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 fell 32 points.
- On Tuesday, the Dow Jones Industrial Average advanced 184 points.
- On Wednesday, the Dow Jones Industrial Average rose 108 points and closed the year at 8776.39.
- On Thursday, the market was closed.
- On Friday, the Dow Jones Industrial Average rose 258 points and closed the week at 9035.
- Virtually all of the banks that have received billions of dollars in aid from U.S. taxpayers are refusing to disclose what they have done with the money. JP Morgan Chase, Bank of New York Mellon, Morgan Stanley, SunTrust, Regions, Citigroup and Bank of America are among 21 banks that have received at least $1 billion from the government but refuse to provide any specific information about how they used the money.
- Toyota has reported that it expects its first operating loss since 1938. Toyota’s U.S. sales were off 13.4% during the first eleven months of 2008.
- GMAC received $5 billion in federal aid.
- Banks reportedly cut lending by 55% in 2008.
- The International Council of Shopping Centers reported that holiday sales were the worst in 38 years.
- Approximately 160,000 retail stores closed in 2008.
- Retailers are expected to close tens of thousands of stores in 2009. Strategic Resource Group, a consulting firm, estimates that as many as 200,000 retail stores could close in 2009.
- The Associated Press reported that more and more companies are using unpaid furloughs of employees as a means of reducing costs. Last year the number of these temporary layoffs hit a 17 year high. Approximately 1.2 million were unemployed because of temporary layoffs in November.
- LyondellBasell Industries, a leading chemical company, has told lenders that it is considering filing for bankruptcy protection.
- On average, home prices in 20 metropolitan areas tracked by the S&P/Case-Shiller housing index showed a decline of 18% from a year earlier.
- The Federal Reserve will begin purchasing $500 billion in mortgage-backed securities this month in an effort to support the housing market.
- The Greenbrier has hired Goldman Sachs to evaluate what to do with the money-losing luxury resort.
- The Securities and Exchange Commission has reportedly ramped up its investigations of possible Ponzi Schemes following the criticism it received for failing to uncover Bernard Madoff’s $50 billion scheme.
- Consumer confidence reached a record low in December.
- Bank of America announced that it has completed its purchase of Merrill Lynch.
- Wells Fargo announced that it completed its purchase of Wachovia.
- Manufacturing activity has sunk to its lowest level in 28 years according to a recent study.
- The accountant who predicted Orange County, California’s bankruptcy back in 1994 estimates that ten or more municipalities will file bankruptcy in 2009.
- The governors of New York, New Jersey, Massachusetts, Ohio, and Wisconsin have asked the federal government to provide the 50 states with $1 trillion to help support education, welfare, and infrastructure costs. The states are experiencing steep deficits amid the current economic downturn.
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.