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 7063 and, on Monday, plummeted 300 points. This marked the Dow’s lowest closing since April, 1997.
On Tuesday, the Dow Jones Industrial Average fell 38 more points.
On Wednesday, the Dow Jones Industrial Average rose 150 points.
On Thursday, the Dow Jones Industrial Average plunged 281 points.
On Friday, the Dow Jones Industrial Average rose 33 points and closed the week at 6627.
Job losses attributable to the current recession are now estimated to exceed 4,000,000.
ADP, which handles paychecks for approximately 500,000 companies in the U.S., estimates that almost 697,000 jobs were lost in February.
HSBC, Europe’s largest bank, announced that it would slash 6,100 jobs in the U.S.
Gulfstream Aerospace, a private jet manufacturer, is laying off 1,200 employees and will furlough another 1,500 employees for five weeks.
Borders, the bookstore chain, is cutting 742 more jobs.
AnnTaylor Stores plans to close 163 retail outlets this year.
Federal unemployment statistics reflect that the unemployment rate is currently 8.1%. Remember that this statistic does not include part-time workers and several categories of people that do not have jobs.
Large law firms around the country are feeling the pinch big time. Major firms are dismissing large numbers of attorneys and staff. Moreover, many are offering new hires up to $75,000 to delay starting their employment.
Latham & Watkins, the fourth largest law firm in the U.S., fired 190 lawyers and 250 staff members last week.
Orrick, Herrington & Sutcliffe would dismiss 300 employees, including lawyers.
Pillsbury Winthrop Shaw Pittman laid off 55 attorneys and 100 staff.
King & Spalding recently laid off 37 lawyers and 85 staff members.
Bankruptcy filings in 2008 were 31% higher than in 2007.
Spansion, the flash memory drive maker, filed for bankruptcy.
More and more hotels are facing bankruptcy and/or foreclosure. PKF Hospitality Research estimates that approximately 36% of full-service hotels will lack adequate cash flow to pay their mortgages in 2009.
Investors pulled $33 billion out of stock mutual funds in February.
American International Group (“AIG”) lost $61.7 billion in the fourth quarter of 2008.
AIG received $30 billion in additional aid from the federal government.
Personal computer sales are expected to decline almost 12% this year.
Shares of Citigroup stock are now priced at less than $1/share.
Mortgage delinquencies have increased to 7.88% of all mortgage loans. Furthermore, it is estimated that 8.3 million borrowers now owe more on their mortgages than the property is worth.
General Motors’ auditors have expressed doubts about its ability to continue as a going concern.
Walmart reported strong February sales.
The Federal Reserve Board of Governors refuses to make information public about bailout loans to financial institutions. Where’s the transparency. It just looks like the same old Washington.
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.
