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 9665 and, on Monday, soared 124 points.
- On Tuesday, the Dow Jones Industrial Average fell 47 points.
- On Wednesday, the Dow Jones Industrial Average dropped 30 points.
- On Thursday, the Dow Jones Industrial Average plunged 200 points.
- On Friday, the Dow Jones Industrial Average sunk 22 more points and closed the week at 9488.
- The U.S. Labor Department reported that the economy suffered a net loss of 263,000 jobs in September. The national unemployment rate has now reached 9.8%.
- The private sector of the economy continues to lose the majority of jobs. ADP, the payroll processing company, reports that the private sector cut 254,000 jobs in September.
- Single people are feeling the economic crunch more that married people. The unemployment rate among singles is 13.5% compared to 6.3% for married people.
- The International Monetary Fund predicts that banks across the globe are facing another $1.5 trillion in write-downs. Moreover, this figure could grow in there are significant losses in the investment markets.
- Banking analyst Meredith Whitney predicted that the credit crunch may be only half over.
- Network Inc., which monitors fraud for approximately 3,000 companies, reported that the number of corporate fraud allegations have leveled off recently.
- Luxury car sales increased in September for Lexus, BMW and Porsche.
- The number of pending home sales jumped 6.4% in August.
- The New York Times reports that retailers are expecting flat sales this holiday season.
- The number of retired Americans who have begun collecting Social Security benefits increased by 19% in the most recent fiscal year. The record increase is attributable to more seniors choosing to retire early from a deteriorating job market.
- Embattled Bank of America CEO Ken Lewis announced that he would retire at year-end.
- Rio de Janeiro was awarded the 2016 Olympic Games beating out Madrid and Chicago.
- The American Bankruptcy Institute predicts that there will be more than 1.4 million personal bankruptcies filed this year. Personal bankruptcy filings have soared in recent months.
- Twenty-six banks have more than 20% of their loan portfolios at least 90 days delinquent.
- Three more regional banks were closed by regulators on Friday bringing the total bank closures in 2009 to 98.
- Approximately 47% of American households (71 million Americans) will not pay any federal income tax.
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.