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 markets were closed on Monday for Martin Luther King Day.
- On Tuesday, the Dow Jones Industrial Average opened at 10,610 and soared 116 points.
- On Wednesday, the Dow Jones Industrial Average dropped 122 points.
- On Thursday, the Dow Jones Industrial Average fell 213 points.
- On Friday, the Dow Jones Industrial Average plunged 216 points and closed the week at 10,173.
- Forty-three states reported that unemployment rates increased in December. The unemployment rates were the highest in Michigan (14.6%), Nevada (13%), Rhode Island (12.9%), South Carolina (12.6%), and California (12.4%).
- Sixteen states have unemployment rates of 10% or higher.
- Walmart announced that it was eliminating more than 11,000 jobs at its Sam’s Club stores.
- General Motors plans to eliminate 8,300 jobs in Europe.
- Uno Restaurant Holdings filed for bankruptcy.
- Home construction levels are approximately 75% below their high levels in 2006.
- The U.S. Supreme Court ruled that limits on campaign contributions were unconstitutional. The Court’s order effectively puts government up for sale to the highest bidder.
- The five largest holders of U.S. government debt, in order, are the Federal Reserve and other government agencies, individual and corporate investors, China, Japan, and mutual funds.
- Banking regulators shuttered five banks this week bringing the total number of banks closed this year to nine.
- Charitable donations earthquake victims in Haiti exceed $355 million.
- Approximately 900 of the 3,000 automobile dealerships closed by General Motors and Chrysler are appealing the decisions to close them.
- Republican Scott Brown won the Massachusetts Senate seat previously held by Ted Kennedy. Brown’s election is expected to have a significant impact on proposed healthcare reform.
- A recent poll of college freshmen revealed that 78.1% regarded being well-off financially as very important. In 1969, only 42.2% of college freshmen held that view.
- Some of the country’s leading lending institutions report that consumer loan problems seem to be leveling off.
- Many credit card issuers have written off 10% or more of their loan portfolios.
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.