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 10,173 and, on Monday rose 24 points.
- On Tuesday, the Dow Jones Industrial Average fell 3 points.
- On Wednesday, the Dow Jones Industrial Average jumped 42 points.
- On Thursday, the Dow Jones Industrial Average plunged 116 points.
- On Friday, the Dow Jones Industrial Average fell 53 points and closed the week at 10,067.
- President Obama identified the creation of jobs as the biggest challenge facing our economy.
- Verizon announced that it was cutting its workforce by 6% and eliminating 13,000 jobs.
- Home Depot reported that it was eliminating 1,000 jobs.
- ATK Space Systems, the builder of booster rockets for the space shuttle, is laying off 420 employees.
- A survey of fifty economists reported that the government’s stimulus plan has saved as many as 1.2 million jobs; however, two-thirds say that the government needs to do more to help the economy.
- Apple reported its best quarterly results ever.
- Microsoft profits were up 60% – above expectations.
- The average college endowment fund was down 18.7% last year. Many of these institutions suffered huge losses investing in the toxic structured finance products that Wall Street dumped on unsuspecting investors.
- Toyota announced that it was suspending the manufacture and sale of many of its best-selling models as a result of recalls. The automobile company has recalled 5.3 million vehicles so far.
- Toyota dealerships could lose as much as $2.47 billion per month during the period that sales of its eight models remain suspended.
- Honda announced that it was recalling 646,000 Fit hatchbacks.
- Ben Bernanke was confirmed as Federal Reserve Chairman for a second term.
- A recent study by the Brookings Institute confirmed that more households whose income is below the poverty level live in the suburbs not in cities.
- In December, sales of existing homes experienced the largest monthly drop in 40 years.
- Banking regulators closed six banks this week bringing the number of banks closed in January to fifteen.
- The International Air Transport Association predicts that it will take the airline industry three years to recover from the recession.
- Leaders attending the recent World Economic Forum in Switzerland were in general agreement that there has been a huge breakdown in the public’s trust in government, financial institutions and big business. Unfortunately, no one seems willing to do anything about it.
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.