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 9441 but, on Monday, the markets were closed for Labor Day.
- On Tuesday, the Dow Jones Industrial Average rose 56 points.
- On Wednesday, the Dow Jones Industrial Average rose 50 points.
- On Thursday, the Dow Jones Industrial Average jumped 80 points.
- On Friday, the Dow Jones Industrial Average dropped 22 points and closed the week at 9605.
- Monsanto announced that it would reduce its staff by approximately 8% in an effort to cut costs. As many as 1,800 jobs could be lost.
- Recent unemployment data presents a bleak picture. At present, there are approximately 14.9 million people out of work. Moreover, Moody’s Economy.com predicts that the unemployment rate will not drop back near 5% until 2014.
- Other disturbing employment news reported by MSNBC.com includes the following: the unemployment rate among teenagers is 25.5%; 9 million people who want full-time jobs are having to settle for part-time jobs: almost 5 million people have been unemployed for more than 27 weeks.
- The Department of Labor announced that job openings have fallen to the lowest level in nine years.
- Banking analyst Meredith Whitney says that U.S. home prices could fall another 25% as a result of high unemployment. She also expects another correction in the stock market.
- Foreclosure filings in the U.S. exceeded 300,000 for the sixth consecutive month.
- Consumer credit dropped by $21.6 billion in July as Americans reduce their debt.
- Gold prices surged above $1,000 per ounce for the first time since February.
- In 2009, the top ten states for bankruptcy filings are Nevada, Tennessee, Georgia, Indiana, Alabama, Michigan, Ohio, Kentucky and Illinois.
- The U.S. Census Bureau reports that 46.3 million Americans were uninsured in 2008.
- The Census Bureau also reported that the median household income in the U.S. during 2008 was $50,303 and that 13.2% of the population was below the poverty level.
- McDonald’s reported a 2.2% rise in sales but missed analyst’s expectations suggesting that even the fast-food giant may be feeling the impact of a sluggish economy and high unemployment.
- PricewaterhouseCoopers’ lodging forecast anticipated that hotel occupancy rates will rise over the next 18 months as a result of heavily discounted room rates.
- The number of banks closed this year by banking regulators rose to 92 as 3 more banks were shut down on Friday.
- Morgan Stanley Chief Executive Officer John Mack is retiring at year-end.
- The SEC Inspector General outlined more than 40 proposals aimed at toughening the agency’s investigations.
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.