Americans’ wealth grows

Americans’ wealth grows

WASHINGTON

Gradually but steadily, Americans are recovering their vast loss of wealth from the recession, thanks to larger stock portfolios.

Household net worth grew 2.2 percent in the July-September quarter, fueled by a rally on Wall Street that catapulted stock prices. And stocks have risen more since the new quarter began Oct. 1, further boosting wealth.

Those increases are lifting hopes for the economy, especially because Congress seems about to pass a package of tax cuts for most Americans. Both factors help: The stock gains make people feel wealthier. And the tax cuts put more spending money in their pockets.

Consumers’ confidence and access to cash are vital because their spending fuels about 70 percent of economic activity. Last quarter, Americans boosted their spending at the fastest annualized pace in nearly four years.

Stocks close mixed

NEW YORK

Stocks closed mixed Thursday as traders waited to see whether a tax compromise brokered by the White House and Republicans will pass the Democratic- controlled House.

House Democrats pledged Thursday to reject the tax deal as it is written. The compromise reached by President Barack Obama and Republican leaders would extend tax cuts at all income levels for two years. House Democrats want tax rates for the wealthiest Americans to revert to their previous levels.

“There is a tremendous amount of uncertainty about some major tax planning and estate planning issues,” said Eric Thorne, a vice president at Bryn Mawr Trust. “We think that the market will rally nicely once an agreement is passed one way or another.”

Natural-gas prices rise on demand

You can blame the rising price of natural gas on cold weather and Christmas lights. Natural gas has risen about 5 percent since the first of the month, as cold air and snow poured across much of the country. Forecasts say the cold will continue for at least another couple of weeks.

Since about half the homes in the country are heated with natural gas, prices rise as winter sets in. Natural gas hit a four-month high Wednesday, but it is still well below the yearly peak of about $6 per 1,000 cubic feet reached last January.

From wire reports