Economy, Earnings & Sales Reports | featured news

Economic growth in China during the third quarter of the year is expected to have slowed as a result of government measures to curb inflation.

Mall-based chains continue to be hit hardest as consumers focus on necessities, but the warehouse club operator Costco’s results also missed analyst estimates.

Several major U.S. banks, led by Wells Fargo & Co, said the troubled economy drove credit losses higher, reducing profitability in the second quarter.

Stocks climbed at the open, with the market digesting a host of key earnings reports and awaiting an appraisal of the economy from Bernanke.

A cautious forecast from FedEx Corp. is giving investors another reason to worry about the economy. Stocks fluctuated in a tight range Wednesday after FedEx issued a weaker-than-expected profit forecast and downbeat comments about what it sees ahead for the economy.

Weak consumer spending continued in April, but some retailers posted sales gains, or slighter declines than in the past.

Stocks climbed as companies continued to report stronger-than-forecast results, though new data offered mixed signals on an economic recovery.

The U.S. economy shrank at its fastest pace since 1982 in the fourth quarter and corporate profits plunged a record $120.1 billion, pulled down by falling consumer spending and exports, government data showed on Thursday.

General Motors Corp. posted a $9.6 billion fourth-quarter loss Thursday and said it burned through $6.2 billion of cash in the last three months of 2008.

The Royal Bank of Scotland will later report what is expected to be the biggest annual loss in UK history.