quarter earnings that topped estimates on weaker third-quarter revenue that missed estimates. Shares rose 2%.

3M (MMM, Fortune 500), also a Dow component, said third-quarter earnings and revenue fell from a year ago, but both were above analysts’ estimates. Shares gained 3.2%.

Other big stocks boosting the Dow included Boeing (BA, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Exxon Mobil (XOM, Fortune 500), Procter & Gamble (PG, Fortune 500) and IBM (IBM, Fortune 500).

Merck (MRK, Fortune 500), the fifth Dow component to report Thursday morning, said its earnings and revenue rose from a year ago and topped estimates. Shares of the drugmaker were barely higher.

So far, 167 companies, or 33% of the S&P 500, have reported results. Profits are currently on track to have fallen 19.2% versus a year earlier, according to the latest from Thomson Reuters. Revenue is expected to have dropped over 10% from a year ago.

Other company news: Microsoft (MSFT, Fortune 500) launched the newest version of its operating system, Windows 7. The tech behemoth, a Dow component, is hoping that users who have been running XP for years will switch to the new system — and forgive it for the disappointing performance of Windows Vista in 2007.

Microsoft reports quarterly results Friday.

Economy: Around 531,000 Americans filed new claims for unemployment last week, down from 520,000 the previous week. Economists surveyed by Briefing.com were expecting a bigger drop, to 515,000.

Continuing claims, a measure of those who have been receiving benefits for a week or more, fell to 5.92 million from 6.02 million in the previous week. Economists were expecting claims to fall to 5.97 million.

The index of leading economic indicators (LEI) rose 1% in September after rising a revised 0.4% in the previous month. Economists thought it would rise 0.8%.

The U.S. Federal Housing Finance Agency’s housing price index fell 0.3% in September after rising 0.3% in August. Economists thought it would rise 0.3%.

World markets: Global markets were mixed. In Europe, London’s FTSE 100 fell 1%, France’s CAC 40 lost 1.4% and Germany’s DAX gave up 1.2%. Asian markets ended lower with the Japanese Nikkei down 0.6%.

Bonds: Treasury prices tumbled, raising the yield on the 10-year note to 3.42% from 3.38% late Wednesday. Treasury prices and yields move in opposite directions.

Currency and commodities: The dollar fell against the euro, weakening again after it fell to a 14-month low Wednesday. The dollar gained versus the yen.

The dollar had risen in the morning, pressuring dollar-traded commodity prices. Prices remained lower in the afternoon, even as the dollar turned mixed.

U.S. light crude oil for December delivery fell 18 cents to settle at $81.19 a barrel on the New York Mercantile Exchange, edging off a one-year high.

COMEX gold for December delivery fell $5.90 to settle at $1,058.60 an ounce. Gold has surpassed records repeatedly this month due to the weak dollar and longer-term worries about inflation.  

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Is the largest one-time economic recovery effort in U.S. history creating jobs?

According to new reports from governors across the country, it is. Republicans in Congress say it’s not, and the debate is getting louder.

States and other recipients of stimulus funding have handed in their first assessments of the $787 billion recovery act in recent days. While the Obama administration plans to make these reports public by month’s end, some governors have released their initial evaluations.

In California, stimulus funds have created or saved more than 100,000 jobs through the end of September, according to Gov. Arnold Schwarzenegger. The nation’s most populous state — the world’s eighth largest economy — has been awarded $12.7 billion in recovery money and has spent $5.3 billion so far.

"The funding will not only save and create jobs, but it will also help stimulate our overall economy, improve our transportation infrastructure and help us reach our environmental goals," said Schwarzenegger, adding that the state submitted 5,747 reports from agencies and others who received funds from the state.

Minnesota said that 11,800 jobs — including 5,900 in education, 1,200 in public safety and 900 in transportation — were created or saved. The state has spent more than $1.6 billion in stimulus funds so far.

In Tennessee, which has spent $215 million, the tally is more than 7,700 jobs.

And in Oregon, more than 8,000 jobs have been saved or created. The recovery act provided the state "a much needed parachute for what was a free falling economy," said Gov. Ted Kulongoski, adding that the state has spent $1 billion of its stimulus funds.

Overall, the federal government has so far made available $256.3 billion, while $110.7 billion has been spent.

Exact job creation numbers elusive

Exactly how many jobs are being created or saved with stimulus funds is a difficult figure to pin down, however.

The White House last month said the recovery act is responsible for more than 1 million jobs. This estimate includes jobs funded directly with stimulus money, as well as those that exist indirectly, such as the deli workers who supply lunch to contractors on stimulus construction jobs.

The states’ reports, however, include only direct jobs, so the figures are likely to be even smaller.

On top of that, governors are required to report jobs by hours of employment rather than by the number of people working. So someone hired for a short-term gig might only be counted as a fraction of a job.

Pennsylvania officials, meanwhile, say that more than 7,000 people are working on transportation and water infrastructure projects funded by stimulus dollars. But under the federal rules, the state will report that 1,000 jobs were created, said Gov. Edward Rendell.

Also, the impact of tax incentives, increased unemployment benefits and funding for programs such as Medicaid are not included in the assessments.

Still, the recently filed reports — which also include data from companies, organizations, cities and counties — will offer the first hard figures of jobs created. They will likely be scrutinized by both sides of the political aisle.

‘Where are the jobs?’

House Republican leaders last week stepped up their attacks on the administration, claiming its stimulus initiative has been a failure. Instead of creating jobs, they contend, the nation has lost nearly 3 million private-sector positions and the unemployment rate is nearing 10%.

"It is now evident that the massive ’stimulus’ spending bill enacted months ago has been unsuccessful," GOP leaders wrote to the White House. "The American people are right to ask: Where are the jobs?"

The rising unemployment rate has prompted calls for the Obama administration to do more to encourage businesses to step up their hiring. The Republicans want to stimulate small business job creation with a variety of measures, including allowing firms to take a tax deduction equal to 20% of their income.

Republicans are not alone in their call to do more to promote job creation. The Economic Policy Institute, a labor-oriented research group, last week called on the administration to institute a refundable tax credit for employers of up to 15% of wages for each new hire over the next two years. The organization also called for pumping more money into states to create jobs.

The White House, however, maintains that the stimulus package has stopped the hemorrhaging of jobs and has turned around the economy’s direction.

Last month, the president’s top economic advisers said the recovery act helped turn around the economy. They pointed to the fact that the number of jobs lost in the third quarter averaged 256,000 per month, two-thirds less than the country sustained at the beginning of the year.

"Thanks largely to the Recovery Act … we have walked a substantial distance back from the economic abyss and are on the path toward economic recovery," Larry Summers, director of the National Economic Council, wrote Monday in response to the Republican leaders’ letter. "Most importantly, we have seen a substantial change in the trend of job loss." 

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Stocks rallied Thursday, with the major indexes flirting with 2009 highs, after Dow component Alcoa posted better-than-expected earnings and a report showed an unexpected drop in jobless claims.

The Dow Jones industrial average (INDU) rose 61 points, or 0.6%. The S&P 500 (SPX) index gained 8 points, or 0.8%, and the Nasdaq composite (COMP) climbed 14 points, or 0.6%.

Stocks ended mixed Wednesday as the previous two-day rally lost steam. Dow component Alcoa (AA, Fortune 500)’s after-the-bell announcement helped revive investors Thursday, starting off the financial reporting period on a positive note.

Stocks steadily moved higher as the session wore on, with the Dow briefly posting triple-digit gains, as 21 of 30 components rose.

"I think the market is clearly moving on expectations of better-than-expected earnings," said Tom Hepner, financial adviser at Ruggie Wealth Management. "But I’m just not sure we’re going to see that. There are still plenty of reasons to think that the market has gotten ahead of the recovery."

A weak dollar, along with rising oil and gold prices, gave a lift to dollar-sensitive multi-nationals such as Dow components 3M (MMM, Fortune 500), GE (GE, Fortune 500) and Johnson & Johnson (JNJ, Fortune 500). The oil rise lifted Chevron (CVX, Fortune 500), Exxon Mobil (XOM, Fortune 500) and other commodity names.

Gold closed at a record $1,056.30 an ounce and hit an electronic trading high of $1,062.70 during the day Thursday.

Market breadth was positive. On the New York Stock Exchange, winners beat losers by nearly three to one on volume of 1.28 billion shares. On the Nasdaq, advancers topped decliners five to four on volume of 2.42 billion shares.

Results: Third-quarter S&P 500 earnings as a whole are expected to decline more than 20% from a year ago, with materials, energy and industrials leading the decline. That means S&P 500 earnings will have slumped for nine straight quarters, the longest streak since earnings tracker Thomson began calculating the numbers.

But separate from the big picture, Wall Streeters are looking to see if individual companies are starting to see any earnings growth, beyond the impact of cost-cutting overnight pay day loans. In the second quarter, more than 70% of companies reported results that topped estimates, due to reducing costs. But few market-moving companies reported sales growth or revenue that topped estimates.

Cost-cutting is expected to continue to drive results this quarter, but topline growth could be improving at least in some sectors, if Alcoa is an indication.

The aluminum maker reported quarterly earnings and revenue that dropped from a year ago, but handily beat estimates. Shares rallied in extended-hours trading and also gained 2% Thursday.

Economy: Around 521,000 Americans filed new claims for unemployment last week versus forecasts for 540,000, the Labor Department reported. The number was the lowest in more than 9 months. Around 554,000 Americans filed unemployment claims in the previous week.

Continuing claims, a measure of those who have been receiving benefits for a week or more, fell to 6.040 million from 6.112 million the previous week.

The Commerce Department said wholesale inventories fell 1.3% in August versus forecasts for a drop of 1%. Inventories fell 1.6% in the previous month.

World markets: Global markets rallied. In Europe, London’s FTSE 100 gained 0.9%, while France’s CAC 40 and Germany’s DAX both gained 1.3%. Asian markets ended higher.

Currency and commodities: The dollar fell versus the euro and yen, extending its recent slide against a basket of currencies.

U.S. light crude oil for November delivery rose $2.12 to settle at $71.69 a barrel on the New York Mercantile Exchange.

COMEX gold for December delivery rose $11.90 to settle at a record $1,056.30 an ounce, the third straight record high for the precious metal.

Bonds: Treasury prices tumbled, raising the yield on the 10-year note to 3.24% from 3.18% late Wednesday. Treasury prices and yields move in opposite directions.  

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Let’s try this again.

When Group of 20 leaders meet in Pittsburgh this week, they will call for a coordinated global effort to tighten financial regulation to prevent future financial collapse.

That sounds a lot like the same thing they said at the previous two meetings they convened over the past year in April and last November.

"We’ll discuss some of the steps that are required to safeguard our global financial system and close gaps in regulation around the world — gaps that permitted the kinds of reckless risk-taking and irresponsibility that led to the crisis," President Obama said last week.

Leaders will probably walk away from the Pittsburgh summit with a general agreement on at least two priorities: Requiring banks to build stronger safety nets for their balance sheets and getting tougher on executive pay in order to curb risky practices. They may even set some deadlines — as in next year or several years from now.

"There’s little more you can expect from a meeting like this," said Benn Steill, director of International Economics at the Council of Foreign Relations. "Even I’d be a little uncomfortable with them trying to do more, because we’re a ways away from a consensus domestically on what the numbers should be."

European concern at pace of change

A White House senior adviser, speaking to reporters last week, defended G-20 progress on global regulatory reforms. For one thing, nations have been focused on the more immediate task of stabilizing their economies.

"If you asked people then what they thought the situation would be in September, they probably thought it would be worse than it is now," said Michael Froman, deputy national security adviser for international economic affairs.

Froman also stressed that just getting all the nations to agree on regulatory reform principles is an accomplishment.

"We should not necessarily underestimate what the significance of countries coming together and saying, ‘Given the lessons of this crisis, here are the policies we agree to pursue going forward, some of which require adjustment in our approach to our economic policy,’ " Froman said. "That’s a fairly significant innovation in international cooperation."

However, some European officials are worried about what they see as a lack of progress.

A group of regulators and academics called the European Shadow Financial Regulatory Committee sent the G-20 a letter this week warning that proposals on the table "are not likely to substantially reduce the likelihood of future crises."

"We are concerned that not enough has been done," said Harald Benink, a banking professor at Tilburg University in the Netherlands who chairs the group.

What will they do?

Earlier this month, U.S. Treasury Secretary Tim Geithner lobbied G-20 finance ministers to endorse a key reform effort: Requiring bigger capital cushions at financial firms. Such reserves can protect banks against losses and are considered important for preventing another financial crisis.

The idea is among those at the top of the list for the Pittsburgh meeting.

While nations agree about the need for boosting reserves, the debate will likely center around how best to do it. The more controversial question of how big capital reserves should be is not expected to be decided.

The United States would prefer to pass its own capital rules and have other countries follow suit, said Eswar Prasad, an international economist at Cornell University. The Europeans would prefer a multi-national process with all nations work together, more or less, as equals.

"The Europeans want to be very involved in developing those standards, so they’re not going to be as enthusiastic as they might be," Prasad said.

The more high-profile regulatory proposal will be over executive pay — and how to tackle it.

The French, among others, have been calling for global caps on executive pay, but the Obama administration isn’t budging on that issue.

"I think the president has been pretty clear that he supports a robust approach to executive compensation, but has been reluctant to sort of set individual compensation levels," Froman said.

International experts say they don’t expect the G-20 to endorse pay caps. Instead, the leaders are likely to give a nod to a set of principles that would encourage countries to decouple bonuses from risky behavior, while adding more disclosure of pay to regulators or shareholders.

Morris Goldstein of the Peterson Institute for International Economics said that the G-20 could create a compromise that satisfies all members by linking executive pay issues to stronger capital requirements. If financial firms are forced to increase capital requirements, it means they’ll have fewer profits, and less available for bonuses linked to profits.

Experts also say that the G-20 will also talk about the need for coordinated regulation of some of the kinds of complex financial products that were sold by Lehman Brothers and AIG (AIG, Fortune 500). However, the countries are not likely to reach agreement on how to do it.

Finally, experts believe the Pittsburgh meeting will feature discussion of broad, tricky issues of rebalancing different G-20 member economies.

The United States wants China to spend more and depend less on exports, and other nations want the United States to quit living on debt. But the meeting is not expected to produce a concrete plan for rejiggering the imbalances. 

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