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 8540 and, on Monday, plunged 201 points.
- On Tuesday, the Dow Jones Industrial Average fell 16 points.
- On Wednesday, the Dow Jones Industrial Average dropped 23 more points.
- On Thursday, the Dow Jones Industrial Average surged 173 points.
- On Friday, the Dow Jones Industrial Average lost 34 points and closed the week at 8438.
- The Securities & Exchange Commission and Commodity Futures Trading Commission are seeking “unimpeded” oversight of the $592 trillion over-the-counter derivatives market.
- Approximately 25% of U.S. employers either have cut or are planning to cut matching contributions to employees’ 401(k) plans.
- Verified Identity Pass, which offered Clear paid security lines at airports, has shut down its operations.
- MySpace is eliminating 300 overseas jobs in addition to the 400 domestic jobs it eliminated last week.
- The seed maker Monsanto will cut approximately 4% of its work force. This action is expected to impact 900 employees.
- Chicago has offered city workers several options. Workers can either accept 16 days of unpaid furloughs or it will eliminate 1,500 jobs.
- Kimberly-Clark, the maker of Kleenex tissues and Huggies diapers among other products, announced that it was eliminating 1,600 jobs.
- General Motors announced the elimination of 4,000 white-collar jobs.
- British Airways announced that 7,000 employees have voluntarily agreed to take pay cuts.
- Goodyear Tire & Rubber cut almost 25% of the work force at its Union City, Tennessee plant. Approximately 500 workers will be affected.
- Sales of existing homes rose 2.4% in May. Approximately one-third of these home sales involved a foreclosed or distressed property.
- Both UBS and Morgan Stanley are expected to post second quarter losses.
- CNN Money reports that 19 states have yet to pass balanced budgets for fiscal 2010 that begins in most states on July 1. Many states face the prospect of shutting down services if quick action is not taken.
- Forty-five banks have failed in the U.S. this year. Georgia is the state with the most bank failures. Nine Georgia banks have failed this year.
- Home prices are currently hovering around 2003 price levels.
- General Motors’ creditors that do not have “critical vendor” status may go unpaid for the foreseeable future. The list includes various utilities and media- buying firms.
- The New York Times reports that U.S. savings are at the highest point in 15 years.
- According to the Center for Disease Control, the number of new swine flu cases continues to grow. There were 6,300 new cases reported during the past week. This bodes ill for the fall/winter flu season.
- Fifteen states have depleted their unemployment insurance reserves and are borrowing from the U.S. Treasury in order to pay benefits. More states are expected to seek federal support in the coming months.
- Consumer confidence in the U.S. has risen for the fourth month in a row.
- China is advocating the adoption of a new global currency.
- Pursuant to an agreement with the Obama administration, General Motors will remain responsible for product liability claims involving its vehicles even after it emerges from bankruptcy.
- Even if Congress passes the proposed plan to overhaul financial regulation, it may not be enough to avoid putting U.S. firms at a competitive disadvantage. The problem is that European policymakers are adopting even harsher rules in an effort to restore integrity to European financial markets. Unfortunately, the U.S. may lose its position as the world’s best regulated, most trustworthy marketplace.
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.