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 10,318 and, on Monday, the market soared 133 points.
- On Tuesday, the Dow Jones Industrial Average fell 17 points.
- On Wednesday, the Dow Jones Industrial Average rebounded 31 points.
- On Thursday, the markets were closed for Thanksgiving..
- On Friday, the Dow Jones Industrial Average dropped 154 points and closed the week at 10,309.
- In October, unemployment rates increased in 29 states and hit record levels in Florida, South Carolina, Michigan and Delaware.
- Approximately 17,5% of Americans are either unemployed or underemployed.
- The Federal Deposit Insurance Corporation currently has 552 banks on its “problem list.” Since June, 136 banks have been added to the “problem list.”
- CNN reports that the ten most dangerous cities are Camden (N.J,), St. Louis, Oakland, Detroit, Flint (Mich.), New Orleans, Birmingham, Cleveland, Jackson (Ms), and Memphis.
- The Federal Reserve expects the economy to remain sluggish for the next “five or six years.”
- In October, home sales rose to the highest level in two and one-half years. The spurt was fueled, in part, by the tax credit available to first-time buyers.
- Almost one out of every four homeowners with a mortgage owes more on the mortgage than the home is worth.
- Over the next decade, the U.S. is expected to incur $4.8 trillion in interest obligations.
- U.S. airlines reported that passenger revenue was off 15% in October.
- Time magazine reports that approximately 63% of Americans believe that the pay of Wall Street executives is “completely out of line” and 71% favor putting limits on the compensation of Wall Street executives.
- The International Monetary Fund noted that half of the losses sustained by banks during the recent credit crisis could still be hidden on the banks’ balance sheets.
- On Friday, the market was disrupted by fears that Dubai’s investment arm could default on as much as $60 billion of debt.
- McDonald’s announced that it plans to open 1,000 new stores in 2010.
- Business Week reports that U.S. corporate income tax revenues have dropped 19.4%.
- ShopperTrak reports that retail sales on Black Friday were just 0.5% higher this year than last. In 2008, retail sales on Black Friday were 3% higher than in 2007.
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.