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:
- On Monday, the Dow Jones Industrial Average dropped by 680 points.
- On Tuesday, the Dow Jones Industrial Average rose by 263 points.
- On Wednesday, the Dow Jones Industrial Average advanced 173 points.
- On Thursday, the Dow Jones Industrial Average tumbled 215 points.
- On Friday, the Dow Jones Industrial Average rebounded 259 points and closed the week at 8635.
- The first week in December revealed ongoing deterioration in the jobs market. Public policy makers need to address these problems immediately to minimize harm to the overall economy.
- U.S. companies slashed 533,000 jobs in November. More than 1.9 million people have now lost jobs this year. The unemployment rate stands at 6.7%.
- More than 4,000,000 people collected unemployment benefits in November.
- CNBC has reported that the merger between Merrill Lynch and Bank of America could result in the elimination of up to 30,000 jobs.
- Canadian companies slashed over 70,000 workers in November.
- AT&T announced that it would cut 12,000 jobs.
- Dupont is laying off 6,500 workers.
- Avis, the car rental company, is eliminating 2,200 jobs.
- United Airlines plans to trim more than 1,000 jobs.
- Credit Suisse is cutting 5,300 jobs worldwide. This is approximately 11% of its workforce.
- The Big Three Automakers continue to seek billions of dollars in financial support from the U. S. Government. Bankruptcy is possible for each of these companies and could have a devastating impact on employment. Experts have estimated that between 2,000,000 and 3,000,000 jobs are, directly or indirectly related to the Big Three.
- At least 14 states would be exposed to losing more than 50,000 jobs if the Big Three go under. The states include Michigan, California, Ohio, Texas, Indiana, Florida, Illinois, New York, Tennessee, Pennsylvania, Kentucky, North Carolina, Missouri and Georgia.
- Congress appears poised to provide short-term aid to the Big Three.
- The chief economist for the Economic Outlook Group predicts that the economy will have lost three to four million jobs by the end of 2009.
- Harvard University, which reportedly has the nation’s largest endowment among academic institutions, has lost about $8,000,000 since June 30, 2008. Many other academic institutions have also sustained significant losses.
- The Fed announced that it has observed weaker economic activity in all of its districts.
- November’s retail sales were the worst in thirty years.
- At the end of the third quarter, there were a record 1.35 million homes in foreclosure.
- In October the Consumer Confidence Index hit its lowest level since its creation in 1967.
- Twenty-three banks in the U.S. have failed this year.
- Major airlines are expected to cut more flights as demand for air travel slumps.
- Business Week reports that 11,584 of 11,585 stock mutual funds have lost money this year.
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.