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 7776 and, on Monday, dropped 254 points.
- On Tuesday, the Dow Jones Industrial Average rose 86 points.
- On Wednesday, the Dow Jones Industrial Average jumped 153 points.
- On Thursday, the Dow Jones Industrial Average soared another 216 points.
- On Friday, the Dow Jones Industrial Average trended up 40 points and closed the week at 8018.
- Unemployment in the U.S. was reportedly up to 8.5%, the highest level since 1983.
- ADP Employer Services estimates that 742,000 jobs were lost in March.
- Nationwide Mutual Insurance Co. announced it was laying off 480 employees.
- Bombardier Aerospace is cutting 3,000 jobs as demand for its business planes drops.
- FedEx has laid off 1,000 managerial and salaried employees ? one-half of them in Memphis.
- The U.S, Postal Service is closing three processing centers and laying off 1,490 employees.
- Honda is offering voluntary buyouts to most of its 35,600 employees in North America. The company is also cutting pay and furloughing employees for up to 13 days.
- Ritz Camera announced that it was closing eighteen stores in Georgia.
- During the first three months of 2009, over 2,000,000 jobs have been lost. Moreover, since the recession began in 2007, over 5,100,000 jobs have been lost. At present, approximately 13,200,000 Americans are unemployed and another 9,000,000 are working part-time because they can’t find full-time jobs. America’s total workforce is estimated at approximately 154,000,000.
- J.P. Morgan predicts that global banks will write down an additional $17 billion during the remainder of 2009.
- Noted economist Paul Krugman believes that the United States government will eventually have to seize major banking institutions. He further predicted that the U.S. economy would not stabilize until late this year.
- The Sun-Times Media Group became the fifth U.S. newspaper publisher to file for bankruptcy. Sun-Times owns the Chicago Sun-Times and numerous suburban newspapers. Both of Chicago’s major newspapers are now in bankruptcy.
- The New York Times Co. is threatening to close The Boston Globe.
- The Federal Aviation Administration predicts a 9% drop in airline passengers this year.
- Housing prices in January were 19% lower than they were in January, 2008.
- Most restaurants across the country are experiencing hard times. As the economy sours, consumers are cutting spending and restaurants are being hit hard. Technomic, a national restaurant consultant, predicts that at least 20,000 restaurants will close during the next three years.
- Notwithstanding the poor economy, certain restaurant chains continue to do well. MacDonald’s, Taco Bell, Subway, Olive Garden and Red Lobster are among the chains reportedly doing well.
- Sales of second homes (vacation homes and investment homes) fell 22% in 2008.
- Soft drink sales in the U.S. fell 3% last year.
- IBM is reportedly on the verge of acquiring Sun Microsystems for almost $7 billion.
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.