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 8744 and, on Monday, jumped 104 points.
- On Tuesday, the Dow Jones Industrial Average rose another 68 points.
- On Wednesday, the Dow Jones Industrial Average dropped 35 points.
- On Thursday, the Dow Jones Industrial Average soared 188 points and closed above 9000 for the first time since January.
- On Friday, the Dow Jones Industrial Average rose another 24 points and closed the week at 9093.
- A recent survey of 49 economists projected that the economy should begin an economic recovery within several months but that the recovery will be long and slow.
- U.S. airlines’ revenues were 26% lower in June, 2009 than they were in June, 2008.
- Major airlines are expected to significantly cut capacity this fall as they continue to struggle with harsh economic conditions. Cuts in capacity would mean less convenient travel options and higher prices.
- The number of unemployed workers seeking unemployment benefits for the first time last week was 554,000. This was above earlier estimates. The government reports that 6,225,000 people continued filing claims for unemployment.
- Unfortunately, the logjam of unemployment claims has resulted in many delays in the payment of unemployment benefits.
- Continental Airlines announced that it was laying off 1,700 more employees as the company struggles with current economic conditions.
- Avon, the cosmetics company, announced that it was closing two plants and cutting 1,200 jobs.
- Today the minimum wage increases to $7.25/hour.
- Coca-Cola reported that profits were up 43% in the second quarter of 2009.
- Apple’s second quarter profits were up 15% beating expectations.
- Ford posted a $2.3 billion quarterly profit.
- UPS quarterly profits were almost 50% lower than in 2008.
- American Express second quarter earnings were down 48% from a year earlier.
- Microsoft’s quarterly profits were 29% lower than the same period last year as the company reported its revenues dropped for a second consecutive quarter.
- Goldman Sachs has repaid the $10 billion that it received in TARP funds and repurchased warrants that it gave to the U.S. Treasury in connection with the TARP program for an additional $1.1 billion.
- Economic conditions continue to be difficult across the globe.
- The U.K. economy shrank by approximately 8% in the three months ended June 30, 2009. This was more than twice the drop forecast by experts.
- The unemployment rate in Spain has reached a stunning 17.9%.
- In a recent survey of small business owners, 40% said that they were unable to get adequate financing to operate their businesses.
- While home prices continued to slide in June, home sales rose for the third straight month.
- A number of luxury hotels are defaulting on their loans as business travelers cut back. Unfortunately, the entire hotel industry is facing occupancy problems and many are offering huge discounts to attract guests. Starwood is reportedly offering discounts of up to 50% on some rooms.
- Fortune magazine reports that the next “headache” for banks will be a commercial real estate bust.
- Just weeks into their new fiscal years, many states are already seeing revenue shortfalls that are likely to require further cutbacks on spending and the elimination of more services.
- The city of Detroit is at risk of having to file bankruptcy according to recent reports.
- The Center for Disease Control estimates that the H1N1 flu virus could hit up to 40% of Americans over the next two years.
- Seven more banks were closed by regulators last week. Sixty-four banks have been closed since the beginning of the year.
- Guaranty Financial, the second largest bank in Texas, announced that it is critically short of capital. It is expected to fail.
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.