Try connecting a better antenna (see below) and see how your reception improves! If you'd like to buy a state-of-the-art FM tuner (at a very reasonable price) get the SONY XDR-F1HD (under $100).

Note: The "post type" antenna that pulls out of the radio is for FM and does nothing for AM reception. Built–in AM antennas are directional. Rotate the radio in a 360–degree circle and stop ...