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 9370 and, on Monday, dropped 32 points.
- On Tuesday, the Dow Jones Industrial Average fell 97 points.
- On Wednesday, the Dow Jones Industrial Average gained 120 points.
- On Thursday, the Dow Jones Industrial Average rose 37 points.
- On Friday, the Dow Jones Industrial Average fell 77 points and closed the week at 9321.
- Bank of America has announced that it may close as many as 10% of its branch banks.
- General Motors plans to lay off thousands of additional workers this year.
- During the second quarter of 2009, home sales were up 3.8% over the first quarter but still 2.9% lower than the second quarter of 2008.
- In July, foreclosure filings reached 360,149 properties, an increase of 7% over June.
- Zillow.com reports that approximately 23% of U.S. mortgage-holders owe more on their home than the home is worth.
- Deutsche Bank forecasts that, by the time the housing recession ends, almost half of all homeowners with mortgages will owe more on their mortgage than their home is worth. The bank also estimates that 28% of all homeowners with mortgages will owe more than 125% of their property’s value.
- Fannie Mae lost $14.8 billion last quarter and reports that it needs an additional $10.7 billion from the government.
- In May, the Case-Shiller Home Price 20 City index showed an increase of .5%, the first increase since July, 2006.
- Automobile sales increased to 997,824 vehicles in July, the highest volume this year.
- Many states have reported significant increases in the number of people who have applied to carry concealed weapons.
- Consumer prices have fallen more in the last 12 months than in any 12 month period in the past 60 years.
- Banking regulators closed five more banks this week. Banking regulators have now closed 77 banks this year and 102 banks since the beginning of 2008.
- Retailers continue to struggle in the current economic enviroment. Retail sales in July were 8.3% lower than they were in July, 2008. Reports indicate that virtually every retail sector is feeling the pain.
- The U.S. Department of Labor reported a 5.5% increase in productivity in the second quarter of 2009.
- According to data compiled by Bloomberg, many publicly traded U.S. lenders have non-performing loans that are more than 5% of their overall loan portfolios. Non-performing loans that exceed 5% of a lenders loan portfolio can pose a serious threat to the lender’s survival.
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.