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Prices at the pump can vary widely among states, due in large part to vastly different levels of gasoline tax.

Click here to find out gasoline prices and taxes state by state.

Gene Bloch
CNN New York Managing Editor

A weed sprung up among those “green shoots” this morning. Consumer confidence declined unexpectedly in September, raising concerns about how retailers will fare this holiday season. The Conference Board’s index fell to 53.1 from a revised 54.5 in August. Economists were looking for a reading of 57. "Consumers remain quite apprehensive about the short-term outlook and their incomes," said Lynn Franco, director of the Conference Board Consumer Research Center. "With the holiday season quickly approaching, this is not very encouraging news."

The news on housing this morning is more encouraging. For a third straight month, home prices increased in July, according to the S&P Case-Shiller index. That measure of prices in 20 cities rose 1.6 percent in July from the previous month. Prices are down 13.3 percent year-over-year, but that was a smaller decline than expected.

Stock prices are slightly lower in the early going today – one year ago today the Dow Industrial Average suffered its worst point-decline in history, down nearly 778 points, as the financial crisis deepened.

How safe is your money in the bank? Bank accounts are insured up to $250,000 by the Federal Deposit Insurance Corporation, but after nearly 100 bank failures this year alone, the FDIC needs to be replenished. What the best way to do that? Refilling those coffers is the subject of a FDIC board meeting today in Washington. The Wall Street Journal reports the FDIC will propose that banks pay their fees upfront for the next three years to restock the FDIC’s insurance fund.

But with the banking industry still reeling from the financial crisis—is this the right time to hit them up for that kind of cash? Poppy Harlow reports in today’s Breakdown.

Wall Street bonuses are poised to rebound. With the financial sector recovering, banks face a conundrum: Big bonuses could spark a backlash, but small bonuses could cause top talent to flee.

Good news on gas prices: AAA reports the average price of regular unleaded dropped 1.2 cents to $2.487 a gallon ($2.49 for graphics). That’s the 8th straight decline.

Gas is down 39 percent from the record price set in July 2008.

And finally, if you’re filling up with Starbucks – get ready for instant coffee. That’s right, starting today the chain will begin selling a “ready brew” called Via at all U.S. locations. Starbucks has struggled to compete with lower-priced rivals such as Dunkin Donuts and McDonald's as consumers have become more price-conscious amid the weak economy. Via, which the company began rolling out earlier this year in Seattle and Chicago, is sold in packs of three cup-sized servings for a suggested retail price of $2.95 or $9.95 for a 12 pack.

On CNNMoney:

* 7 percent raises for nonprofit CEOs. Median salary for executives climbed 7% in 2008 - and one had his compensation jump 99%.

* Should you hire a career coach? Paying for a pro may make sense – but exhaust free options first.

* Even bad reviews boost sales. Think letting customers post cranky reviews of your products will scare away sales? Here's the surprising truth.

Andrew Torgan
CNN Financial News Producer

Fed Chairman Ben Bernanke says that the economy is about to start growing again, although he cautioned it will be a slow recovery with continued high unemployment in the near term.

Speaking at an annual symposium in Jackson Hole, WY, Bernanke echoed a statement made by the Fed earlier this month, saying that "economic activity appears to be leveling out, both in the United States and abroad."

Bernanke went a step further though, indicating that "prospects for a return to growth in the near term appear good."

But the central bank chief warned that problems remain in financial markets around the globe, and that with banks facing "substantial" additional losses ahead, businesses and consumers will continue to have trouble accessing credit.

Home sales spike

Sales of previously-owned homes, the biggest portion of the housing market, soared more than 7% in July - the largest monthly increase in 10 years.

The National Association of Realtors says home sales rose 7.2% to a seasonally adjusted annual rate of 5.24 million last month, from a pace of 4.89 million in June. That’s the fourth-straight monthly increase and the highest level of sales since August 2007.

Of course, homes should be selling. Prices have fallen more than 32% from their peaks, set in the summer of 2006. Plus, mortgage rates that are near historic lows make the cost of purchasing a home lower than they've been in nearly 20 years.

State unemployment rates improve

The number of states posting a decrease in the unemployment rate in July more than tripled from the previous month.

The Labor Dept. says 17 states and the District of Columbia reported a drop in unemployment rates in July, compared with 5 states in June. Increases in unemployment rates were reported in 26 states, and 7 states posted no change from the previous month.

While the report showed improvement for the battered labor market, the changes in unemployment rates were very modest across the board: overall, unemployment rates didn't change much from June to July.

Michigan had the highest unemployment rate at 15%, but that was down 0.2 percentage point from June. Michigan has been especially hard hit by the collapse of the U.S. auto industry and the housing meltdown.

Rhode Island posted the second highest unemployment rate at 12.7% and Nevada rounded out the top three with a 12.5% rate.

The national unemployment rate fell to 9.4% from 9.5% in June, the first decline in that reading since April 2008.

Oil surges to 10-month high

Oil prices soared to their highest level since October today as investors grow hopeful that a recovery of the world economy is in sight.

Crude topped $74 per barrel. Oil hasn't traded that high since Oct. 20, 2008, when it reached an intra-day peak of $76.12.

All told, oil has surged by two-thirds this year after closing out 2008 at $44.60 per barrel.

Follow the money… on Twitter: @AndrewTorganCNN

GM reveals its first electric car, the Chevy Volt.

Andrew Torgan
CNN Financial News Producer

General Motor' says its Chevrolet Volt, the electric-drive car that's expected to go on sale in late 2010, is projected to get an estimated 230 miles per gallon in city driving.

That exceptionally-high government mileage rating could give the Volt a major boost. For the first time, car buyers will easily be able to compare electric cars with ordinary gas-powered cars.

"Having a car that gets triple-digit fuel economy can and will be a game changer for us," GM CEO Fritz Henderson said this morning at a press conference showing off the ‘Volt.’

Determining fuel economy for what is primarily an electric car is a tricky matter, and General Motors has been working with the Environmental Protection Agency for years on the issue.

Basically, you will be able to drive the Volt for about 40 miles using its lithium-ion batteries. For those driving less than that, gas mileage is essentially unlimited. It is only after 40 miles that the Volt will start using gasoline.

Stocks struggle ahead of Fed announcement

Stocks on Wall Street opened to the downside and kept sliding as the Federal Reserve's two-day policy meeting got underway today.

The central bank is widely expected to hold rates steady at historic lows near zero. In its closely scrutinized statement, policymakers are expected to say that economic activity is picking up, but that they remain cautious about the outlook. The Fed is not expected to say anything too specific about what its exit strategy may be after putting so much stimulus money into the financial system.

The Fed’s announcement is due around 2:15 p.m. Wednesday.

‘Toxic assets’ still a threat to recovery

The economy may show signs of life, but so-called “toxic assets” are still a major threat to any recovery, a bailout watchdog group warned today.

If the economy worsens and unemployment rises further, the troubled assets on bank balance sheets could lose even more value, according to the Congressional Oversight Panel, which keeps tabs on the $700 billion bailout of the financial sector.

The report reminds Congress that the bailout was initially pitched to help deal with troubled assets, hence the name: Troubled Asset Relief Program. Yet the TARP program has not relieved banks of their troubled loans.

The bailout money has instead been used to help banks boost their capital to withstand future losses. Capital injections help ease pressure and potentially free up money for lending - but the “toxic assets” are still festering.

Productivity jumps 6.4%

A new report shows employers are trying to get as much as they can out of workers these days, a move that could pave the way for better growth down the road.

Worker productivity rose 6.4% during the second quarter at its fastest rate in six years. But it doesn't mean more goods were produced. Instead, the gains came because employers are cutting jobs and hours faster than output is declining.

Labor costs are often a company’s biggest expense. But last quarter, labor costs plunged at the fastest pace in nine ears.

Gas prices shift into reverse

After 20 straight days of increases that drove price higher by nearly 19 cents, gas prices dropped by 2-tenths of a cent to $2.643.

The average price of a gallon of gas is now down $1.471 - or 35.7% - from the record high price of $4.114 that AAA reported on July 17, 2008.

The highest gas prices are in Hawaii ($3.197).  The cheapest are in South Carolina ($2.424).

Bank overdraft fees to total $38.5 billion

Banks will collect a record $38.5 billion in overdraft fees this year, with nearly all the revenue paid by just 10% of customers, according to a research report released Monday.

The windfall is nearly double the $19.9 billion collected in 2000 as overdraft fees drift higher despite the recession, said Mike Moebs,  CEO of research company Moebs Services.

The national median overdraft fee rose to $26 from $25 in 2008, while larger Wall Street banks charge a median of $35, Moebs said.

Follow the money… on Twitter: @AndrewTorganCNN

Andrew Torgan
CNN Financial News Producer

As the health care debate rages among lawmakers, in town hall meetings across the country and on every broadcast and cable network, CNNMoney.com has drilled down into a report that found more than half of the $2.2 trillion the United States spends on health care each year is a waste of money.

According to the most recent data from accounting firm PricewaterhouseCoopers' Health Research Institute, there are 16 different areas in which health care dollars are squandered.

But in talking to doctors, nurses, hospital groups and patient advocacy groups, six areas totaling nearly $500 billion stood out as issues to be dealt with in the health care reform debate, including unnecessary tests, inefficient claims processing and medical errors.

GM teams with eBay

More than 225 General Motors dealers in California will begin selling cars and trucks through the eBay online auction site as part of a four-week trial.

Under the program, which begins Tuesday, consumers will be able to bargain with dealers for Chevrolet, Buick, GMC and Pontiac cars and trucks from model years 2008, 2009 and 2010. The program ends Sept. 8.

The new car shopping website, gm.ebay.com, will feature a selection of up to 20,000 new GM vehicles at what the companies promise are "competitive prices."

Shoppers will be able to buy cars outright at the advertised price using the site's "Buy It Now" option, or they can suggest a price under the "Best Offer" option, which may then be negotiated with the dealer.

http://gm.ebay.com

Stocks off to cautious start

Stocks on Wall Street opened lower as investors expressed caution following a rally that has pushed the Dow and the S&P 500 to 9-month highs.

No major economic reports are on tap today, giving investors time to digest the recent rally that’s been fueled by a spate of positive earnings surprises and economic news that showed stabilization.

Later in the week, Investors will be looking ahead to a two-day Fed meeting and earnings reports from big retailers like Wal-Mart and Macy's.

Gas climbs nearly 19 cents in 20 days

Gas prices continue to climb, with the national average up nearly 19 cents over the last 20 days.

According to AAA, the national average price for a gallon of regular gasoline edged up 0.2 cents overnight to $2.645. Prices have increased every day since July 21, when the national average stood at $2.458 a gallon. During that time, the national average has risen 18.7 cents, or 7.6%.

he highest gas prices are in Hawaii ($3.179).  The cheapest are in South Carolina ($2.424).

The spike comes as the price of crude oil has been pushed higher by signs of economic stabilization and the rally on Wall Street.

Follow the money… on Twitter: @AndrewTorganCNN

Andrew Torgan
CNN Financial News Producer

In these tough times, we’re all cutting back on everything from eating out to taking a vacation. But there’s one thing that millions of us seem to be able to afford: an iPhone.

We spent $1.7 billion dollars on iPhones in just the last three months.

Apple sold 5.2 million iPhones last quarter, including the new 3GS model. That’s more than seven times the number the company sold a year ago.

Sales are so strong that Apple’s having a hard time keeping up with iPhone demand. And even though iPod sales slipped from a year ago, they still topped 10 million players.

Heath care in the spotlight

President Obama holds a prime time press conference at the White House tonight amid his continued push for health care reform legislation.

So what does health care reform mean for you? More than 160 million Americans get their health insurance through work. 14 million Americans buy health insurance on their own. And 49 million Americans have no coverage at all.

How will the health care bills moving through Congress affect these groups? Will it lower premiums? CNNMoney.com has the breakdown.

Stocks churn on Wall Street

Stocks bounced in and out of positive territory this morning as investors took a breather from the recent run-up to sort through earnings reports from the likes of Morgan Stanley, Wells Fargo and Apple.

Stocks rallied Tuesday, with the Dow ending at its highest close in six months as better-than-expected quarterly results overshadowed Fed Chairman Ben Bernanke's testimony on the economy. Bernanke is back on the Hill today, testifying before the Senate Banking Committee.

Gas prices reverse course

After 30 consecutive days of declines, gas prices climbed 3- tenths of a cent overnight to $2.461.

Still, the average price of a gallon of gas is down $1.65 or 40.2 percent from the record high price of $4.114 that AAA reported on July 17, 2008.

The highest gas prices are in Hawaii ($3.169). The cheapest are in Missouri and South Carolina ($2.226 in both states).

Pay hikes on the way

Pay raises are expected to rebound next year after being severely stunted by the recession, according to a new survey.

Companies are planning median merit increases of 3% for 2010, according to human resources consulting firm Watson Wyatt, which polled 235 large U.S. employers in May.

While that's below the 3.5% raise workers received in both 2008 and 2007, it would be an improvement over the 2% salary increase employers plan to give out this year.

Follow the money… on Twitter: @AndrewTorganCNN

Andrew Torgan
CNN Financial News Producer

It’s an extremely busy day on Capitol Hill.

Fed Chairman Ben Bernanke is testifying before the House Financial Services Committee this morning, delivering his semi-annual report on the economy.

Bernanke told lawmakers that the economy has started to show signs of stabilization, although he cautioned that improvement is uncertain and likely to be gradual going forward. He also said the unemployment rate would be higher than preferred levels until at least 2012, but added that steps taken by the Fed to pump money into the economy have started to pay benefits.

Some lawmakers are questioning those steps taken by Bernanke and Co. however, arguing the economy has not yet taken a turn for the better for most Americans.

And down the hall, the oversight czar tracking the $700 billion bailout told lawmakers that he's concerned officials are not doing enough to prevent tax dollars from being wasted or pilfered.

Neil Barofsky, the special inspector general overseeing the Troubled Asset Relief Program who is testifying before a House Oversight panel, says officials should keep better tabs on how banks are spending taxpayer dollars.

Barofsky wants the Treasury Dept. to force bailout recipients to keep track of how exactly they are spending TARP funds. He also wants officials to erect a "firewall" to prevent private investment managers - the kind hired to manage and invest taxpayer dollars - from taking advantage of insider knowledge.

Caterpillar sees 'signs of stabilization'

Caterpillar, the world's largest maker of construction and mining equipment, posted stronger-than-expected quarterly earnings this morning and raised its full-year outlook, citing what it said were growing signs of stability in the world's credit markets and economies.

Caterpillar says various fiscal stimulus programs around the globe, especially in China, are beginning to pay off and commodity prices were holding in a range that was positive for investment.

The fact that Cat raised its outlook means it thinks its business will begin to pick up when the world’s builders start building again.

Gas prices down for 30 straight days

Gas prices dropped 7- tenths of a cent overnight to $2.458 - the 30th straight day of declines.

In the last 30 days, the average price has decreased 23.5 cents, or 8.73%. The average price of a gallon of gas is also down $1.66, or 40.25%, from the record high price of $4.114 that AAA reported on July 17, 2008.

The highest gas prices are in Hawaii ($3.187). The cheapest are in Missouri ($2.207).

Housing starts increased by 3.6% in June.

Gene Bloch
Managing Editor, CNN New York

All is certainly not well with the economy, but rising home construction and still-falling gas prices are welcome news for a Summer Friday.

Groundbreaking on new homes – the figure known as housing starts – surged 3.6% in June to an annual rate of 582-thousand, led by a 14% increase in single-family home construction. The gain, which was much better than expected, was led by a 14-percent increase in single-family construction. Building permits also rose more than expected, indicating a brighter performance this month. While it’s too early to declare a recovery in housing under way, the news is good.

Happy anniversary, everyone. It was one year ago today that AAA reported gas prices at $4.114 a gallon for regular unleaded, a record high.

Since then, prices have plunged almost 40%, with the average price at $2.481. Gas prices have fallen more than 21 cents over the past 26 days.

But will they keep falling?

Troubled banking giants Citigroup and Bank of America both turned in better than expected quarterly results this morning, Citigroup’s net profit of $4.3 billion is owed primarily to a $6.7 billion gain on the company’s sale of Smith Barney (to Morgan Stanley) and B of A posted a $3.2 profit. The news comes after strong results this week from JP Morgan and Goldman Sachs, which have paid back the billions they received from the government under the TARP bailout.

One company NOT receiving additional government assistance is CIT Group, a major source of funding for a million small and medium sized businesses. If CIT were to file for bankruptcy, many of those businesses would suffer or have to shut down. CIT issued a statement late Thursday saying it’s in discussions with lenders to secure financing. We’ll be keeping a close eye on this.

And today’s angle on Money’s Best Places to live is a fun one: if you’re looking for a mate, Money takes a look at which towns and cities where rich single professionals are most abundant. Hermosa Beach, CA and Arlington, VA top the list.

Other things we're covering on CNNMoney today:

Out of work, out of benefits, out of luck. By August, 65% of all filers for unemployment insurance will have run out of their standard 26 weeks of benefits. And that's just the beginning: A crisis looms.

Help! My jobless benefits ran out. These people have been unemployed so long that they exhausted their unemployment benefits. How do they cope without a weekly check?

Map: How many weeks of unemployment insurance does your state offer?

Buy a foreclosure: 5 great deals

Obama turns up heat on mortgage servicers. Administration will tell financial institutions they must do more to help borrowers. 'We think we can do even more,' official says.

Gas prices dropped 1.3-cents overnight to $2.504

Andrew Torgan
CNN Financial News Producer

Consumer prices shot up in June by the largest amount in 11 months, reflecting the biggest jump in gasoline prices in nearly five years.

The Consumer Price Index, the Labor Department's key measure of inflation, rose 0.7% in June due mainly to higher energy and automobile prices. But the core CPI, which excludes food and energy prices, rose a modest 0.2%.

And on a year-over-year basis, prices have fallen 1.4%. That’s the largest drop since 1950, when Harry Truman was president.

Intel sparks rally on Wall Street

Stocks surged out of the starting gate this morning and never looked back after chipmaker Intel said business is picking up fast - adding to bets that the economy is starting to stabilize.

The Dow was up more than 170 points by lunchtime and the Nasdaq was higher by nearly 3% - driven higher by shares of Intel.

The world’s biggest chipmaker reported profit and revenue late Tuesday that dipped from a year ago, but surpassed forecasts. Intel also forecast better revenue growth in the third and fourth quarters, thanks to improved demand for personal computers.

Gas prices down nearly 40% from record high

Gas prices dropped 1.3-cents overnight to $2.504 - the 24th straight day of declines.

In the last 24 days, the average price has decreased 18.9 cents, or 7.01%. The average price of a gallon of gas is also down $1.61, or 39.1%, from the record high price of $4.114 that AAA reported on July 17, 2008.

The highest gas prices are in Hawaii ($3.256). The cheapest are in Missouri ($2.258).

The high price of smoking

Finally, more proof that smoking is hazardous to your health - or at least your bank account.

A New Hampshire man says he swiped his debit card at a gas station to buy a pack of cigarettes and was charged more $23 quadrillion dollars. Josh Muszynski checked his account online a few hours later and saw the 17-digit number - a stunning $23,148,855,308,184,500.

Muszynski told the Associated Press he spent two hours on the phone with Bank of America trying to sort out the string of numbers and the $15 overdraft fee.

The bank corrected the error the next day.

Andrew Torgan
CNN Financial News Producer

Washington may be focused on the Sotomayor confirmation hearings, but Wall Street is prepping for earnings from the nation’s biggest banks.

Among the financial institutions reporting this week are Goldman Sachs, JPMorgan, Bank of America and Citigroup. Other big names like Johnson & Johnson, IBM, General Electric and Intel also report this week.

Traders are buzzing about Goldman Sachs in particular, which recently paid back its share of government bailout money. Analysts are predicting the bank earned a profit of more than $2 billion in the March-June period, due to its trading prowess across world markets.

If they’re right, Goldman’s rivals will once again be left to wonder exactly how the bank, long the envy of Wall Street, could have rebounded so dramatically only months after the nation’s financial industry was shaken to its core.

Oil prices dip below $59/barrel

Oil prices briefly dropped below $59 per barrel today, dipping to a 7-week low below before rebounding on concerns about the state of the global economy.

Crude dropped 11% last week - the biggest weekly decline since late January - as traders worried the possibility of another dip in economic activity before the onset of recovery, which could delay a rebound in oil demand.

Gas down nearly 40% from last year’s record high

Gas prices dropped 8-tenths of a cent overnight to $2.529 - the 22nd straight day of declines.

In the last 22 days, the average price has decreased 16.4 cents, or 6.08 percent. The average price of a gallon of gas is also down $1.585, or 38.5 percent, from the record high price of $4.114 that AAA reported on July 17, 2008.

The highest gas prices are in Hawaii ($3.270). The cheapest are in Missouri ($2.281).

Money: America's Best Places to Live

Yes, strong local economies do still exist. These small towns as ranked by Money Magazine have them - plus great schools, affordable homes, low crime, and more. See the Top 100 - including detailed city profiles, homes for sale, and job openings.

New claims for jobless benefits fell 52,000 last week.

Andrew Torgan
CNN Financial News Producer

The number of Americans filing new claims for unemployment benefits last week fell to lowest level since early January, while continuing claims jumped to a record-high.

New claims for jobless benefits tumbled by 52,000 to 565,000 - well below analysts' expectations.

However, analysts said last week's drop was distorted by a change in the pattern of seasonal layoffs in the automotive industry. Initial claims typically spike in July as automakers idle certain manufacturing plants, and the Labor Department adjusts its data for such seasonal factors.

Meanwhile, the number of people continuing to receive unemployment insurance for one week or more unexpectedly jumped by 159,000 to 6.88 million, an indication that the labor market remains weak.

Govt. watchdog: Stimulus spending short-sighted

Fiscally-stressed states trying to survive one of the worst economic downturns since the Great Depression are using their stimulus dollars to satisfy immediate needs rather than undertake longer-term reforms, according to a government report released Wednesday.

For example, states are spending education funds to prevent layoffs and maintain programs, a Government Accountability Office report found.

State and school district officials say they don't have the money to undertake projects such as building new schools and expanding early-childhood education.

Similarly, states are using nearly half their infrastructure funds for pavement improvements, which can be implemented quickly and don't require environmental clearances and in-depth design work.

Wall Street wavers

Stocks on Wall Street opened higher, boosted by Alcoa's smaller-than-expected quarterly loss that the aluminum giant posted after Wednesday’s closing bell.

But the blue chips soon began to struggle on weakness in biotechs and financials.

Stocks fought off losses to end mostly higher Wednesday, but the trend has remained downward since mid-June as investors have stepped back after a 40% rally off the March 9 lows.

Nine firms to run ‘toxic asset’ program

The government on Wednesday tapped nine financial firms to manage a scaled-down program aimed at helping the nation's banks shed their “toxic assets” and said it would invest up to $30 billion to get it started.

Among those selected to serve as asset managers of the so-called “Public-Private Investment Program” were BlackRock, AllianceBernstein, Oaktree Capital Management, Invesco, Angelo, Gordon & Co., Marathon Asset Management, RLJ Western Asset Management, The TCW Group and Wellington Management Company.

The firms, selected from a pool of more than 100 applicants, will have 12 weeks to raise $500 million of capital each from private investors willing to invest in toxic securities held on banks' books. Those investments will be matched by the Treasury Department and supplemented with debt financing from the agency.

Consumers trim borrowing

Consumer debt fell in May for the fourth straight month, a government report said Wednesday.

The reduced borrowing comes as job losses and pay cuts have limited consumer spending power. At the same time, banks have tightened lending standards due to growing concerns about default risks in a battered economy.

Total consumer borrowing fell by a seasonally-adjusted $3.22 billion, or a 1.5% annual rate, to $2.52 trillion in May, according to the Federal Reserve. The report measures how much debt consumers have outstanding.

Gas prices down for 18th straight day

Gas prices dropped 1.3 cents overnight to $2.580 - the 18th straight day of declines.

In the last 18 days, the average price has decreased 11.3 cents, or 4.1 percent. The average price of a gallon of gas is also down $1.534, or 37.2 percent, from the record high price of $4.114 that AAA reported on July 17, 2008.

The highest gas prices are in Hawaii ($3.299). The cheapest are in Missouri ($2.349).

Can't pay your doctor? Charge it

Finally, as medical bills pile up, more Americans are paying their doctors with plastic.

CNNMoney.com has the story of what consumer advocates warn is a dangerous trend, but industry watchers see a multi-billion dollar opportunity for lenders to offer specialized “medical” credit cards.

Americans spend an estimated $294 billion on annual out-of-pocket medical costs annually, to cover everything from doctor's office co-payments to surgeries and prescription medications.

About 25% of that - around $74 billion - is already being charged to regular standard credit cards. And one consulting firm expects that $150 billion worth of health care expenses will go on credit cards by 2015.

Andrew Torgan
CNN Financial News Producer

We got a wave of jobs data this morning ahead of the long holiday weekend – and most of it troubling as the labor market took a step backwards last month.

Employers trimmed 467,000 jobs from their payrolls in June, compared with a revised loss of 322,000 jobs in May. This was the first time in four months that the number of jobs lost rose from the prior month.

The unemployment rate, meanwhile, rose for the ninth straight month - climbing to 9.5% from 9.4% and hitting another 26-year high. But that was actually better than expectations.

However, the report contained even more discouraging data.

The average hourly work week fell to 33 hours in May, the lowest it's been since the Labor Department started keeping records in 1964. That translates into smaller paychecks for workers.

And the number of people out of work for six months or more climbed to nearly 4.4 million - a record high.

The only piece of good news on the labor market came from a separate report showing the tally of newly laid-off workers filing for unemployment insurance dropped last week, a sign job cuts are easing.

Initial claims for jobless benefits fell by 16,000 last week to a seasonally adjusted 614,000.

And the number of Americans continuing to receive unemployment insurance for one week or more dropped by 53,000 to 6.7 million, defying analysts' expectations of a small rise.

Optimism about the economy stalls

A new national poll indicates that nearly half of all Americans think the economy has stabilized, but only one in eight believes that a recovery has started.

Four in 10 questioned in the CNN/Opinion Research Corp. survey released today think the country is still in an economic downturn.

"Although polls in recent months have shown some signs of growing optimism, that appears to have stalled," said CNN Polling Director Keating Holland. "In January, 50% said the economy was in very poor shape; that figure dropped to 37% in April, but now it has risen slightly, to 41%."

"The prevailing view? We're in a stall," said CNN Senior Political Analyst Bill Schneider.

The poll does suggest that when it comes to an economic recovery, Americans agree with President Barack Obama. Discussing the economy last week at a news conference at the White House, Obama said, "We're still not at actual recovery yet. So I anticipate that this is going to be a difficult, difficult year."

Gas prices keep falling ahead of holiday

Gas prices dropped 1-tenth of a cent overnight to $2.629. That’s the 11th straight day of declines.

In the last 11 days the average price has decreased 6.4 cents, or 2.3 percent. The average price of a gallon of gas is also down $1.485, or 36 percent, from the record high price of $4.114 that AAA reported on July 17, 2008.

The highest gas prices are in Hawaii ($3.202). The cheapest are in Missouri ($2.421).

Manhattan home prices plunge

The housing bust has finally clobbered super-pricey Manhattan home prices.

Reports released Thursday by four major New York brokers show that prices cratered during the three months that ended June 30.

Prices fell between 13% and 19% compared with the same quarter last year. The brokers found median prices that ranged from $795,000 to $849,000.

The decline shows a marked turn from the first quarter of 2009, when the year-over-year change in median home prices ranged from a loss of 2% to a gain of 6%.

Another change in the recent period: More people are buying.

The number of sales picked up by more than 28% in the second quarter, due to what the CEO of one real estate brokerage firm called “value-based shopping” by buyers.

Of course, in Manhattan "value" means studio prices that go for a median of $400,000 and one-bedrooms that fetch $650,000.

Andrew Torgan
CNN Financial News Producer

Fed Chairman Ben Bernanke today denied accusations that he pressured Bank of America to follow through on its controversial purchase of Merrill Lynch or risk having top management removed.

Testifying on Capitol Hill, Bernanke countered charges made recently by BofA chief Ken Lewis, who maintained that Bernanke threatened him with his job when his company considered pulling out of the deal late last year.

“I did not tell Bank of America's management that the Federal Reserve would take action against the board or management," Bernanke said in prepared remarks.

The Fed chief also rejected charges by Lewis that he asked former Treasury Secretary Henry Paulson to act on his behalf, a charge made by Lewis earlier this year that came to light during a related investigation on Merrill Lynch bonuses.

Jobless claims rise is setback for recovery

The number of Americans filing for initial unemployment insurance rose unexpectedly last week to the highest level in more than a month.

Initial jobless claims rose by 15,000 to 627,000 in the week ended June 20, up from a revised 612,000 the previous week.

And the number of people continuing to receive unemployment insurance for one week or more rose to 6,738,000, an increase of 29,000 from the preceding week's revised level of 6,709,000 and slightly above estimates.

Economy shrinks

The U.S. economy shrank at an annual pace of 5.5% in the first quarter, a slower pace of decline than was previously reported but still the second largest quarterly drop in 27 years.

That marks the third quarter in a row that the economy contracted.

But 5.5% is still an upgrade to the two previous reading on GDP - the broadest measure of the nation's economic activity. The government’s initial read was that GDP fell at an annual rate of 6.1% in the first quarter. Then in its first revision, the government lowered its estimate to 5.7%.  5.5% is the final revision.

Gas prices drop

Gas prices dropped 9-tenths of a cent overnight to $2.67. That’s the fourth straight day of declines.

The average price of a gallon of gas is down $1.447 or 345.1% from the record high price of $4.114 that AAA reported on July 17, 2008.

The highest gas prices are in Hawaii ($3.078) and California ($3.018). The cheapest gas prices are in Missouri ($2.474).

'Cash for Clunkers' mostly a clunker

If you think the new "Cash for Clunkers" law is going to help you buy a new car, you're probably wrong.

As it's written, the law will benefit few car shoppers and those who might actually benefit from it probably shouldn't be buying a new car to begin with.

CNNMoney.com explains that the government refund vouchers for $3,500 or $4,500 are in replacement of - not in addition to - the ordinary trade-in value of the vehicle, which in many instances will be worth more than the voucher.

Bailed out financial giant Citigroup plans to raise the base salaries of its employees.

Andrew Torgan
CNN Financial News Producer

The Federal Reserve this afternoon held its key interest rate steady at near zero, and said in a statement that although the economy remains weak, there are signs of a recovery.

Policymakers said that the pace of the nation's economic decline is slowing and that household spending is showing signs of stabilizing.

The central bank also said conditions in financial markets have generally improved in recent months, and that while businesses continue to cut back staff and spending, their inventories are coming into line with demand.

Durable goods orders rise

Orders to factories for big-ticket manufactured goods rose sharply for a second straight month in May, and a key indicator of business investment surged by the largest amount in nearly five years.

The Commerce Department said this morning that durable goods orders rose 1.8% last month, far better than the 0.6 percent decline that economists expected.

Orders for non-defense capital goods, a key proxy for business investment plans, jumped nearly 4.8%, the biggest increase since September 2004.

New homes sales dip

Sales of newly constructed homes fell unexpectedly in May and were down almost a third from last-year's levels.

New home sales ticked down 0.6% last month to a seasonally-adjusted annual rate of 342,000, the Commerce Department reported this morning.

Analysts expected the rate of new home sales to rise to 360,000. And from the same month one year ago, sales were down 32.8%.

Citigroup raising salaries

Bailed out financial giant Citigroup says it’s going to raise the base salaries of its employees, although it is not planning to increase their total compensation.

"Retaining and attracting the best talent is very important to the success of Citi and all its stakeholders," Citigroup said in a statement.

The company insisted that total compensation, however, will remain constant - indicating that year-end bonuses and other special payments will be cut when pay is raised.

Gas prices dropping

Gas prices decreased by 7-tenths of a cent overnight to $2.68. That’s the third straight day of declines.

The average price of a gallon of gas is down $1.438 or 34.9% from the record high price of $4.114 that AAA reported on July 17, 2008.

The highest gas prices are in Hawaii ($3.081) and California ($3.022). The cheapest gas prices are in Missouri ($2.487).

Holiday travel dropping

Travel in the U.S. over the Fourth of July holiday weekend will drop 1.9% this year compared to 2008, a casualty of higher fuel prices and economic worries, AAA projected today.

Approximately 37.1 million Americans will travel 50 miles or more away from home during the long weekend, typically the busiest time for auto travel in the U.S., down from 37.8 million last year.

Ford, Nissan and electric car start-up Tesla Motors will be the first companies to benefit from a new government program geared toward helping automakers produce more fuel-efficient vehicles.

Andrew Torgan
CNN Financial News Producer

More government money is flowing into the auto industry.

It’s all part of a $25 billion loan program that Congress created to help automakers retool their factories to build cars that are at least 25% more fuel-efficient than vehicles made in 2005.

Ford, Nissan and electric car start-up Tesla Motors will be the first beneficiaries of that program. Ford is getting nearly $5.9 billion. Nissan will receive $1.6 billion and Tesla will receive $465 million. More than 100 auto and auto parts makers have applied to the program.

Ford says it will use some of the money to refit some of its truck and SUV plants for small-car production in North America. The company also has plans to build new flex-fuel vehicles and a variety of electric models.

Home sales rise, but prices plummet

Sales of previously-owned homes rose 2.4% last month as increasingly affordable home prices and a first-time tax credit attracted hesitant buyers.

And distressed property sales have pushed prices lower, year over year. The median price for an existing home last month was $173,000, down nearly 17% from $207,900 in May 2008.

$6 billion available to buy foreclosed homes

So with home prices at their most affordable in many years, that’s opened up homeownership to many who had been locked out during the housing boom. And now, the federal government is launching a plan to hook up buyers of repossessed properties with very attractive terms.

The feds made nearly $6 billion available for the Neighborhood Stabilization Program, which intends to combat blight by reducing the number of foreclosed homes on the market.

The money, which has only started to flow during the past few weeks despite much of it being authorized last summer, will go to state and local housing authorities and non-profit organizations involved in providing housing for middle- and low-income families.

Gas price shift into reverse

Gas prices decreased by 7-tenths of a cent overnight to $2.68. That’s the second straight day of declines.

The average price of a gallon of gas is down $1.431 or 34.7% from the record high price of $4.114 that AAA reported on July 17, 2008.

The highest gas prices are in Hawaii ($3.078) and California ($3.025). The cheapest gas prices are in Missouri ($2.500).

Survey sees thaw in hiring freezes

The job market, still the worst in decades, may become a tad less chilly in the months ahead as a majority of employers now think the economy is inching towards a recovery.

A survey released Monday by consulting firm Watson Wyatt, found that 62% of employers are planning to reverse hiring freezes over the next 12 months. It also showed that 69% of companies in the survey plan to eliminate salary freezes.

Mars, Venus and investments

A new study from Fidelity Investments found that a majority of couples disagree about a major component of their retirement planning, such as the age at which they plan to retire, whether they'll work in retirement or where they'll live after they retire.

Among the key findings:

-Less than half of couples make decisions jointly regarding the day-to-day financial decisions of the household such as budgeting and bill payment.

-Only 38% of couples jointly discuss investment decisions for retirement savings.

-And 60% don't agree on their respective retirement ages.

The one area where couples generally agree is that the biggest concern in retirement is health care expenses.

Apple reported it sold over 1 million new iPhones after the release of its latest version this weekend.

Andrew Torgan
CNN Financial News Producer

After rising nearly 32% since April 29th, gas finally decreased by 3-tenths of a cent overnight to $2.69. That puts an end to 54 straight days of increases.

The average price of a gallon of gas is down $1.424 or 34.6% from the record high price of $4.114 that AAA reported on July 17, 2008.

The highest gas prices are in Hawaii ($3.057) and California ($3.027). The cheapest gas prices are in South Carolina ($2.506).

One analyst says that Father’s Day represented the highest prices we’ll pay for the next few months – adding that gas should decrease between 5 to 15 cents in the upcoming weeks.

Oil prices tumble

Oil prices dropped almost 4% to below $67 a barrel today after European stocks lost ground and the U.S. dollar strengthened.

But attacks by militants on three oil installations belonging to Royal Dutch Shell in Nigeria over the weekend and fears that civil unrest in Iran could hamper output are keeping oil traders on their toes.

The bulk of the oil that leaves the Middle East travels through the Strait of Hormuz which at its narrowest point is about 21 miles wide, effectively giving Iran control over the oil tankers that carry crude through the Strait to the rest of the world.

Crude oil has more than doubled in price since mid-December, when it reached as low as $33.87 a barrel.

Stocks extend losses

Stocks on Wall Street opened sharply lower after the World Bank said a global recovery was “unusually uncertain” and cut growth forecasts for most countries.

No economic reports are due today. However, readings on housing, consumer spending, the labor market and durable goods orders are on tap later this week.

Investors are also gearing up for a two-day meeting of the Federal Reserve that begins Tuesday. No change in the central bank’s target for short-term interest rates is expected, but investors will be looking for hints on the Fed's views of inflation and the bond market.

Apple in the spotlight

A big weekend for Apple… First we got a report that Apple CEO Steve Jobs, who has been on medical leave since January to treat a mysterious medical condition, received a liver transplant in Tennessee about two months ago

And today the company says it sold more than 1 million of the new iPhone 3GS since they went on sale Friday.

Companies cutting 401(k) contributions

One quarter of employers have eliminated matching their workers’ 401(k) contributions since September to save money during the economy's downturn.

And one quarter of employers also have instituted limited enrollment rather than open the savings plans to all employees, according to a study released today that was conducted for Charles Schwab Corp. by CFO Research Services.

Mamma just took my Kodachrome away

Eastman Kodak says it will discontinue its iconic Kodachrome color film this year due to tumbling sales as photographers embrace newer Kodak films or digital imaging technology.

Kodak introduced Kodachrome in 1935 and it became the first commercially-successful color film. But sales are just a fraction of 1% of the company's still-picture film revenue.

 “Kodachrome” is also the title of a 1973 Paul Simon song.

Andrew Torgan
CNN Financial News Producer

Employers in the U.S. will see health care costs rise 9% in 2010, and most expect to pass on that increase to their workers – meaning higher deductibles, premiums and co-payments.

According to a report from consulting firm PricewaterhouseCoopers, more workers are likely to utilize their health insurance coverage as a result because they fear they will lose their jobs, and more uninsured and underinsured people will turn to Medicaid for coverage.

There are some 50 million Americans in this country that are uninsured.

Unemployment rolls decrease somewhat

Whether you're an optimist or a pessimist, there's something for you in today's jobs report. The total number of Americans on the unemployment insurance rolls has dropped for the first time since early January, although first-time claims for jobless benefits rose slightly.

The Labor Dept. says the number of people claiming benefits for one week or more fell by 148,000 to 6,687,000 million, the largest drop in more than seven years and a sign that layoffs are easing.

Still, initial claims for unemployment benefits rose by 3,000 to 608,000 last week, topping analysts' expectations.

On a state-by-state basis, Arkansas was the only state to report that initial claims decreased by more than 1,000. Pennsylvania reported the most new claims at 6,891.

Chrysler set to reopen most plants

Many Chrysler employees will soon be back on the back to work.

The automaker announced plans Wednesday to reopen 7 of its 11 assembly lines later this month for the first time since the day after the company filed for bankruptcy in April.

Chrysler said two plants in Michigan, one in St. Louis and one in Toledo will reopen during the week of June 29. Two factories in Ontario, Canada will also reopen as well as one in Mexico.

The 7 plants make a variety of Chrysler vehicles, including the Dodge Grand Caravan, Jeep Wrangler and the Chrysler Town & Country.

In addition, the company is reopening several factories that make powertrains, axles and other components used by the assembly plants. Chrysler's parts distribution centers, which supply parts to both plants and dealerships, will also reopen.

Auto startup to open plant in Louisiana

A new car company is planning to open its first factory in what used be a headlight plant in a small town in northern Louisiana.

Louisiana economic development officials are enthusiastic about the endeavor which they say will create thousands of jobs. But for now, executives with California-based V-Vehicles, which has backing from billionaire T. Boone Pickens and the venture capital firm Kleiner Perkins Caufield & Byers, are not saying exactly what type of vehicle the company plans to build.

Pickens has been active in promoting natural gas for use in automobiles, but it isn't clear what form of energy will fuel these cars.

No letup in gas prices

Gas prices rose 6-tenths of a cent overnight to $2.685 - the 51st consecutive increase.

In the last 51 days, the average price of gas has increased 63.7 cents or 31.1%. The average price of a gallon of gas is down $1.44 or 35.1% from the record high price of $4.114 that AAA reported on July 17, 2008.

The highest gas prices are in Hawaii ($3.041) and California ($3.025). The cheapest gas prices are in South Carolina ($2.503).

Andrew Torgan
CNN Financial News Producer

Seven weeks after going bankrupt, Chrysler will soon be making cars again - and the first models off the line could cost more than $90,000.

The newly-formed Chrysler Group announced yesterday that it’s restarting one factory - the Conner Avenue Assembly Plant in Detroit - which employs 115 people.

That’s the plant that makes the Dodge Viper sports car. The Viper has a 600 horsepower V-10 engine and a manufacturer’s suggested retail price tag that starts at $91,220. Only 25,000 Vipers have been sold since the car debuted in 1992.

One interesting note: The old Chrysler sought out Italy’s Fiat as a partner for its fuel-efficient technology. But the first car expected off the line from the new Chrysler – the Viper – gets an estimated 13 mpg in city driving.

GM finds buyer for Saab

 Bankrupt automaker General Motors has reached a preliminary agreement to sell its money-losing Saab unit to Swedish sportscar maker Koenigsegg.

The deal would see Saab, which was put up for sale earlier this year, emerge from two decades under the umbrella of GM.

The sale, which is expected to close by the end of the third quarter of this year, includes an expected $600 million funding commitment from the European Investment Bank guaranteed by the Swedish government.

 Koenigsegg, which employs a mere 45 workers, is known for producing only a handful of exotic sports cars every year that typically cost more than $1 million a piece.

Saab sold fewer than 94,000 cars last year, down from about 125,000 in 2007.

New home construction surges

The nation's builders boosted their production sharply in May.

Housing starts – a measure of new home and apartment construction - jumped more than 17% last month after hitting a record low in April. That's the biggest jump in 3 months and is due mainly to a 60% spike in construction of multi-family units.

Meanwhile, building permits - a sign of future construction activity - rose by a better-than-expected 4%.

Inflation in check

Separately, a new reading on wholesale prices shows inflation is in check.

The Producer Price Index  rose just 0.2% in May. That’s much less than expected. And even though gas prices have been rising, that was offset by a drop in food costs.

Over the past year, wholesale prices have fallen by 5% - the biggest drop in nearly 60 years.

Tomorrow, we'll see how this is affecting prices at the consumer level when we get the Consumer Price Index for May.

Gas tops $3 per gallon in California and Hawaii

 Gas prices rose 5-tenths of a cent overnight to $2.674 - the 49th consecutive increase.

In the last 49 days the average price of gas has increased 62.6cents or 30.5%.

The average price of a gallon of gas is down $1.44 or 35.1% from the record high price of $4.114 that AAA reported on July 17, 2008.

 The highest gas prices are in California ($3.014). The cheapest gas prices are in South Carolina ($2.477)

Andrew Torgan
CNN Financial News Producer

President Barack Obama this week will propose the most sweeping reorganization of financial-market supervision since the 1930s, a revamp that would touch nearly every corner of banking from how mortgages are underwritten to the way exotic financial instruments are traded.

In an Op-Ed piece published in today's Washington Post, Treasury Secretary Timothy Geithner and the Director of the National Economic Council, Lawrence Summers, said the proposal would grant the Federal Reserve increased power in the oversight and management of the largest financial companies in the market.

It would also create an agency like the Federal Deposit Insurance Corp., to oversee consumer-oriented financial products.

The President is expected to officially unveil the specific details of the proposal on Wednesday.

Oil falls below $70 per barrel

Crude oil prices sank more than $2 to below $70 per barrel today as the U.S. dollar rose, stocks fell and a slew of global events put downward pressure on prices.

Oil prices had been on a tear recently. On Thursday, crude settled at $72.68 - the highest since Oct. 20 - before giving back some gains Friday.

Stocks turn lower

Stocks on Wall Street tumbled out of the gate this morning as investors dumped a variety of shares, influenced by protests in Iran regarding the disputed presidential election and a slump in commodity prices and stocks.

Through the end of last week, Wall Street had been on a three-month run up. The Dow has risen in 12 of the past 14 weeks and was in positive territory for the year for the first time since January. And the S&P 500 is up 40% from its 12-year low in March.

Gas nearing $2.70

Gas prices rose 6-tenths of a cent overnight to $2.67. This is the 48th consecutive increase.

Since April 29th, the average price of gas has increased 62.1cents or 30.3%.

The average price of a gallon of gas is down $1.44 or 35.1% from the record high price of $4.114 that AAA reported on July 17, 2008.

The highest gas prices are in California ($3.006). The cheapest gas prices are in South Carolina ($2.463)

The redesigned 2011 Jeep Grand Cherokee SUV will be the first new product produced by the joint Chrysler – Fiat.

Andrew Torgan
CNN Financial News Producer

Chrysler and Italian automaker Fiat today officially signed a strategic alliance brokered by the U.S. Government - one day after the Supreme Court cleared the path for the deal.

The new company formed by the deal - called Chrysler Group – is mostly owned by the United Auto Workers union (a 55% stake) and will give minority stakes to the U.S. and Canadian governments.

Fiat will initially take a 20% stake in the company, which can go up to 35% if it reaches certain fuel-efficiency goals.

The Supreme Court delayed the sale Monday, pending review of the merits of a case brought by the Indiana State Pension funds, which argued that they and other lenders deserved better treatment by the bankruptcy court.

Chrysler's asset sale was approved by a bankruptcy judge on May 31, just hours before the bankruptcy filing of General Motors.

Bankruptcy judge OKs Chrysler dealer cuts

And a federal bankruptcy judge on Tuesday approved Chrysler's plan to terminate 789 dealer franchises, calling it an "appropriate and necessary" step by the company.

Effective immediately, the dealers are no longer authorized Chrysler, Dodge and Jeep dealers, Judge Arthur Gonzalez said in his order issued Tuesday afternoon.

The decision to cut the dealerships "constitutes an exercise of sound business judgment" by Chrysler, which filed for bankruptcy protection in April, Gonzalez wrote.

House approves ‘cash-for-clunkers’

Meanwhile, the House of Representatives on Tuesday passed a $4 billion plan to subsidize new cars sales for consumers who scrap old ones - known as the "cash for clunkers" program.

 The measure would give consumers vouchers worth as much as $4,500 to ditch gas guzzlers that get 18 miles per gallon or fewer and buy new cars that are more fuel-efficient. The legislation now goes to the Senate. President Obama has said he supports such a measure.

White House to propose new pay legislation

The Obama administration moved forward Wednesday on reforming runaway corporate pay practices, proposing new legislation aimed at giving shareholders a greater voice on executive pay and appointing a new so-called “pay czar.”

The White House detailed it’s proposal today that would, among other things, ultimately require non-binding annual “say-on-pay” shareholder votes for all public companies, according to an administration official.

The two-part legislation, which would be carried out by broadening the powers of the Securities and Exchange Commission, would also attempt to create a firewall between those board members responsible for setting executive pay packages and senior management.

Crude tops $71 per barrel

Crude oil prices climbed above $71 per barrel in electronic trading this morning on the back of a global stock market rally.

 On Tuesday, crude gained more than 2.8% to end above $70 for the first time in 7 months. Since the end of 2008, oil has doubled in price.

Gas prices keep climbing

 Gasoline prices rose 5-tenths of a cent overnight to $2.627 - the 43^rd consecutive day of increases. The system that AAA uses to post gas prices suffered a glitch overnight Tuesday and incorrectly showed prices as unchanged.  

The average price of a gallon of gas is down $1.487, or 36.1 percent, from the record high price of $4.114 that AAA reported on July 17, 2008.

The highest gas prices are in California ($2.915) while the cheapest gas prices are in South Carolina ($2.403)

 Trade gap widens on weak exports

 U.S. trade gap widened to $29.2 billion in April as exports weakened again in a reflection of waning global demand.

The Commerce Department said total exports fell 2.3% to $121.1 billion, the lowest level for overseas sales since mid-2006. Exports have dropped in eight of the past nine months.

Imports declined in April for a ninth straight month but by a smaller amount than exports, down 1.4% to $150.3 billion. That was the lowest value for imports since September 2004, more evidence that the recession-hobbled U.S. economy was not generating as much demand as it once did.