There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following:
- The Dow Jones Industrial Average opened the week at 7850 but the market was closed on Monday.
- On Tuesday, the Dow Jones Industrial Average plunged 298 points.
- On Wednesday, the Dow Jones Industrial Average rose 3 points.
- On Thursday, the Dow Jones Industrial Average dropped 90 points.
- On Friday, the Dow Jones Industrial Average lost 100 points and closed the week at 7366.
- President Obama signed the $789 billion stimulus bill passed by Congress.
- The news on jobs continues to deteriorate in February.
- Approximately 5,000,000 Americans are now receiving unemployment benefits. This is a record high. Equally disturbing is that new jobless claims are well-above 600,000.
- Delphi is shedding 775 jobs.
- Anglo American PLC, a huge mining company, announced that it would shed 19,000 jobs this year.
- According to Delta Airlines, 2,100 employees accepted its buyout offer.
- Trump Entertainment Resorts filed for bankruptcy protection as the drop in consumer spending has hit even casino revenues.
- General Motors’ Saab automotive unit has filed for bankruptcy.
- Federal regulators have now closed 14 banks this year. Experts estimate that as many as 100 banks will be closed by year-end.
- Smithfield Foods announced that it is closing six plants and eliminating 1,800 jobs.
- Airplane manufacturer Embaer announced that it will cut 20% of its workforce. Approximately 4,200 jobs are expected to be lost.
- Retailer Best Buy is laying off 250 employees at its corporate headquarters.
- Goodyear Tire & Rubber has announced that it will shed 5,000 jobs this year in addition to the 4,000 job cuts previously reported.
- Economic hard times are having significant adverse impacts on countries around the globe.
- Russia announced that industrial production in January was 16% lower than a year earlier.
- The Japanese economy shrank at the fastest rate in 35 years during the fourth quarter of 2008.
- In China, unemployment is a huge problem. According to USA Today, the number of unemployed Chinese could reach 26 million.
- James Bullard, president of the Federal Reserve Bank of St. Louis, feels that the country could be at risk of an extended period of deflation.
- Las Vegas, Detroit and Atlanta are the nation’s leaders in vacant rental units and single-family homes.
- Commercial real estate activity in the U.S. is at a twelve year low.
- The Federal Reserve issued a gloomy forecast for the U.S. economy. Among other things, the Fed projects increasing unemployment and a contraction in the economy.
- Standard & Poor’s Rating Services reported that the credit crunch may only be in its early stages
- The dismal economy has resulted in an ever-increasing number of charities and non-profit organizations to seek bankruptcy protection, liquidate or simply close their doors.
- The gloomy economy is even affecting the Girl Scouts. Orders for Girl Scout cookies are reportedly off as much as 19%.
- A Goldman Sachs’ analyst predicted that credit card defaults could reach as much as 10 to 11% of credit advances this year. Previously, the highest default rate was 7.53% of advances. Bank of America and American Express would be hit particularly hard if this prediction comes to pass.
- The Securities and Exchange Commission accused Allen Stafford of operating an $8 billion scam involving certificates of deposit and other “safe” securities.
- The SIPIC trustee handling the Bernie Madoff scandal has found no trace of Madoff buying securities for customers during the last thirteen years. The SEC’s alleged investigations into Madoff must not have looked very closely.
Page Perry’s Market Monitor is published periodically to give investors an overview of certain recent developments impacting the economy and/or the investment markets.