A federal appeals court said Friday that President Obama over-stepped his authority with a series of recess appointments to the National Labor Relations Board. The case may wind up in the Supreme Court, and determine how far the president can go in appointing people whose nominations would be filibustered in the Senate. The result could affect the standing of other Obama appointees, such as the head of the president's new Consumer Financial Protection Bureau, Richard Cordray.

DAVOS, Switzerland - Is the euro crisis over? A leading U.S. economist says not by a long shot. Even as the head of the European Central Bank talked Friday of “positive contagion” in the markets and predicted an economic recovery for the recession-hit eurozone later this year, economist Barry Eichengreen warned that the debt crisis that has shaken Europe to its core could easily erupt again this year unless European leaders move faster to solve their problems. While European governments and markets have been breathing easier in recent months after years of turmoil, it’s no time for complacency, said Eichengreen, who has chronicled the Great Depression and explored the consequences of a breakup of the euro currency used by 17 nations. “Nothing has been resolved in the eurozone, where markets have swung from undue pessimism to undue optimism,” Eichengreen told The Associated Press in an interview at the World Economic Forum in Davos, Switzerland. “They said all the right things last year … and they’ve been backtracking ever since.” He warns that the crisis over too much debt burdening governments and banks in the 17-country currency group “is going to heat up again in 2013.” (MORE: U.K.’s Cameron Pledges Referendum on E.U. Membership) He urged eurozone leaders follow up on its proposals to steady its banking system and keep failed banks from adding to government debt through expensive bailouts. European leaders in Davos this week are seeking to reassure investors and corporate leaders that the continent is on the mend after its punishing debt crises. European Central Bank chief Mario Draghi on Friday forecast a recovery in the eurozone economy in the second half of the year, and spoke of “a new restored sense of relative tranquility” and “positive contagion on the financial markets.” But he acknowledged “we...

BofA's Moynihan Sees Growth Ahead as Banks Seek to Deploy Funds Bloomberg Bank of America Corp. Chief Executive Officer Brian T. Moynihan said "underlying fundamentals" of the economy are still improving and bankers have plenty of funds to lend. Banks have excess liquidity as money sits idle and borrowers hesitate, Moynihan ...

This is a breaking new story. Please check back on CNBC.com for updates to this article. Economists in a Reuters survey had forecast a total of 385,000 new home sales, up from 377,000 in November..

"Neutral." That is the one-word answer given by Yale University professor and noted housing and markets expert Robert J. Shiller when asked to describe the current state of the U.S. housing market. "It's going up in the short run. What it will do in the longer run is hard to say. Maybe it will go down," Mr. Shiller said in an interview on the sidelines of the World Economic Forum annual meeting in Davos, Switzerland. Housing is still a "somewhat risky investment," said Mr. Shiller.

Stocks opened in positive territory Friday, a day after the S&P 500 briefly crossed above the 1,500 level and logged its seventh-straight rally, boosted by a batch up upbeat earnings reports and ahead of a key housing report.

Was 2012 the Year the Housing Market Recovered? Daniel Carroll and Samuel Chapman 1/11/13     On many occasions during the past few years, housing market conditions have been cited as a key factor contributing to the slow recovery. For a typical household, the largest component of wealth is house value. As house prices fell [...]

Banks will repay the European Central Bank 137 billion euros in 3-year loans next week, opting to hand back the money early in a sign at least parts of the financial system are returning to health.

U.S. stock index futures signaled a slightly higher open on Wall Street on Friday, mirroring early gains in Europe after better-than-expected earnings from Microsoft and strong business sentiment numbers from Germany.